Sports betting and online casino giant Ladbrokes Australia has penned a three-year deal with Tasmania Racing that sees Ladbrokes receive naming rights for three of Tasmania’s four horse racing courses.
Elwick Mowbray and Spreyton racecourses sometimes referred to as Hobart, Launceston, and Devonport, will become known a Ladbrokes Park Elwick, Ladbrokes Racing Centre Mowbray, and Ladbrokes All Weather Spreyton from August 1st.
As part of the newly signed deal, Ladbrokes will also become the principal sponsor the Tasmanian Summer Racing Carnival where $3.7 million worth of prize money is up for grabs. The deal will continue into 2022 and provides Tasracing, the authority for greyhound, harness and thoroughbred racing in Tasmania, with much-needed marketing funds.
A Deal Too Good to Refuse
Tasracing chief executive Paul Eriksson said of the deal with Ladbrokes, “Sponsorship revenue and the level of marketing support offered to clubs across all codes is set to increase significantly thanks to the Ladbrokes deal. The new partnership will assist Tasracing and clubs to continue pursuing growth in race day attendance, club membership, race horse and greyhound ownership and participation in racing.”
Ladbrokes’ Australian business already has several deals with tracks around Australia. The gaming is partnered with mainland tracks in Melbourne and Moonee Valley, and has deals with several greyhound clubs in New South Wales.
Jason Scott, chief executive for Ladbrokes Australia, said “The chance to partner with greyhounds, harness and thoroughbreds for at least the next three years in the progressive Tasmanian market was simply too good to refuse.”
The move comes as Tasracing recorded six-year highs on horse racing, greyhound, and harness betting turnover with $576 million, an increase of 12 percent.
Ladbrokes Coral Fined £5.9 Million in UK
While Ladbrokes Australia was busy toasting its new deal, its English counterpart was left reeling after being fined £5.9 million (A$10.48 million). Ladbrokes Coral, now under the ownership of GVC Holdings, was slapped with the massive fine by the United Kingdom Gambling Commission (UKGC) for failing to protect vulnerable customers.
The UKGC detailed how one customer of Ladbrokes Coral lost £98,000 (A$174,000) and had requested to no longer receive promotions, yet they were still sent them by the gambling company. The customer lost the huge sum over a two-and-a-half-year period despite having 460 attempted deposits declined.
Another customer spent £1.5 million (A$2.66 million) over almost three years, logging into their account up to 10 times per day one month and losing £64,000 in a single four-week period.
An investigation uncovered major failings over a three-year period with the UKGC revealing Ladbrokes and Coral had insufficient safeguards in place to “prevent customers suffering gambling harm and against money laundering.”
Although these offenses took place between November 2014 and October 2017, Ladbrokes Coral’s new owner GVC Holdings are liable for the fine. GVC Holdings took over Ladbrokes Coral for £3.1 billion (A$5.5 billion) in 2018.
This is one of the largest penalties ever imposed by the UKGC and is made up of a £4.8 million (A$8.52 million) fine and £1.1 million (A$1.95 million) divested from money gained from customers as a result of its failings.
Shares on GVC Holdings, trading on the London Stock Exchange, fell 2.67 percent
Five of the Biggest Fines From the UKGC
The UKGC has dished out several massive fines in recent years, this one being the third-largest since the regulator cracked down on gambling sites.
888 Holdings was fined a record £7.8 million (A$13.85 million) in August 2017 with William Hill finding itself on the end of a £6.2 million (A$11 million( fine in February 2018 after breaching anti-money laundering and social responsibility regulations.
Weighing in fourth-place, after this GVC fine, was Ladbrokes Coral in November 2017 after it became apparent some of its customers had managed to gamble £1.3 million (A$2.3 million) in stolen money; the company was fined £2.3 million (A$4.08 million).
Lastly, Paddy Power Betfair received a £2.2 million (A$3.9 millions) fine in October 2018 for failing to protect customers and stop stolen money being gambled.