In a situation like this, especially in a gym where the ceiling is too high to bounce any light, you can't do much better. If you dislike the dark backgrounds, try to shoot the people near a wall or some place that won't go so dark. The other alternative is to go to a higher ISO which can create noise in digital cameras, or to use a slower shutter speed. I usually try to use the slowest shutter speed possible with the flash but very often I would need to shoot at 1/15 sec or slower for the ambient light to look good. This causes the risk of camera blurr if you're handholding, and the subject can also move causing a blurr. If you use a monopod, you can probably get away with 1/15 or 1/8 shutter, but just make sure you press the shutter when everyone is still. The success rate is not that high when you shoot a large number of people at slow sync, so if you can move them over by a wall, that would probably be the easier solution. By the way, that photo you posted isn't as bad as you think considering the situation. I would have just moved around so that the maple leaf boy wouldn't look so obstructive in the picture. If you just had him turn to his side, that might've done the trick.