Skip to main content

the shambles of Sports Alive continues to unravel

The only good thing to come out of this utter schemozzle is that laws should be tightened and hopefully enforced in future. But then again, that's what was supposed to happen with the banks....

Tote chief snubs $14m claim

The liquidator of failed sports betting company Sports Alive has demanded $14 million compensation from TOTE Tasmania chief executive Craig Coleman and Victorian directors.

In a letter early this month, liquidator Hamish MacKinnon demanded the money be paid by December 14.

It is understood Mr Coleman has refused to pay and the TOTE Tasmania board has refused to discuss the situation.

...
...

The letter alleged Mr Coleman had a conflict of interest in simultaneously being chairman of Sports Alive and chief executive of TOTE.

In a letter to all Sports Alive directors, Mr MacKinnon alleged: Sports Alive was trading while insolvent from June 2008, including the period under Mr Coleman's chairmanship. Sports Alive was in breach of the Race and Sports Betting Act by failing to keep punters' money separate from administrative funds. Directors had breached their duties and had failed to act in good faith in the best interests of the company.


For allowing this to go on for three years, the ACT Gaming and Racing Commission should be criminally liable... but they'll weasel out of it, like a typical pointless bureaucracy. Any other state or territory in Australia would have flagged this very early and barred them from trading while insolvent. No betting licence in the ACT is worth the paper it is written on anymore.

Comments

  1. Hi Scott,

    Just catching up with your blog, and like to comment about this post. The ACT Commission may have been inept, but other bodies in Australia are not totally vigilant either. For example, in Betfair's current appeal to the High Court they have argued, amongst other points, that given their revenues are capped at 5% net commission by the Tasmanian Gaming Commission, to have to pay Racing NSW's 1.5% turnover fee would account for most of their revenue, thus grossly unjust. This argument appears continually in both Betfair's application and appeal to the High Court.
    However, as you know Betfair's revenues are not capped at 5% net commission as some, not all, do pay the PC. The PC of between 20%-60% is considerably greater than the claimed normal 5% commission. Are the Tasmanian Gaming Commission turning a blind eye to this charge on some accounts?
    What I would love answered by a journalist such as yourself is have Betfair misled the High Court by claiming revenues of no more than 5% (it's there in black and white - literally - in the transcripts) or have Betfair breached their licensing agreement by charging the PC to some accounts?

    Regards, John.

    ReplyDelete
  2. sorry John, don't see the relevance. Having dealt with the TGC with a previous firm, I doubt there's anything they don't have their bunch of meddling bureaucrats involved in.

    A bookie falling over because a govt body was negligent in ensuring the business was solvent and punter funds were safe is not remotely similar to a debate over the legalities of an unpopular charge - it's like comparing the safety of an airline to another firm charging for excessive baggage fees...

    ReplyDelete

Post a Comment

Thanks for your comments, but if you're a spammer, you've just wasted your time - it won't get posted.

Popular posts from this blog

lay the field - my favourite racing strategy

Dabbling with laying the field in-running at various prices today, not just one price, but several in the same race. Got several matched in the previous race at Brighton, then this race came along at Nottingham. Such a long straight at Nottingham makes punters often over-react and think the finish line is closer than it actually is. As you can see by the number of bets matched, there was plenty of volatility in this in-play market. It's rare you'll get a complete wipe-out with one horse getting matched at all levels, but it can happen, so don't give yourself too much risk...

Kentucky Derby preview

It's America's big day of racing, where 90% of them will be there to be seen and most won't have a clue what difference Churchill Downs Inc's latest takeout hike does to shaft them on every bet placed. Throw in the standard arguments about race-day medication in the US and the recent New York Times/PETA expose on yesterday's Oaks-winning trainer Steve Asmussen, and racing in North America could be in better health.

Still, it's one of the elite races and great occasions of the world, and stepping up to the plate is Jon da Silva again, @creamontop, with his preview in a very American style. (No I don't understand Brisnet figures either...)

------------------------------

The Kentucky Derby Presented by Yum Brands

They say you should avoid food additive E-numbers which you can’t with Yum Brands…

Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwid…

Henry VIII Novices’ Chase

It's not just about the Tingle Creek tomorrow at Sandown, there's a Grade 1 Novice Chase amongst the rather decent supporting card. Lining up for the preview is astute NH enthusiast Sam Tribe, @samtribe87.

---------------------

Racing Post Henry VIII Novices’ Chase
Grade 1 Chase, 2 Miles
Sandown 13:50
Likely going Soft, Good to Soft in places


With doubts concerning the fitness of last year’s Queen Mother Chase winner Sire De Grugy and of the two mile chase king Sprinter Sacre (despite bullish remarks from Henderson) there is a chance for another to step into the limelight. Both have won the feature race of the day, The Tingle Creek Chase and that will more than likely throw a few into the hat. However, I have chosen to take a look at the Henry VIII chase, which was changed to a grade 1 in 2011 and has been won by some nice prospects in the past (Somersby and Al Ferof to name but a few). Let’s hope that a potential Champion Chase contender of the future will feature in this …