Information on BETWORKS

[PatrickMcIrish]

Talked to Brian and want to relay on some of the coversation. The most important thing is all monies are safe. Regardless of what comes down the line there is no question the money will be returned to the players. In fact he had told me the Gaming Commissioner has been there all morning yesterday and left satisfied that every post up dollar and all winnings were accounted for. You find yourself behind bars in a regulated environment like this if you dip into what is not yours.

They will try and make a statement in the next 24 hours or so, these people at company level were as surprised as we are. Don't quote me on all this but from what I understood they are being bought out. BetWorks is owned by a larger corporation and they want to divest themselves of this part. There is still hope of another Australian book coming into play here. If that happens each player will have a choice on whether or not he wants to continue with the new book or wants his money returned. If no deal is struck and BetWorks as we know it discontinues operation all monies will be returned. Of course when someone has our money it can't happen quick enough for us but I am satisfied that BetWorks will do what is necessary to return our money if it comes down to that. I will say it did not sound to me as though this all is going to go down as quickly as I would hope. Easy to say and hard to do but try and be patient if you can people. Wish I had a better answer than that for you.

In closing this was a sad day for them over there too. They believed this regulatory stuff is the way to go these days and a lot of other folks think that as well. In an ironic way playing at a shop where you were "protected" is going to be the ultimate test. I think they will pass just fine. Stay tuned for more updates here.

 

[Fishhead]

Big relief for all Betworks customers.

Thanks McIrish

 

[TheGeneral+]

We can sleep easier. It would be shocking for a book of Betworks status to go under and not pay. Thanks for the info.

 

[lakerfan]

Good info. Glad someone got an update.

 

[Dante]

thanks Pat for the update for the forum

 

[truthteller]

Thanks for the update Pat. If Betworks had stolen my money, that would have been the last for me offshore.

That's why I play in a regulated environment, for things like these. If or when they reopen I will stay with them.

 

[snowtime]

not happy with the transistional results by betworks that they were going be more of a horsebook than a sportsbook,so I may going to withdraw all of my monies in that account if that happens. Note: see my post on the e-mail from Betworks.

 

[TTinCO]

If Betworks would have stolen a dime from the players, a LOT of people would have lost an incredible amount of faith in the entire industry.

Not that it was ever an issue, but abrupt changes like this do tend to scare people.

 

[PatrickMcIrish]

No problem guys, will try and keep updated on this as much as possible.

 

[Betworks]

I understand that there is a lot of concern and apprehension out there is respect of the sudden closure of Betworks and the cessation of accepting wagers. The purpose of this post is to provide some background to the change of business, the processes in respect of what is happening in the future and most importantly give some assurances in respect of the critical issue of the return of customer balances.

I am not willing to engage in any debate about the merits of the process. What was done was done because it was the only thing that could be done in the circumstances.

Please be aware that the dedicated and loyal staff of Betworks were not party to the negotiations or arrangements in respect of the closure of the sports book. All of these guys have now lost their jobs. When I was advised that the new owners wished to close the sports book, and Euraust was not going to fund the book any more, the only reasonable and appropriate action was to cease accepting wagers immediately – not in two days, not after the weekend's football, it had to be immediately. To do anything else would have been irresponsible and not in the best interests of player funds.

The parent company, Euraust Ltd had been getting anxious regarding the trading results of Betworks. Euraust were looking to either sell the business or close it down. In the end they found a buyer that closed it down anyway.

The buyer entered into an agreement to acquire the company so they can acquire the sports betting licence granted to the company. Therefore from both the sellers and the buyers perspective, neither party will do anything that will jeopardize the licence. The refusal or failure to pay players what they are entitled to, would clearly put the licence in jeopardy, therefore it is just not going to happen.

In respect of the very important issue relating to the protection of player funds. Betworks is required to maintain customer funds in trust bank accounts. We are required to demonstrate compliance on a monthly basis with this important safeguard. On 28 October 2003, inspectors of the ACT Gambling and Racing Commission visited the offices of Betworks. During the inspection, the government officials sought and received evidence that Betworks holds sufficient funds in the client trust accounts to cover the balance of funds held on behalf of clients.

Betworks provided evidence in the form of bank statements, demonstrating that our trust accounts hold sufficient funds to cover the total of customer funds held on deposit.

Betworks has negotiated a deal with Canbet Sports Bookmakers UK Ltd to take over the customer accounts and balances. This is entirely an opt-in arrangement. Customers who do not wish to have their balances transferred are able to notify Betworks and arrangements will be put in place to remit funds back to customers.

Customers will have approximately 5 days in which to notify Betworks if they do not wish to have their accounts transferred to Canbet.

If customers do not wish to have their accounts transferred, they are asked to provide bank account details, with as much information as possible, to facilitate the return of customer funds.

An email updating the situation will be forwarded to customers in the next 24 hours.

For the entire life of Betworks, we have pushed the messages of safety and security. We talked the talk, now we will show you that we can walk the walk.

Players will get their money; there is no doubt about that. Given we may have to arrange the transfer of funds for up to 1,000 customers, it may take some time.

As I stated at the beginning, the concern and apprehension of customers is totally understood. We also need to be able to efficiently and effectively arrange for the return of funds to players. Each time we are required to respond to emails and telephone calls from customer’s only delays that process.

In conclusion I have to re-iterate the reasons why your money is safe.

Firstly, neither the buying company or the selling company party will stiff players because that would cause the regulator to take action against the licence.

Secondly, Betworks has proven that we have the money in our accounts to cover player funds.

Thirdly, your account can be transferred to Canbet and for those who do not want that option, arrangements are being made to remit funds directly to customers.



Brian Gordon
Managing Director

 

Amazing things happened during couple last days in Australia.

Centrebet sold to Sportodds, instead going with Tabcorp and Jupiters. Now Betworks closes...

It seems like Euraust Ltd owners doesn't understand betting business at all. I am not an expert either, but

-Betworks has been in this business a very short time (as a name Betworks). It takes some time to get big customer base.

-Betting Industry is not a same as Gambling Industry. Profits are much more smaller, but it's possible to make nice profit, but what is enough?

At some point I would like to get a job in this industry, but if investors act like this, it might be impossible.

 

[TheGeneral+]

Thanks for the message Betworks.

Good luck to all of you

 

[PatrickMcIrish]

Thanks Brian for the update. If you land on your feet somewhere in this business please let us know. Good luck to you and the others.