Bookmakers granted injunction against CTL

Orville Clarke, Gleaner Writer

The United Bookmakers Asso-ciation (UBA) has been granted a 10-day injunction by the Supreme Court against Caymanas Track Limited (CTL), the Ministry of Finance and the Betting, Gaming and Lotteries Commission, barring them from taking action resulting from an impasse between CTL and the UBA over rights fee.

According to UBA chairman Xavier Chin, who is managing director of Track Price Plus Limited, this will allow member companies of the UBA to operate after April 1 without the threat of a forced shutdown of betting jobs across the island.

CTL in a proposal had served notice of raising the rights fee paid to them by the bookmakers from the current 3.5 per cent to 10 per cent, effective April 1, 2011.

Independent arbitrator

Representatives of the UBA comprising Track Price Plus, Markham Betting and Champion Betting Limited, met with CTL's deputy chairman, Raphael Gordon, and director, Danvillle Walker, on Wednesday, March 23, in which the UBA not only proposed an independent arbitrator, but a one-month extension to the 2010 contract which was set to expire on March 31.

According to Chin, CTL agreed to the arbitration but not the extension of the existing contract, hence the impasse. He further explained that CTL had indicated back in December that they would be implementing a tote monopoly in Jamaica, meaning any CTL bet that a bookmaker offers will have to be put through the tote, and the bet that they did not offer will be subject to a rights fee of five per cent.

Chin said this prompted an emergency meeting between the UBA and Finance and Planning Minister Audley Shaw. Coming out of that meeting, a three-month extension with the existing terms was granted and the minister instructed the CTL board to meet and discuss the issues with the bookmakers.

Shaw also noted that a tote monopoly is a policy decision and the board cannot implement such a process without the approval of the minister and Cabinet.

Chin explained that the increase from 3.5 to 10 per cent would see the rights fee payments by the bookmakers moving from $19 million to $78 million.

"In our opinion, the board of CTL is acting irresponsible, arrogant and is using their dominant position to bully the bookmakers without consideration to the revenue that is at risk to both the Government of Jamaica and the industry," argued Chin.

"The bookmakers employ over 1,500 persons across the island and their livelihood would be affected, and also the Government's revenue would be compromised, should CTL get their way," he added.

Losing money

When contacted yesterday, CTL director and acting CEO, Camille Buchanan, said she was aware of the injunction, stating that the promoting company would be unable to do anything until when the injunction expires on April 11.

"In light of this, we have granted the authority for the bookmakers to receive and negotiate bets until further advised."

On Wednesday at the Guineas press launch, the company's deputy chairman, Raphael Gordon, confirmed that CTL has been losing money since the legislation to extend opening hours for bookmakers, particularly on local racedays in competition with CTL, and steps have to be taken to address the situation.