Ascot Sports Sdn Bhd was given preference to run sports betting in the country because it had experience in the business, the Finance Ministry (MoF) said yesterday.
“The government had not yet issued any licences for sports betting in the 2010 Fifa World Cup and hence the issue of estimated total number or value of transactions does not arise,” said Senator Datuk Awang Adek Hussin in the Dewan Rakyat.
“Nevertheless, the government had offered to reissue a licence to Ascot Sports Sdn Bhd (Ascot) to conduct sports betting (including for the 2010 Fifa World Cup) because this company had been given approval for betting activities previously,” he added.
As such, said Awang Adek, when the government was considering giving a licence for sports betting, Ascot was given preference due to its experience in the field.
The deputy finance minister was responding to a question by Datuk Mahfuz Omar (Pokok Sena-PAS) on the terms and conditions imposed on Ascot for conducting a sports betting business.
Mahfuz also asked the government to state the estimated number of transactions which will take place during the 2010 Fifa World Cup and the effects of legalising sports betting.
Awang Adek said 15 conditions would be imposed on Ascot if it were given a sports betting licence:
1. The sports betting licence is renewable annually by the Finance Ministry if there are no major infringements of the licensing rules;
2. Finance Ministry reserves the right to alter or add terms to the requirements and withdraw the sports betting licence;
3. Ascot must give a security deposit of RM10 million to the Treasury;
4. Ascot must pay a sum of RM10 million per year for renewing the sports betting licence;
5. Ascot must ensure that Malaysians under the age of 21 and Muslims are not allowed to place over-the-counter bets or via telephone;
6. Ascot’s Muslim employees are not permitted to work at the sports betting premises;
7. There should be no Muslims on the Ascot board of directors;
8. Any changes to Ascot’s board of directors will require approval from the Finance Ministry;
9. Ascot is not permitted to conduct any sports betting transactions via the internet;
10. Ascot is not allowed to open any new premises. Existing gaming companies, namely Sports Toto, Magnum, Pan Malaysian Pools, Diriwan, Sandakan Turf Club and Sarawak Turf and Equestrian Club can be appointed by Ascot to conduct sports betting;
11. Ascot is only allowed to receive bets on sports conducted outside of Malaysia;
12. Ascot is only permitted to receive bets on sports only and not horse racing;
13. Ascot is subjected to existing gaming tax and any other tax which may be imposed by the Treasury;
14. Ascot must allow Treasury officials to inspect any records or
15. Any other conditions which will be determined by the Treasury from time to time.
According to Awang Adek, the government is aware of the hazards of illegal betting and the income leakage to the government.
“The government also faces an outflow of money from the country due to illegal sports betting,” he said.
This article appeared in The Edge Financial Daily, July 8, 2010.
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