Some clubs could opt out of the new deal
A newly inked 10-year deal between James Packer’s Crown Resorts and New South Wales Clubs’ CrownBet online system is garnering new criticism because a Crown board member facilitated the deal through a separate company.
According to the Sydney Morning Herald, Andrew Demetriou, former head of the Australian Football Club, ran the tender process on behalf of ClubsNSW through his sports and marketing company Beyond Boundaries Group. Demetriou is a board member of both CrownBet and Crown, which owns 62 per cent of CrownBet.
ClubsNSW told the Herald the firm is “aware of a potential conflict of interest in relation to Andrew Demetriou. We sought and received the necessary undertakings to manage the conflict. Andrew Demetriou was not involved in the process.”
In a statement, Beyond Boundaries CEO Ben Buckley agreed that “strict processes” were observed as the deal was closed. “At all times any potential conflicts were divulged in advance to ClubsNSW and tabled for discussion and approval by their board. ClubsNSW sought the technical expertise provided by Beyond Boundaries Group and in consultation with the two parties agreed on strict processes that were put in place to manage any potential conflicts,” he said.
The deal, perceived as a threat to industry leader Tabcorp, offers loyalty points to Clubs members who use the CrownBet online system. The accumulated points can then be traded for perks like free dining at Crown Resorts properties. Clubs will earn commissions on bets made by their members on the digital service. Members will be able to use a CrownBet app to place bets in venues.
Charles Livingstone of the Alliance for Gambling Reform has called the partnership “cynical opportunism at its worst” and a way to further prey on problem gamblers.
Gaming opponents aren’t the only ones upset by the deal. Kelly Signell, CEO of Betting.club, which is owned by three large NSW clubs, said some clubs could opt out of the deal altogether. “We are disappointed in the outcome,” she said. “Clubs across NSW and Australia have a choice of who they partner with. Call me biased, but I think we’re the right choice.”
