Gidday punters.
Look you already know the chances are that you are about to lose, if not doing so already, right!
But if you don’t mind, can you lose a little more, a little faster, and whilst you are at it, don’t worry about such pesky things as price, it’s just that we want you to pay a little more when you do and get a little less in return when you actually land one.
We’ve got this bottom-line thing though, and it looks a little more dotted and fragile at the moment, we knew it was sort of coming, but those recent salad days were scrumptious, a little more mushy right now to be fair, and we really need your help.
Look, as our loyal fan we are doing all we can to put on all these races on for you in supposedly convenient times – “growth timeslots” we might say in corporate babble – so the very least you can do keep being involved. You know later in the day, the twilight, the evenings when you haven’t got much else to do with the family or the footy.
It was so very good of you to stay home during the COVID pandemic days and turn into a Watson and bet away whilst obviously getting a few mates along the way because it really helped our “future funds” and didn’t we give them a lash.
By the way did we ever say thanks that we are able to announce those fabulous prizemoney increases of some 85% over the last decade - mainly because of you.
You know that line we have used as a mantra: “there has never been a better time to race a horse in Australia.” So well done.
Not that you can probably afford one, but we couldn’t have been able to do it without you. You are the best.
We know for you it is just a recreation, right? The thrill of the chase - as you toss off rent worries and how to pay for the kid’s new school shoes and put a little dinner on the table.
Those television adds, a little tacky we know, treating you like almost Neanderthals and perennial losers, and there is some chance they will get a haircut shortly anyway as our friends in government step in, you know the ones that got our wagering partners to finally, begrudgingly admit they did indeed – at times, only a few times – cut back punters, only those one who used “privileged information” to manipulate markets mind you. How dare they.
But you are ok of course because you are still betting and when that moral you had the $50 on misses out, you get it back to play again if it runs second, third or fourth. And we won’t start on market manipulation by using those bonus bets, but use them quickly, they might not be about for much longer.
Anyway, not sure if you saw that news last week, probably you were at The Bool on Tuesday, when we released (sorry snuck it out).
It was that little matter of a Point Of Consumption tax (POCT between us). No, nothing to do with having a beer at home, just something along the lines that if you are having a bet at Stawell today whilst doing so, you pay a 10% tax to the Victorian government, but the good news is half of that comes back to racing.
Oh, the bad news is that from July next year, we are going to increase that 50 percent to 15 percent so more comes back to us (and yes you got it, more goes to government, so you are really doing a good thing, schools, roads, hospitals etc).
And there are 35,000 other Victorians beavering away in this great racing industry and this all helps to sustain their livelihoods too.
And look, this only brings us into line to what your punting mates are copping (should say, paying), in New South Wales, South Australia, West Australia and Tasmania. Just think, you could be living in Queensland and be stumping up 20 percent.
And there was some suggestion that the Victorian government wanted to go the big 2-0 as well, but our team worked feverishly and diligently to keep to at just 15, so see we do think about and care for you.
So, you should also feel comfortable that this new POCT (let’s use that for ease between friends), underpins the racing industry for the next decade, we like to say, “gives us some certainty”, as we let the government plough through the laborious task of working out the next wagering licence due next year.
We have no idea how that will look, who will have it, whether it’s our long-term mates at TABCORP, who we note this week have sort a rolling 30 year licence term as part of their late submission, so they must think it is worth plenty, thought not as much as the $410m we got back from them for the last one in 2012.
Of course, back then it included the very valuable retail exclusivity, and of course we know you now hardly ever go to the “Lucky Shop” and gamble responsibly with whoever lets you on with your phone. (A little aside Tabcorp had the chance to run a betting exchange - a la Betfair - under that deal, but they didn’t have much hunger for it obviously (or ability to run one), and the government removed that in 2019. Anyway, no biggie.
But you know two how times have changed, and competition should be and hopefully has been for the better we say, so perhaps there will be some traction in the tender that could lead to multiple licences or variations of the one. Not to bore you down with information but you may have seen Entain, the lads behind Ladbrokes and Neds, recently were awarded a long-term deal for the New Zealand betting licence.
They are putting up NZ$160m up front and a minimum guarantee of NZ$1b over the first five years plus a little kicker if the NZ government remove geo-blocking giving them TAB like monopoly powers to the country’s punters.
So, all we are saying is that they know a thing or two about the value of the market and thought it’s worth noting their profits are down, some 15 percent, well so too are the likes of major rival Sportsbet, their returns to the industry via the POCT as well (along with product fees), are helping us keep our heads above water.
But for how long. There is some talk we are in the hole for anywhere up to about $100m, and there may have to be some “targeted” reductions in prizemoney. We could (should) have seen this coming, and don’t think we didn’t, it’s just we think in the short term, asking you to pay that little bit more is the way to go.
Not promising we won’t have another dip at you later but maybe we can help. We know there is probably no other industry’s that treats it primary customers like this, but how about a few ideas to share?
Minimum bet limits – that is if you are still getting on – the Northern Territory Government, where the major corporate bookies are licensed, don’t come under our rules in relation to this.
But we understand it’s something your friend, quasi union leader Richard Irvine, is banging on about around the Federal Government’s government inquiry into online gambling – and we all await some significant feedback from that. Did you see that Peta Murphy chairing those hearings, wow, wasn’t she tough, fearless, articulate, well researched. We look forward to some outcomes and recommendations. She looked very much in line with you lot there.
Whether you get those National Betting Obligations through? Maybe. You’d think if promo advertising (and much more), inducements for example were given the flick, our conduit partners should look to act in good faith with you guys to engage a relationship that works for all. Might be a bit of window dressing, but a start.
And at the same time, it seems the smaller bookies bottom feeding the marketplace have sneakily snuck in and written their own terms and conditions that aren’t much helpful to you, so let’s put that into the melee as well.
Don't worry either that we know one of you (after possibly being induced to have a wager) lodged a dispute on that and a number of matters and the Government commission is on to it - though it may take 12-24 months to sort it out. Stay with us.
But the Northern Territory Racing Commission accepts that their terms and conditions favour bookies over you guys, the punters, they get away with that because their taxes form a large chunk of the NT economy.
So yes, perhaps there should be a much better balance, between taxation, growth and the customer, just saying, let’s see what can be done.
We know it’s tough out there with cost-of-living increases, and we hope that you, our beloved recreational punter, and loyal fan/customer, can see that it is still worth having a go with us, despite having to cop those increased market percentages and reduced offers, we don’t want to lose you, or mostly your money.
So, leave it to us, you are in safe hands. Trust us.
And see, you thought it was as simple as not having to wear a tie to the races to keep things bubbling.
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