curious Posted March 15 Share Posted March 15 40 minutes ago, Hesi said: All good. I note de Lore talks about guaranteed payments of 150 mil per year for 5 years, but I thought it went up each year, to be 200 mil in year 5 From NZTR Strategic Funding Document 1) What is NZTR’s share of the MinimumGuarantee (MG) payment from Entain? Entain’s MG commitment applies for the first five years of the agreement and starts at $150m per annum, rising each year thereafter (NB – if a ‘legislative net’ is implemented this would see an additional $15m added to the MG per annum from 2024/25) Correct but you can't believe much that de Lore writes. $170m for 2023/24 (+36% compared to current financial year) $175m for 2024/25 (+40%) $180m for 2025/26 (+44%) $185m for 2026/27 (+48%) $200m for 2027/28 (+60%) Quote Link to comment Share on other sites More sharing options...
curious Posted March 15 Share Posted March 15 As expected, complete bs from de Lore. This prompt response from Tony Severinson, Head of Funding and Analytics, NZTR. Bet 365, along with all other Australian Corporate Bookmakers, do pay Racefields fees to Racing NZ (via TAB NZ) for betting taken on NZ races. This commission is paid directly to the NZ racing code whose product is being bet on. In addition, offshore betting providers are required to pay Point of Consumption Charges (POCC) to the DIA, set at 10% of Gross Betting Revenue of all bets placed with them by NZ residents. Racing NZ receives a quarterly payment from DIA for POCC, although no breakdown of the contributions from individual operators is available. 3 Quote Link to comment Share on other sites More sharing options...
mardigras Posted March 15 Share Posted March 15 4 minutes ago, curious said: As expected, complete bs from de Lore. This prompt response from Tony Severinson, Head of Funding and Analytics, NZTR. Bet 365, along with all other Australian Corporate Bookmakers, do pay Racefields fees to Racing NZ (via TAB NZ) for betting taken on NZ races. This commission is paid directly to the NZ racing code whose product is being bet on. In addition, offshore betting providers are required to pay Point of Consumption Charges (POCC) to the DIA, set at 10% of Gross Betting Revenue of all bets placed with them by NZ residents. Racing NZ receives a quarterly payment from DIA for POCC, although no breakdown of the contributions from individual operators is available. Which means that not only are they paying a fee for bets placed on NZ racing by NZ punters, they also pay a fee for bets placed on NZ racing by non-NZ punters. Along with the Point of Consumption charges for bets originating in NZ. This has been around for quite a while - yet somehow De Lore didn't seem to know or bother checking. 1 Quote Link to comment Share on other sites More sharing options...
Hesi Posted March 15 Author Share Posted March 15 Good work Curious, 2 fundamental and significant errors in his article. I think you should inform Entain Quote Link to comment Share on other sites More sharing options...
curious Posted March 15 Share Posted March 15 Just now, Hesi said: Good work Curious, 2 fundamental and significant errors in his article. I think you should inform Entain Pretty confident that Entain can work that out for themselves. Not that a de Lore article could possibly hold much sway but for the naive at this point. Quote Link to comment Share on other sites More sharing options...
curious Posted March 15 Share Posted March 15 (edited) 10 hours ago, mardigras said: Which means that not only are they paying a fee for bets placed on NZ racing by NZ punters, they also pay a fee for bets placed on NZ racing by non-NZ punters. Along with the Point of Consumption charges for bets originating in NZ. This has been around for quite a while - yet somehow De Lore didn't seem to know or bother checking. Interestingly, in the course of investigating this, I came across the following in relation to the previously much discussed topic of the quantum of offshore betting by NZers: “Offshore platforms who offer gambling on sports and race fixtures currently pay a Point of Consumption Charge of around $4 million per annum, that is returned to the sports and racing codes in New Zealand for community benefit and harm minimisation efforts,” Kieran McAnulty said. Applying a bit of simple arithmetic based on the above 10% figure, that means that the total overseas sport and racing gambling spend by NZers is about $40m. From that, you would guess that the NZTR share of commissions, after expenses, is likely only just in 7 figures. Edited March 15 by curious 1 Quote Link to comment Share on other sites More sharing options...
mardigras Posted March 15 Share Posted March 15 (edited) 6 hours ago, curious said: Applying a bit of simple arithmetic based on the above 10% figure, that means that the total overseas sport and racing gambling spend by NZers is about $40m. From that, you would guess that the NZTR share of commissions, after expenses, is likely only just in 7 figures. Taking that a step further in regards the % of betting. In the 2022 annual Report NZ TAB had $380m gross betting profit. On the basis that $40 million is the total gross betting profit delivered by ALL offshore providers, that is around 10% more than the 2022 GBP. Yet, supposedly, Bet365 do 30% of the NZ TAB online betting numbers alone. It doesn't add up, since in 2018, online was 52% of the total turnover. And retail dropped 27% year on year in 2018. So the % digital now would be massively higher than 52%! Also, the gains to NZTR would be small as included already is the income from BIU charges - of which a percentage of that stems from NZ resident punters betting with offshore providers on NZ racing. Those charges would be reduced and become part of the GBR of NZ TAB (if the betting simply transferred). A quick basic calc, NZTR might end up with 40% of the GBR (offshore) = $16m (after also incurring additional expenses related to that betting & account management) 55% of the revenue above (to NZTR) = $9m less 20% of the BIU charge currently received ($22m) = $4.5m (estimate of the resident punter spend offshore on NZ Racing, already receiving income for) Net gain = approx $4.5m (if all the betting done offshore simply transferred to NZ TAB, which I doubt would happen under geoblocking) (And that doesn't allow for the Sports component of the GBR which would increase the payouts to sports before NZTR got its hands on any). Edited March 15 by mardigras 2 Quote Link to comment Share on other sites More sharing options...
curious Posted March 15 Share Posted March 15 Wouldn't that be the all racing code figure, not just the NZTR share? Quote Link to comment Share on other sites More sharing options...
mardigras Posted March 15 Share Posted March 15 (edited) 9 minutes ago, curious said: Wouldn't that be the all racing code figure, not just the NZTR share? My calc could be way out - but the 55% was meant to be taking the NZTR share. But I doubt the all code racing share of the $40m GBR would be as high as the $16m NBR I have above. Edited March 15 by mardigras Quote Link to comment Share on other sites More sharing options...
curious Posted March 15 Share Posted March 15 Oh yes, I see now. That's about right, maybe 57-58%. 1 Quote Link to comment Share on other sites More sharing options...
Hesi Posted March 15 Author Share Posted March 15 Where do you guys anticipate the growth in wagering could come, which has to happen, or it all goes a bit pear shaped Increase in the amount existing customers wager Taking business of competitors, for which they would have to increase their competitiveness New customers, a lot of marketing expenditure which they do not seem to be adverse to Sports? Racing? Quote Link to comment Share on other sites More sharing options...
mardigras Posted March 15 Share Posted March 15 Tough climate to increase wagering. Sports is likely primary option. For racing, it is going to come down to attracting customers that won't bet with them now because of price. Not sure if they want to godown that path and instead probably hoping service improvements will help. 1 Quote Link to comment Share on other sites More sharing options...
Buller Rep Posted March 17 Share Posted March 17 On 3/14/2024 at 5:37 PM, Hesi said: A few key points for the slow readers 1. A new state of the art wagering App/platform at the end of April 2. Paddy Power dog is all gone 3. A new TAB logo and colour at the end of April 4. A strong commitment towards free to air TV 5. 30% of online betting with NZ'ers is with Bet 365 6. To date Entain have spent 30 mil more than their contract commitment Add to the above, the “old Trackside Racing frequency’s”will soon once again be much more focused on broadcasting races. It has partially started because it was my pleasure to listen to the last from Trentham when I was driving home, because I backed Zackery before leaving and he paid $21+ 😂 1 Quote Link to comment Share on other sites More sharing options...
curious Posted March 17 Share Posted March 17 Just by way of comparison, overseas online casino providers are paying GST of $37.5 million a year. So, NZ punters are losing 250 million a year on that gambling medium. I think that figure may have got mixed in with some of the claims about NZ racing's wagering losses to overseas bookies. 1 1 Quote Link to comment Share on other sites More sharing options...
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