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Johannesburg – The South African Bookmakers Association (Saba) respects the Competition Commission’s decision not to refer a complaint to the Competition Tribunal.
Saba and Gauteng Off-Course Bookmakers’ Association (Goba) and its member Hollywood Sportsbook lodged the complaint with the Commission against Phumelela, Gold Circle, Kenilworth Racing, Tellytrack and others, about “excessive” subscription fees as far back as 25 July 2014.
According to Phumelela Gaming & Leisure’s Sens announcement earlier on Wednesday July 27 the complaints alleged that the excessive subscription fees would prevent competition by third party bookmakers and contravened certain sections of the Competition Act. The Commission decided not to refer the complaint to the Competition Tribunal.
Phumelela concluded that the Commission did not find the Tellytrack licence fee “excessive”, the Sens stated. However, the complainants have 20 business days to refer the matter to the Tribunal.
Subscription fees are 3% of over-the-counter turnover, said Phumelela CEO Rian Du Plessis. “The fees meet international requirements and standards.”
Dermot O’Connell, betting operations manager for Hollywood Sportsbook, referred Fin24 to a statement issued by Saba, published on July 19 2016, in response to the matter. “It adequately sums up the bookmaker’s position and we respect the position,” he said.
The statement explained that the Commission found that a large number of bookmakers have been paying a lower fee for the Tellytrack channel and not paying the higher fee demanded by Tellytrack. This rendered the Commission unable to assess the impact of the fee increase on competition.
Although the new Tellytrack fee might be higher, it has not been “fully or consistently” implemented and several bookmakers had rejected the price, it stated. “It would be impossible to show anti-competitive effects resulting from the conduct.”
The bookmakers do not regard the Commission’s decision as being “adverse” to their contentions. Du Plessis told Fin24 that the bookmakers had indicated how much they would be prepared to pay. “And we should take it or leave it. We are going to lodge a complaint against them. That is simply not on,” he said.
“It has never been the attitude of the bookmakers represented by Saba that they are entitled to the Tellytrack channel for nothing,” stated Saba. “They have never maintained that they are entitled to a ‘free ride’.” The bookmakers represented by Saba would be prepared to pay a reasonable fee for the Tellytrack channel.
Tellytrack and its partners will lodge a complaint with the commission against the bookmakers for “collusion”. “We will most certainly be there,” said O’Connell.
Read the full statement by SABA here.
