Horseracing’s reliance on the crutch provided by external income streams such as the growing phenomenon of sports betting, was illustrated in a joint media release by Phumelela Gaming & Leisure and the Racing Association earlier this week. The contribution of TAB betting on sport, notably soccer, to the stakes pot for 2012-13 has increased a remarkable 45% to R13.1 million. This is R4.1 million more than in 2011-12.
Soccer Mad
Betting on sports like soccer, rugby and cricket is the fastest growing form of gambling globally and Phumelela is represented in the sports betting market through various channels, notably a range of tote bets on soccer and rugby and its subsidiary company Betting World, a corporate fixed-odds operator.
Soccer 6 was launched in 2003 and has proved very popular with both soccer fans and horseplayers with an interest in soccer.
Soccer 6 is similar to the Pick 6. The results of 6 matches must be predicted and there are 3 options per match.
More than 10 soccer pools are operated weekly and since the bet’s introduction four other tote bets on soccer have been launched – Soccer 4, Soccer 10, Soccer 13 and Soccer 1.
In 2011 TAB ventured into tote betting on rugby with the introduction of Rugby 5, in which the results of five matches must be predicted with five result options to choose from in each match. Another rugby bet, Rugby 1,was launched in September 2012.
Other Channels
Other streams also show increases of note. There have been significant increases in the contributions flowing from royalties from Gold Circle and international jurisdictions (up 26% to R18 million), Phumelela subsidiary Betting World (up 41%) and limited payout machines (up 35%).
Phumelela’s Isle of Man tote operation contributed to prize money for the first time with R2.4 million being yielded from that source.
The massive R118 million contribution from TAB or tote betting on local and international races was only slightly up on the previous season, while the contribution from bookmakers increased 9% to R13 million.
The table below shows the full breakdown of the various revenue sources for the 2012-13 stakes.
It also shows items that Joe Average punter has probably never considered.
That his spend goes towards the contribution of over R12 000 000 to Jockey Riding Fees and a contribution of R3 745 000 to the SA Jockey Academy.
This is tangible ammunition that the industry needs to lift its game when it comes to managing and servicing its customers with world-class communication and facilities out of the top drawer.
Is that the way customers are treated?
Stakes Calculation 2013 |
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| Product | 2012/2013 | 2011/2012 |
| Tote- Local | R87 818 239 | R86 230 000 |
| – International | R30 404 829 | R31 120 000 |
| Sports | R13 162 993 | |
| Bookmakers | R13 243 056 | R12 130 000 |
| Unclaimed Dividends | R7 964 400 | R7 700 000 |
| & Fractions | ||
| Lotto Income | R27 222 | |
| Limited Payout Machines | R2 160 247 | R1 600 000 |
| GC & International Royalties | R17 946 488 | R14 250 000 |
| IOM Tote Limited Income | R2 381 762 | |
| Fixed Odds (Bettingworld) | R2 648 077 | R1 880 000 |
| Trust Dividend | R14 788 730 | R14 800 000 |
| Total | R192 546 043 | |
| Less – Riding Fees | R12 668 024 | R11 000 000 |
| Trainer Subsidies | R697 694 | R560 000 |
| Jockey Academy | R3 745 510 | R3 300 000 |
| Excess Payment Previous Year | R1 051 596 | |
| Available For Stakes | R174 383 220 | R163 950 000 |
