(The Malaysian Insider) He also told gaming industry analysts that Pakatan Rakyat (PR) was to blame for the Najib administration’s backtracking, and alleged that illegal bookmakers had spent between RM100 million and RM300 million to smear his attempt to introduce above-board football betting.Illegal bookmaking activities in Malaysia are estimated to be worth up to RM20 billion a year.
Tan (picture) said this at a luncheon with about 40 gaming analysts, where he was also said to have shown them a Finance Ministry letter dated Jan 13, 2010 that gave him conditional approval for the licence.
However, sources who saw the letter said the conditions made no mention of the government having to first gauge public support and that they had essentially been fulfilled.
A Berjaya Corp press statement released earlier today said the company was extremely disappointed at the government’s decision not to re-issue the licence “despite having granted its approval for the re-issuance of the same” — a phrase which was underlined for emphasis.
Berjaya Corp reported that the government had last month re-issued the licence to Tan-owned Ascot Sports Sdn Bhd after the original licence was cancelled by the previous Abdullah administration.
The gaming, property and hospitality group had told Bursa Malaysia in a May 12 filing that it intended to acquire Tan’s 70 per cent stake in Ascot for RM525 million. The tycoon’s son — Datuk Robin Tan Yeong Ching — would have retained control of his 30 per cent stake.
Tan had first obtained the licence in 1987 but had “asked the government to take it back” when the venture was unsuccessful while retaining the right to get the licence back.
His most recent attempt to revive long-suffering Ascot — which posted a loss of RM4.6 million at the end of 2008 — ran into a concerted hail of criticism from opposition parties who managed to turn the issue into a national talking point on the back of apparent anti-gambling sentiment.
Tan-controlled Berjaya Corp had planned to offer football betting services through the telephone and at selected Toto outlets nationwide.
It is understood that the tycoon had spent a considerable sum in preparation for the start of play in European football leagues this August.
The licence itself is said to be worth RM10 million, an amount which was refunded to Tan following the government’s capitulation to public opinion on Friday.
Sources said Tan had used the money to obtain a bank guarantee worth the same amount as a first-right-of-refusal claim, and suggest that he is biding his time until conditions are more agreeable before attempting to launch the football betting service again.
It was also revealed during the get-together with analysts today that after Ascot’s licence was withdrawn in 1990, RM8 million in licence fees was refunded to the company by the Finance Ministry and that it was also given compensation of RM10.9 million for sports betting equipment by the Totalisator Board.
Tan’s meeting with gaming analysts from both buy and sell sides this afternoon is seen as a move to repair his company’s image after Berjaya Corp shares were battered today at the start of trading.
Trade was resumed at 10am after a one-hour suspension on trading following Berjaya Corp’s announcement that it was calling off plans to acquire Ascot.
As at 4pm Berjaya Corp’s share price was down 14 sen from its opening price to RM1.22.
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