Bookmakers hit out over funding plan for grassroots sport.

Byline: Graham Green

BOOKMAKERS have described as ill-conceived a government proposal aimed at creating a fund through which millions of pounds would go to Sport England for reinvestment in grassroots sport as part of a new voluntary code.

Sports minister Gerry Sutcliffe has asked Sport England chairman Richard Lewis to oversee the speedy implementation of the plan, which was sprung on betting firms without consultation.

In a letter to representatives of the industry and major sports bodies - extracts of which were published in yesterday's Guardian newspaper - Sutcliffe attempts to heal divisions between the two sides by suggesting the fund would offer "an opportunity for all parties to show goodwill".

However, Association of British Bookmakers chief executive Patrick Nixon told the Racing Post: "As far as we're concerned, there is no relationship between grassroots sports and betting, and no good intellectual basis on which to suggest such a relationship exists."

Sutcliffe has called on bookmakers "to move relatively quickly to an agreement", and the letter said contributions must be "serious and significant". It is understood figures of between pounds 5m and pounds 10m have been mentioned.

Betfair last year led discussions about a voluntary fund, but talks broke down. Bookmakers have argued that unless the fund is linked to an end to the campaign among sports bodies for a statutory right to a percentage of revenues, there would be no point in a voluntary agreement.

Both the Remote Gambling Association, which represents the majority of operators betting online, and the ABB have responded with letters questioning the government's stance.

Nixon added: "Our position is that it [the letter] came as a bit of a surprise, because there had been no consultation with the betting industry per se.

"There may have been discussions with individual companies, but no discussion with the betting industry at all.

"Obviously, the bookmakers pay horserace betting levies, and they pay a voluntary greyhound levy, because these are clearly sports with which they are closely associated.

"They also have a commercial relationship with the soccer authorities for betting on football, but betting on sports other than that are really very minor parts of any bookmaker's business, and no part for some.

"The ABB has written to the sports minister in response to the letter and we expressed some surprise that we hadn't been consulted on the subject and said we didn't see that there was any imminent prospect of this happening as there had been no discussion on it, but we haven't yet had any reply.

"We made the point that grassroots sport is funded through a combination of the big Lottery fund, although that's of course going to have to divert money to the Olympics, and also to Sport England.

"But even with that diversion, grassroots sports funding will get in excess of pounds 400m over the next four years, so the case isn't made that there is a requirement here, nor is the case made that there is any intellectual link between betting and grassroots sports funding in general."

The great racing levy debate, pages 18-19 The dispute over a sports betting levy In June 2008, British bookmakers played down fears that a ruling in a French court could herald the introduction of a sports betting levy. Two internet betting companies Unibet and Expekt, were ordered to stop taking bets in France on the French Open tennis and pay the French Tennis Federation damages.

In November that year the England and Wales Cricket Board called for discussions over a levy on gambling to benefit grassroots sport, while Football Association chairman Lord Triesman told a parliamentary hearing: "I see no reason why the gambling industry should be able to make use of the football industry to make money but make no contribution of that revenue to football." In March it was reported that the Sports Rights Owners Coalition (SROC), a grouping that includes the FA, Premier League, Uefa, ECB and BHA, and of which BHA chief executive Nic Coward is chairman, was lobbying for a Europe-wide one per cent turnover levy on all sports bets.

In June, the government established an expert panel to examine the threat of corruption in sports betting, which bookmakers fear could be used to bring in a levy to fund policing integrity.

This month, the Association of British Bookmakers called for an "an evidence-based discussion about issues like integrity in sports betting", but added: "We have now had enough of the nonsense spouted by organisations like the Sports Rights Owners' Coalition and the Central Council for Physical Recreation, who have taken a disingenuous lobbying position to try to persuade the DCMS to lever further money out of our industry."