FIXED ODDS BETTING IN SA AN OVERVIEW

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FIXED ODDS BETTING IN SA
AN OVERVIEW
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Introduction

• FIXED ODDS BETTING AND ITS IMPACT ON THE HORSE
  RACING INDUSTRY IN SA.
• PRESENTED BY
• DEREK BRUGMAN

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Topics of Discussion

• 1.BETTING PERCENTAGES - A BRIEF
  INTRODUCTION
• 2.REGULATORY ENVIROMENT
• 3.COMPETITION
• 4.SWOT ANALYSIS
• 5. RECOMMENDATIONS

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1.BETTING PERCENTAGES

• HOW DO WE CALCULATE PERCENTAGES?
• WHAT IS THE INTERNATIONAL ACCEPTED NORM?
• SA-THE STRETCH AND DEDUCTION FACTOR.
• SA-ANTE POST VS SP .

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• WHAT IS THE INTERNATIONAL ACCEPTED NORM?
• HORSERACING A 112-115
• SPORTSBETTING A 105-108.
• SOUTH AFRICA?(LETS SEE)

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2.REGULATORY ENVIROMENT  

• 6 TAX ON WINNING BETS PAID BY THE PUNTER
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• OUTDATED LAWS THAT IGNORE THE INTRODUCTION OF
  TECHNOLOGY IN THE BETTING WORLD
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• INCONSISTENCIES IN PROVINCIAL LAWS
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• EFFECT ON COMPETITIVENESS OF LOCAL BETTING
  MARKET AND THE ABILITY TO ATTRACT NEW AND/OR
  FOREIGN PUNTERS.
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• UNFAIR TAXATION REGIME ON FIXED ODD PUNTERS VS
  CASINO PUNTERS.

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3.COMPETITION  

• ALL FOREIGN BETTING HOUSES I.E LADBROKES, WILLIAM
  HILL, CORAL ETC
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• BETTING EXCHANGES (NOT NECESSARILY A BAD THING)
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• CASINOS, LOTTERY, SLOT MACHINES
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• ONLINE CASINOS
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• SAFTOTE? (MORE COMPLIMENTARY)

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4. S.W.O.T. ANALYSIS
1 STRENGTHS   1.1         PUNTERS WILL ALWAYS
HAVE A NEED FOR FIXED ODDS BETS TO AVOID THE
UNCERTAINTY OF CHANGES IN ILLIQUID
POOLS 1.2         RACING IS STILL (TO A DEGREE)
A GAME OF SKILL AND PUNTERS WILL INDEFINITELY
HAVE A BETTER CHANCE OF WINNING ON HORSE RACING
THAN IN ANY OTHER FORM OF GAMBLING  
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2. WEAKNESSES SIX PERCENT TAX FOREIGN EXCHANGE
REGULATIONS UNCOMPETITIVE BETTING PERCENTAGES IN
SA OUTDATED LAWS PREVENTING THE USE OF TECHNOLOGY
TO ATTRACT NEW BLOOD OR EVEN JUST TO COMPETE ON
A LEVEL PLAYING FIELD
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3. OPPORTUNITIES 3.1 THE SA ECONOMY
HAS NEVER BEEN STRONGER, THE 2010 SOCCER WORLD
CUP IS COMING TO SA. IF WE RESTRUCTURE OUR
BETTING MARKETS TO BE INTERNATIONALLY COMPETITIVE
WE WILL RIDE THE CREST OF THE WAVE      
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4. THREATS WE ARE BY NO STRETCH OF THE
IMAGINATION COMPETITIVE OR PUNTER FRIENDLY ENOUGH
TO ATTRACT NEW MONEY EITHER ON A LOCAL OR GLOBAL
SCALE. PIRACY OUR SPORT IS LOSING OUT ON
BILLIONS OF RANDS IN TURNOVER DUE TO OUR
RELUCTANCE TO CHANGE. WE NEED DRASTIC CHANGES OR
ALTERNATIVELY ACCEPT OUR FATE.
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5.RECOMMENDATIONS
5.1 ABOLISH THE 6 TAX ON WINNING BETS AS A
MATTER OF EXTREME URGENCY AND REPLACE IT WITH A
TURNOVER BASED TAX   5.2 LEVEL THE PLAYING FIELDS
BY ADJUSTING CURRENT LEGISLATION OR PREFERABLY
PASSING NEW LEGISLATION TO REGULATE THE ONLINE
GAMBLING INDUSTRY (TIME IS OF THE UTMOST
IMPORTANCE)   5.3 FORMULATE A POLICY THAT
REGULATES BETTING PERCENTAGES IN ORDER TO BE
INTERNATIONALLY COMPETITIVE (FOR ANTE POST AND
RACE TIME BETTING)   5.4 DO AWAY WITH THE
STRETCH, IF YOU BET TO A 115 AS OPPOSED TO
135 THE STRETCH BECOMES IRRELEVANT AND MARKETS
ARE FAR LESS EASY TO MANIPULATE 5.5 RESTRUCTURE
THE PERCENTAGES ON SCRATCHINGS IN-LINE WITH
INTERNATIONAL BEST PRACTICES. 5.6 REDUCE THE
AMOUNT OF RACING WE HAVE TO SIX DAYS A WEEK!
EXOTIC POOLS WILL INCREASE SUBSTANTIALLY,
NEGATING THE EFFECT OF AN EXTRA DAYS TURNOVER
FOR RACING OPERATORS WHILST REDUCING THE COST OF
HOSTING AN EXTRA MEETING.   5.7 GIVE SOME
SERIOUS THOUGHT TO BETTING EXCHANGES, THEY ARE
THE FUTURE!