The CEO of ClubsNSW, Anthony Ball, has written to members advising them that the digital wagering deal with CrownBet will no longer go ahead.

In a memo to members, which has been seen by TheShout, Ball cited “ongoing regulatory uncertainty” as the reason for CrownBet walking away from the agreement.

“In February 2017, ClubsNSW announced CrownBet as its Official Digital Wagering Advertising Partner,” Ball told members.

“Clubs will recall that ClubsNSW conducted a tender in relation to digital wagering as part of our overall strategy to assist clubs in building a stronger digital footprint. The tender was designed to inject competition into the club wagering market due to the perceived poor service and lack of profitability of the existing offer. In addition, the tender sought to allow clubs to benefit from the rapidly growing digital wagering market, which they had previously been excluded from.

“ClubsNSW obtained the best possible legal advice that is strongly of the view that the offer is legal.

“On 13 February 2017 Liquor & Gaming NSW (L&G NSW) issued a letter to clubs stating that the Department was considering whether the arrangements ‘are consistent with regulatory requirements’ and would ‘write to you again when L&G has further considered the matter’.”

He added: “The parties have sought to obtain clear advice from L&G NSW and the Supreme Court that the proposed digital wagering advertising offering to clubs was legal, going as far as seeking a determination by the Supreme Court.

“In November, the Supreme Court determined not to issue a decision on the legality of the offering, instead ruling that it was the responsibility of L&G NSW to provide guidance on the legality of the offer.  Late last week, L&G NSW conveyed its final position to CrownBet and ClubsNSW and disappointingly, 12 months after it first assessed the offer, continues to refuse to provide any meaningful guidance.

“ClubsNSW has always advised clubs that, even though it considered the offering to be legal, clubs should wait for the regulator’s position before proceeding, to remove any risk for directors and managers.”

Ball said that without a clear direction from the regulator as to whether the deal is legal, “the commercial reality is that the offer cannot proceed”. Adding: “Therefore the parties have agreed not to proceed with the offer and CrownBet will not roll out its advertising solution to clubs in NSW.”

He added that while ClubsNSW is disappointed that the deal will no longer go ahead it remains committed to “improving outcomes for clubs in the areas of wagering and digital commerce.”

TheShout has contacted CrownBet for comment on the cancellation of the deal.

Andy Young

Andy joined Intermedia as Editor of The Shout in 2015, writing news on a daily basis and also writing features for National Liquor News. Now Managing Editor of both The Shout and Bars and Clubs.

Leave a comment

Your email address will not be published. Required fields are marked *