A bookmaker that has used three sporting charities in its advertising for more than a year has defended its failure to pay anything to those charities during that time. Bet4Causes, an affiliate of Myclubbetting, claimed on its website and in print adverts published last year that 20% of its profits would be divided among World Horse Welfare, the Greatwood home for retired racehorses and Street Games, which brings sport to disadvantaged communities.
All three charities told the Guardian this week they had received no money from Bet4Causes, despite an association that began in February last year. “We’ve been chasing up about it this week because we haven’t received a penny,” said Helen Yeadon, a co-founder of Greatwood.
When this was put to Stephen Wundke, the chief executive of Myclubbetting, he replied: “There’s a good reason for that. None of their customers have lost yet!” He explained that payments had always been conditional on a net monthly profit being made and added that the expectation had been that the charities would do more to drum up business for Bet4Causes. He blamed a departed staff member for failing to explain this to the charities.
While Bet4Causes had been set up with “good intentions”, Wundke said: “The idea was that the charities would promote the site and their supporters would sign up. But of course they haven’t done that.” He said that software showed the Bet4Causes page had had only two views this year.
According to Wundke, those who had signed up to Bet4Causes had proved to be sharper than average punters and included a large number of “bonus abusers”. “We’re aggressive in our recruiting of people [punters]. I make significant offers in an effort to recruit and sometimes it costs us but that’s my model. In time, we won’t be as generous as we are now.
“In January, the Bet4Causes people collectively won £805. In February, they won £3,873. In March, they won £2,048. In April, they won £31,264. I’d rather they didn’t win but that’s what happens and I make very generous football offers.”
Wundke accepted that the April loss shows, at least, a quantity of turnover worth something to a new betting business but insisted it had been generated by the efforts of his company rather than the charities themselves. He therefore did not agree that a payment to the charities was required at this stage.
“I think quite the opposite. At the moment, we’re investing heavily in them. Hopefully, we’ll get to a point where we can turn those customers into loss-making customers. Unless [the charities] tell us they don’t want to be a part of it any more. But it’s costing them nothing and it’s something that gives them the chance of a legacy income, not just now but for the next 20 years.
“Each of those charities have what’s called an affiliate login, so, in real time, they can see how the customers are doing in relation to winning and losing. So it’s completely transparent. Whether those people still have the logins, I don’t know. I only took over in January and this was all set up last year some time.”
The Bet4Causes webpage, carrying the strapline ‘Giving back to sport’, was taken down on Thursday following the Guardian’s enquiries. This week, the webpage named the trainer Emma Lavelle and the jockey-turned-broadcaster Mick Fitzgerald as brand ambassadors. Lavelle said her association with Bet4Causes ended a year ago, while Fitzgerald said he had no recollection of doing anything with Bet4Causes.
The Guardian understands that Bet4Causes will now consider an ex-gratia payment to the three charities, while maintaining that nothing is formally owed.
Wundke said that the wider business of Myclubbetting was doing well and on course for a stock market flotation, following a reverse takeover of Papillon Holdings, an investment company. Myclubbetting promises to share profits with sports clubs who sign up and persuade their members or supporters to bet through the site.
Wundke said: “I’m projecting that, one year from now, we’ll have given £320,000 to clubs, which would make us the second-biggest funder of grassroots sport in this country, behind the lottery. But a lot of things have to go right between now and then to make that happen. I’ve got to do a lot of things right.
“Our cost of acquisition of each customer is significantly lower than most bookmakers, because of the club network. It would be about a fifth of what it costs them. So we’ve got a bit of an edge there.”
Myclubbetting’s founder is Neil Riches, who was also founder of a software business called Worldlink that went into liquidation in 2012 with debts of £4m. When Riches’ history with Worldlink was published in the Sun in August, it prompted the then England manager, Sam Allardyce, to quit his position as brand ambassador to Myclubbetting.
But Wundke insists that Worldlink investors should still have hope. “My understanding is that all the investors in Worldlink have been given shares in Myclubbetting, so they’re still alive and they’ve got a great chance, going forward.” He said litigation was continuing in the US over enforcement of patents held by Worldlink.
Meanwhile, Thursday’s key Derby trial, the Dante Stakes at York, could be run on soft ground for the first time in a decade, with racegoers at risk of a soaking as York’s three-day meeting gets under way on Wednesday. Somewhere between 8mm and 10mm of rain is forecast, with course officials hoping it doesn’t fall during racing, which could worsen churning of the surface.
The stop-start career of Annie Power has come to its final stop with the news that Willlie Mullins has decided to retire her after consultation with her owner, Rich Ricci. The winner of 15 of her 17 starts, she will be remembered as a brilliant Champion Hurdle winner from last year’s Festival but also for saving bookmakers an estimated £50m when falling at the final flight at the previous year’s Festival. She is in foal to Camelot.
Wednesday’s tips
York 2.20 Repercussion (nap) 2.55 George Bowen 3.30 Brando 4.05 Shutter Speed 4.35 Starlight Romance 5.05 The Right Choice 5.35 Richie McCaw
Yarmouth 1.40 Deciding Vote 2.10 Sean O’Casey 2.45 Young Tom 3.20 Fashaak 3.50 Athollblair Boy 4.25 Robin’s Purse 4.55 Swilly Sunset 5.25 Frank’s Legacy
Worcester 2.00 Definitly Grey 2.30 The Way You Dance 3.05 You’re A Lady 3.40 Theatre Rouge 4.15 Follow The Bear 4.45 Muffins For Tea (nb) 5.15 Broken Quest
Bath 5.20 Fethiye Boy 5.55 Park Paddocks 6.25 Attain 6.55 Star Of Lombardy 7.25 Sabato 7.55 Go Amber Go 8.25 Viola Park
Perth 6.05 Just Before Dawn 6.35 Clan Chief 7.05 A Montmartre 7.35 Resolute Reformer 8.05 Bhakti 8.35 Jester Jet 9.05 Creevytennant
