Small Screen. Tellytrack is South Africa’s racing channel
Racing television channel TellyTrack has upped its service fee in a move that may have far reaching consequences for bookmakers and bookmaking outlets.
Gold Circle have reported that as from October 1 bookmakers will be required to pay a monthly service fee of 3% of the gross betting turnover on horseracing from each of their outlets.
TellyTrack is South Africa’s only audio and visual horseracing coverage service.
This percentage is in line with the percentage of gross betting turnover paid by Phumelela, Gold Circle and Kenilworth Racing to the providers of international racing for display on TellyTrack. At its inception in 2000, TellyTrack was run on a non-profit basis and the cost of production was divided between the number of commercial users, such as bookmaker and tote agency outlets, that used it.
The picture at that time was exclusive to the racing operators Phumelela and Gold Circle so it’s usage in betting outlets encouraged foot traffic. However, in 2006 TellyTrack became part of the DSTV subscription channel bouquet so punters could then watch it from the comfort of their homes.
However, the fees for commercial users have risen over time in line with inflation.
Sean Coleman of the KZN Bookmakers Society said that the new fee structure had taken on a new methodology and would have far reaching effects on the bookmaking industry. He also believed it would affect tote agencies.
According to the latest financial statement, South African bookmakers were operating on a profit of 11,3% of gross turnover, so Coleman said that the implications of having to pay 3% of that gross turnover to TellyTrack were obvious.
He added that tote agencies would also be affected as they were entitled to 4% of the gross turnover of the outlet and would now have to contribute 3% of that to TellyTrack.
www.goldcircle.co.za
