Total Betting $$$

http://www.harnesslink.com/www/Article.cgi?ID=98213

Been some discussion on this in the past on this forum.

What this tells me is

a) It's good it isn't going down, total wise.

b) Peope have noticed lowering on the Tote pools and suggested total betting has gone down. However it is evident the decrease in tote pools is being bet elsewhere.

c) A 1.8% rise isn't a boom. This doesn't even match inflation. So while yes the total has gone up, if you put figures as a % of what people are spending it has gone down.

Just thought that was interesting seeing the topic of total betting $$$ has come up a few times.

Interesting

World's biggest punter moves stops betting on Australia
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The Advertiser
June 08, 2012
11:30PM


Zeljko Ranogajec, Australia's biggest punter, has stopped betting $1 billion a year through he TAB system. Picture: Craig Greenhill
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THE golden glow from the visits of Black Caviar was yet to fade before news broke that the South Australian racing industry had taken its single biggest financial hit in history.
The state's three racing codes are slowly coming to terms with the devastating loss of turnover from the world's biggest punter.

Tasmanian-born Zeljko Ranogajec has moved overseas and ceased betting $1 billion a year through the Australian TAB system.

The man nicknamed the Loch Ness Monster due his rare public sightings was betting over $70 million a year through the SA TAB.

That money was generating around $4 million in revenue per annum for the three codes.

The SA TAB - initially bought by UNiTAB in Queensland and now owned by Tatts Group in Melbourne - is the major funding source for racing in SA.

TAB funding models for the racing industry are different in every state but it is likely the SA codes have been hardest hit by "The Zeljko Factor".

The local thoroughbred, harness and greyhound codes have taken an immediate hit in revenue of around 10 per cent.

The loss could be ongoing as Ranogajec might never return to betting in Australia due to a dispute over a massive tax bill from the Australian Tax Office. News of the loss of funding has been slow to disseminate to participants. Bad news usually travels fast - and is spread by those not directly affected. In this case, everyone involved in racing is affected. The question is to what degree.

THOROUGHBRED RACING

JIM Watters, chief executive of Thoroughbred Racing SA, held senior roles in racing administration in his home country of New Zealand before crossing to Australia just over three years ago.

Watters is not downplaying the significant loss of revenue to his sport and has indicated "prizemoney stagnation" is a possible consequence.

"We're in the middle of doing our budgets for 2012-13 and we've changed them as a consequence of our revenues being down," Watters said.

"If this had occurred before race list fees were introduced it would have been catastrophic. Now the impact is that it will limit what we were looking to do in terms of prizemoney increases."

Watters said maintaining the status quo would be a desirable achievement.

"Bottom line is we need to work our budgets," he said.

"We've advised our shareholders (SAARC and SAJC) and we're working out how the industry doesn't go backwards."

HARNESS RACING

JOHN Lewis is a former general manager of the Australian Hotels Association who became chief executive of Harness Racing SA 18 months ago.

Lewis is loathe to mention specifics about the impact on his sport but has confirmed it will probably be "hardest hit" of the three codes.

"We had been monitoring the situation for some time but it was all very immediate once it happened," Lewis said. "There aren't too many businesses that could lose it's biggest customer and not feel it severely.

"But I don't want to panic anyone in our industry because we have a number of positives happening."

Lewis says the re-development of Globe Derby Park is the sport's biggest good news story, while the proposed introduction of innovative race events will hopefully reinvent the sport.

Recently released program dates by HRSA indicate that Tuesday night meetings at Globe Derby will be cut from September.

The situation will be reviewed again in three months.

Lewis says that decision is not directly linked to the loss of the Zeljko money, however industry insiders say it is the first inevitable consequence of a significant revenue hit.

GREYHOUND RACING

IT was 5.15pm on the Friday of a particularly bad week and Matt Corby was looking to head home, grab a beer and watch the footy.

Just then an e-mail popped up.

"It was the news that Zeljko was leaving the system," Corby, chief executive of Greyhound Racing SA, said.

"I really wished I'd waited to read it on Monday."

GRSA was the first code to jump on the front foot and advise it's participants that its biggest punter had upped and left.

They chose an industry newsletter to convey the bad news, although the full consequences are yet to be revealed. "We want to talk openly about things," said Corby, who joined GRSA from the Sandown club in Melbourne 20 months ago. "We believe we will be the least hit of the three codes but no one is jumping for joy.

"We were starting to travel quite nicely and this is a big bump in the road. We will all have to make some tough choices," Corby said.

Just a thought but the true state of turnover will not be known until the Racefields Legislation is taken into account. From where I sit, the 1.8% increase is purely the Tab's result against the increase in the Corporates. The best thing is the decline in turnover has been turned around and future planning can be more positive now that has happened. We have no idea what, say Tom Waterhouse's turnover is for example.

Quote:

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Originally Posted by p plater

Just a thought but the true state of turnover will not be known until the Racefields Legislation is taken into account. From where I sit, the 1.8% increase is purely the Tab's result against the increase in the Corporates. The best thing is the decline in turnover has been turned around and future planning can be more positive now that has happened. We have no idea what, say Tom Waterhouse's turnover is for example.

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Yes I was going too mention that but corporates were still around 5 years ago so shouldn't affect the 1.8% too much...although yes they would have grown and that would impact data.
The next thing is working out the reasons why over the last 5 years everything has been A-ok despite all the doom and gloom predictions from the advent of sports betting and the supposed decline of interest in harness. Whatever it is we need to keep doing it....

Whilst it maybe on a harness racing site doesn't the article refer to a 1.8% overall increase in turnover on all betting forms? I'd like to see a breakdown of the figures on harness racing before I share your optimism as no doubt those sports that are contributing to turnover are going to sek their share of the revenue as well

It's very interesting reading Breno. Thanks for highlighting it.
The Chicken Little "the sky is falling" routine has been pulled on by various TAB minions strategically located throughout the Industry over the last few years & this has been based solely upon win/place Tote Turnover alone, but all along they have (I suspect quite intentionally) first failed to take into account the impact of Corporates & more recently they've once again failed to take into account or for their own purposes just conveniently overlooked the impact of their own Fix Odds wagering on Win & Place Pools.
The fact is the same to slightly more $ is being wagered now as was wagered a few years ago...just that it is spread across/through different avenues & platforms & it is wagered in accordingly different ways.
This of course directly challeges the credibility of recent claims of 'wagering decline' as being THE motivating factor behind TAB moves to significantly shorten the distance of our races and to have us go around in Dishlicker colours. Smoke & Mirrors. Slight of Hand. Bullshit.

Quote:

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Originally Posted by dizzy

Whilst it maybe on a harness racing site doesn't the article refer to a 1.8% overall increase in turnover on all betting forms? I'd like to see a breakdown of the figures on harness racing before I share your optimism as no doubt those sports that are contributing to turnover are going to sek their share of the revenue as well

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Ahh yeah gee I think you're correct. I'll go bang my head on a brick wall 10 times for that oversight.

Don't be too hard on yourself breno, I'm sure we'd all like to read into it $25billion annual turnover on harness racing