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Murdoch’s betting play is about to fall apart - July 2023
As Lachlan Murdoch would know, his family’s fondness for gambling is popularly attributed to his great-grandfather Rupert Greene, who was so unsuccessful at it that his friends secured him a job as race starter at Flemington racecourse for 31 years, a job which barred him from betting on horses.
Lachlan’s own form as a punter is still undetermined.
Next month he and his father Rupert face a make-or-break decision on Fox Bet, Lachlan’s attempt to break into the lucrative online betting industry.
A year ago, News Corp was pouring money into Betr, its joint start-up with gaming entrepreneur Matthew Tripp. The key to this transaction was the plan heavily pushed by Lachlan to merge News Corp and Fox Corp, with Betr becoming the Australian version of Fox Bet. Betr would be the first example of Fox/News synergy.
Nationwide News began with a modest $2.9 million outlay, but a flurry of capital raisings up to late December pushed its total investment to $65 million.
In January, however, Lachlan had to throw in the towel on the Fox-News merger idea, which meant the whole international Fox Bet plan was toast, and overnight News Corp’s risk appetite for Betr disappeared.
As this paper reported in February, News reported a $US33 million equity loss from affiliates in the December half year, most of it from the investment in Betr. That $US33 million figure is after tax, of course. That makes the pre-tax loss in Aussie dollars around $70 million, with a further $US10 million loss from equity affiliates in the March quarter. News Corp has well and truly lost its shirt on the gee-gees.
Of course losing money doesn’t mean that betting platforms aren’t worth anything. Fox emerged from last November’s mediation tussle with UK giant Flutter Entertainment with confirmation that it has a valid 10-year option to buy 18.6 per cent of Flutter’s FanDuel, which claims to have half the US online betting market. FanDuel is yet to break even, but the sliding option deal currently values it at $US22 billion.
But it was Fox Bet that was to be Lachlan’s big play. While he was keen to use Fox Sports coverage as a springboard to build a sports betting platform, he didn’t want Fox to run it. Instead, in 2018 he did a deal with The Stars Group (TSG) to run Fox Bet as a joint venture.
Months later Flutter bought TSG and inherited control of Fox Bet. Fox claims Flutter starved Fox Bet of funds, favouring FanDuel instead – a claim which the Judicial Arbitration and Mediation Services decision in November rejected.
Critics say Fox Bet’s technology is clunky. It is rolled out in just four states and has less than 1 per cent of the US market.
So, it’s decision time. In August, Flutter can walk away from the Fox Bet joint venture, which means either Fox steps up with its own funding and organisation to run it, or Fox Bet gets canned.
It’s a tough decision, given all the personal capital the Murdoch scion has invested in the idea of building a betting empire. That’s all about to fall apart, unless he doubles down. Suppose he has to ask himself: Do I feel lucky?
(AFR)
Sportsbet splashed more than $64m on gambling ads in 18 months - July 2023
Sportsbet, the country’s largest online bookmaker, has spent $64 million on television ads during live sport and racing events in the past 18 months, more than triple the amount spent by rivals Tabcorp and Ladbrokes.
Confidential spending data, compiled by researchers at Nielsen and obtained by The Australian Financial Review, shows the extent of spending by bookmakers at a time when the federal government is considering whether to place a ban on gambling advertising on television
The proposal from a parliamentary inquiry has worried the major broadcasters, with bookmakers already scaling back their spending. There are fears a complete ban will choke off tens of millions of dollars that flow into the coffers of broadcasters and sporting organisations.
The data shows Tabcorp has spent only $5 million since the government’s online gambling inquiry commenced in mid-October. Other major competitors also reduced the amount they spent on the Nine Network, Seven Network and Network Ten as the inquiry dragged into the new year.
The inquiry, chaired by Labor MP Peta Murphy, recommended two weeks ago that the government completely ban gambling advertising on television, radio and social media platforms.
Wagering companies that would be worrying about the impact of that change are Sportsbet, which has spent $64.4 million, and the Entain-owned Ladbrokes and Neds brands, which spent a combined $37.6 million on advertising on television networks between January last year and May.
Outside of social media platforms, television is the most commonly used platform to advertise or promote a brand. The impact of the ban would not only affect the market share of the biggest spenders, but the amount of advertising revenue television networks receive.
Gambling ads are typically used by a wagering company for two reasons: to raise brand awareness or to promote inducements around a particular sporting event or racing carnival.
Up in lights
Nielsen’s data does not account for in-house stadium advertisements or sponsorship on jerseys, which would also be banned under a government recommendation. It also does not count advertising on subscription television provider Foxtel and its streaming service Kayo Sports.
But it paints a picture for just how intertwined sports betting and key racing and sports events are. Most of Sportsbet’s ads run in the AFL and NRL seasons as the wagering company is the official partner for both codes. Data from March to September – when both competitions run – show more than $32 million was spent in that six-month period alone.
Ladbrokes, which has spent $20.2 million in 17 months, skews its spend to the AFL and NRL finals. From September to November 2022, during the spring racing carnival, Sportsbet spent $16.8 million – more than the total amount spent by Tabcorp over an 18-month period.
That is largely due to Tabcorp dramatically scaling back the amount it spends with broadcasters. Tabcorp has spent just $5.5 million on television advertising since October, despite the Melbourne Cup Carnival running in November. That means it spent $10.8 million from January to September.
It was not the only one to reduce spend in that time – all other wagering companies spent millions less during the inquiry period than in the months before.
Tabcorp’s dramatic drop in spend coincides with comments made by the company’s chief executive, Adam Rytenskild, at the inquiry. At the time, Mr Rytenskild said the company would voluntarily stop all advertising on free-to-air television during the day by 2024.
BetR, the News Corp-backed wagering group that began advertising when it launched in October, has so far spent almost $15 million.
The smallest spender is BlueBet, which contributed just $3.3 million to the $155.4 million spent in the period. PointsBet, which recently sold its operations in the United States to Jay Z-backed Fanatics, spent $12.6 million in the same period.
The government is meeting with broadcaster and wagering companies to expedite a process that will crack down on issues associated with the wagering sector.
The sweeping gambling ad ban – worth more than $300 million last year – was one of 31 recommendations made by Ms Murphy’s parliamentary inquiry. Other recommendations include the appointment of a minister dedicated to reducing online gambling harm, the creation of a national regulator and changes to behavioural algorithms in gambling apps.
For their part, television executives and most wagering companies are opposed to a blanket ban, though some concede a reduction is feasible. Tabcorp is unconcerned, but the ban would not include ads for physical shop premises or ads that appear during horse or greyhound racing (Tabcorp currently holds exclusive wagering licences in NSW and Victoria).
Sportsbet chief executive Barni Evans said last month that while his company supported several recommendations made by the inquiry, prohibition on advertising was a step too far.
“We believe an approach that significantly reduces the number of ads rather than complete bans would respond to community concerns, while still supporting sport and media,” Mr Evans said.
(AFR)
Gambling ad ban would hurt footy and media: Sportsbet - May 2023
Opposition Leader Peter Dutton’s budget reply assault on gambling advertising during sports broadcasts has sparked anger among TV executives, who say they could lose hundreds of millions of dollars in revenue.
Mr Dutton has proposed banning gambling advertising for an hour before and after sporting matches because “footy time is family time”.
“The bombardment of betting ads takes the joy out of televised sports,” he said. “Worse, they are changing the culture of our country in a bad way and normalising gambling at a young age.”
The proposal would potentially have the most severe repercussions for the broadcasters of the AFL and NRL, including Seven Network, Nine Entertainment and pay-TV operator Foxtel. The media companies declined to comment publicly. Nine is the publisher of this masthead.
London-listed Sportsbet, part of London-listed Flutter Entertainment, has about half of Australia’s online bookmaker market and its advertising is omnipresent during sports broadcasts.
A Sportsbet spokesman supported “balanced” reform, warning against moves that would restrict the amount of money going into media companies and sporting bodies.
“Thursday’s announcement, which focuses solely on sport broadcasts, risks leading to significant impacts on sport and media funding,” the spokesman said.
“We encourage all political parties to work constructively in consultation with affected sectors on proportionate solutions that achieve this balance while reducing harm.”
Little warning
The surprise announcement comes at a tricky time for the online gambling industry, sports bodies and big media organisations. There has been growing support among MPs and voters for a crackdown on online bookmakers, particularly curbing the sheer volume of advertising that is plastered across TV, radio and social media.
Some executives at the companies were given a heads-up by the Coalition’s communications spokesman, David Coleman, before the announcement, according to a person familiar with the matter. “There was no notice, just a heads-up,” the source said.
Privately, TV executives say changes would put at risk up to $200 million of revenue from the gambling companies. Figures from Standard Media Index, which measures advertising agency spend, show TV networks made $180 million from the $300 million spent on gambling ads last year.
The figures are material for companies such as Seven, Nine and Foxtel, which have signed long-term broadcast contracts with the AFL and NRL worth billions. Those companies sign annual packages with the likes of Sportsbet, Ladbrokes and ASX-listed Tabcorp to place marketing around the games.
Under existing laws, gambling ads are banned from five minutes before a live sport starts until 8.30pm. After 8.30pm, the ads can also appear during breaks.
One gambling industry veteran said the amount of money flowing into media and the football codes would be “substantially less” if Mr Dutton’s idea were to become reality.
Other executives were more sanguine about the announcement, describing Mr Dutton’s speech as headline-grabbing rather than a serious policy proposal, coming weeks before the government’s inquiry into online gambling is due to report.
“It’s a simple way to get ahead of Labor on the topic,” one TV executive said, adding that blocking TV ads would shift promotion onto YouTube and social media apps.
The federal government’s parliamentary inquiry into online gambling has become the main venue for the likes of Sportsbet, media and sporting bodies to be consulted on the coming crackdown.
Last month, AFL chief executive Gil McLachlan appeared at the inquiry along with NRL chief executive Andrew Abdo. They suggested the inquiry should look at banning so-called inducement ads, such as cash-back and free-cash offers, particularly on social media.
The inquiry has already led to the government committing to new laws that will ban people from using credit cards through online bookmakers.
(AFR)
Wallabies turn in shocker to open Eddie Jones era - 9th July 2023
The Wallabies have turned in a horror first Test under coach Eddie Jones, falling 43-12 to South Africa to continue their 60-year drought in Pretoria.
The Australians arrived at Loftus Versfeld, where they have never tasted victory, looking to usher in a winning era under Jones in his second stint as Wallabies coach.
But their plans of opening the Rugby Championship with a victory on Saturday were left in tatters with few Wallabies boosting their World Cup stocks.
“We were outplayed everywhere, beaten in every department,” Jones conceded.
“Really disappointing but no excuses. We got a realistic appraisal of where we are as a team.”
Co-captain James Slipper described it as a “tough start”, the veteran prop lamenting his team’s discipline, incurring 11 penalties and two penalty tries, which resulted in hooker Dave Porecki and winger Suliasi Vunivalu being handed yellow cards.
“Discipline, playing at the right end of the field ... it’s a tough start, but we’ve got a long year ahead of us so we’ll keep working hard,” Slipper said.
They started with a bang, as star winger Marika Koroibete barrelled across the line in the seventh minute before the home side piled on 41 unanswered points.
Debutant five-eighth Carter Gordon scored in the final minute, putting his hand up to replace Quade Cooper in the No.10 jersey next week against Argentina.
But the Australians’ defence was in disarray throughout, making more than double the number of tackles compared to the Boks, who won the collisions to control possession and territory.
The Wallabies also looked clueless in attack, with Cooper failing to put his stamp on the game and their opponents under any pressure.
They repeatedly played into South Africa’s hands by kicking away possession while handling errors cruelled many an attacking raid.
They only managed to spend 0.47 seconds in the opposition 22 in three visits compared to the home side’s 15.
Lightning winger Kurt-Lee Arendse bagged a hat-trick for South Africa, exposing Vunivalu who had a shocker in his first Test start.
Arendse scored twice in the opening 40 minutes as his team surged to a 17-5 halftime lead and added a third in the 50th minute.
Reece Hodge’s radar was off target, with the inside centre missing all three first-half attempts including a late 66m effort which fell short and he was replaced by Samu Kerevi early in the second stanza.
A number of Springboks stars missed the match to head to New Zealand to prepare for the All Blacks, but they showed their depth across the park.
Jones rang the changes but his replacements were unable to make an impact on the world champions, who were cheered on by more than 50,000 in the stands.
“There is a game next week (against Argentina in Sydney) and we will be better. It is a bad day at the office and we have to front up and play better than that,” said Jones.
(AAP)
Volkanovski trumps Rodriguez to retain UFC featherweight crown - 9th July 2023
Las Vegas: Alexander Volkanovski reasserted himself as the featherweight champion with a technical knockout over Yair Rodriguez four minutes into the third round at UFC 290.
Rodriguez was the interim champion after Volkanovski temporarily moved up to lightweight, but the Australian left little doubt who the better fighter in running his record to 26-2 in what was scheduled as a five-round bout.
Former US President Donald Trump, who is running for the Republican nomination in 2024, was among those in attendance. He entered the venue shortly before the main card began, walking next to UFC president Dana White and drawing roars from the T-Mobile Arena crowd. Trump shook hands with Las Vegas Raiders NFL star Maxx Crosby, a major UFC fan who sat behind him. Jamal Murray of the NBA champion Denver Nuggets also had a floor seat.
Volkanovski, a heavy favourite, took Rodriguez (16-4) to the mat near the two-minute mark of the first round and kept him there to dictate the pace. That became a theme as the second round played out much the same way, with Volkanovski, 34, also delivering several shots to Rodriguez’s face.
Rodriguez, who is from Mexico, then took the fight to Volkanovski in the third round, preventing the ground and pound with a series of kicks to put him on the defensive. But with a minute left, Volkanovski slammed Rodriguez, 30, to the mat and pounded him with rights and lefts before referee Herb Dean stepped in.
This was Volkanovski’s first fight since a loss by unanimous decision to lightweight champion lightweight Islam Makhachev on February 11.
That ended Volkanovski’s 22-fight winning streak, and after the brief elevation to lightweight, he dropped back down to featherweight for this fight.
Before moving up, Volkanovski had won five titles fights to make a strong argument as the best featherweight of all time. He also has been in the conversation for top current pound-for-pound fighter, and Volkanovski is second in the UFC’s official rankings to Jon Jones.
The Volkanovski-Rodriguez match highlighted the International Fight Week card that included a second championship bout.
Brazil’s Alexandre Pantoja captured the flyweight belt by beating champion Brandon Moreno of Mexico, winning by split decision.
Judges Derek Cleary and Junichiro Kamijo gave the Pantoja the victory at 48-47 in the five-round fight, but Ben Cartlidge saw the bout quite differently with a 49-46 score in favour of Moreno.
Pantoja (26-5) collapsed to the mat after the decision was announced. He has beaten Moreno (21-7-2) in all three meetings.
“I worked so hard,” Pantoja said. “I left everything I had.”
(AP)
‘Green light’: UFC boss grants Aussie ‘freak’ special privilege - 10th July 2023
Alexander Volkanovski has been given a rare “green light” by UFC boss Dana White in a gesture that befits his greatness.
LAS VEGAS — UFC president Dana White says Australia’s Alexander Volkanovski will be given a ‘green light’ to pick whichever fight he wants after beating Yair Rodriguez with an elbow injury so bad it requires immediate surgery.
If defeating one of the UFC’s most dangerous strikers within three rounds at UFC 290 wasn’t impressive enough – or dumping and finishing him on the ground — Volkanovski revealed afterwards it had all been done with a serious arm injury that had seen him “struggle” throughout camp.
His team revealed to Fox Sports Australia that the fighter has a chipped bone in his left elbow so bad he cannot fully straighten the arm.
It also caused nerve complications during the build up.
Yet while the UFC featherweight champ will now undergo surgery, he suggested he would not rule out still chasing that hyped rematch against lightweight king Islam Makhachev in October.
So dominant was Volkanovski in his fifth UFC featherweight title defence, White indicated afterwards ‘The Great’ could now decide himself what comes next.
“Volk looked incredible,” the UFC boss said. “He’s an absolute freak.
“He’s at one of those places in his career now where whatever he wants to do, what are we gunna say?
“He’s proven himself a million times. So whatever he wants to do we go with it, yeah.”
Asked about how quickly he would recover from the injury, the Aussie reminded that he broke his hand when beating Max Holloway on the same International Fight Week show a year ago.
Despite the setback, Volkanovski was still back and ready to go on standby for the annual Abu Dhabi card that October.
“I didn’t mean to scare everyone,” the champ grinned when asked about his surgery revelation.
“It’s not a big deal.
“I’ll be back ASAP.
“It will be a quick and I’ll be back training.
“I broke my hand at International Fight Week last year and you saw me in Abu Dhabi ready to fight (on standby) Islam Makhachev or Charles Oliveira.
“That was a broken bone.
“So I’ll be right.
“You don’t need to stress about that. I’ll be active again, don’t worry about. I have a couple of little things to fix up then I will be kicking ass again.”
Asked later in his press conference again about October Volk said “I’m not ruling it out”.
Speaking with Fox Sports Australia in fight week, Volk suggested a win over Rodriguez would see him chase a rematch with Makhachev.
If that wasn’t possible, he then wanted to challenge for the ‘BMF’ title – which is set to be contested by lightweight stars Dustin Poirier and Justin Gaethje at UFC 291.
But now that White says he can pick?
“We all know I want that lightweight belt,” he said. “I want that Islam fight, want that rematch.
“Not only for me to get that belt, get that win back, but it’s a massive fight for the UFC as well.
“It’s a fight everyone wants to see. It was a close fight, a cracking fight. We showed out. He lived up to the hype, I lived up to the hype and the fight lived up to the hype.”
White agreed, praising not only Volkanovski but an entire team that includes UFC middleweight champ Israel Adesanya and fellow Kiwi Dan Hooker, who upset Jalin Turner this same night with broken wrist.
“Look at Israel Adesanya, he’s ready to fight anybody, anywhere, anytime,” White said.
“Volkanovski is willing to fight anybody, too.
“When you look at Volk, the size, the reach, he doesn’t care. He gets in there and handles his business.
“Hooker also breaks his wrist in the second round (tonight). I didn’t even know. That whole team is bad ass.”
(FOX Sports)
