22 Thoroughbred Race Meetings

[Hesi]

...........in Aus, all with better stakes than NZ, and the question raised of how do they do that on BOAY

Surely if you were Bernard Saundry or Dean McKenzie, the answer is staring you in the face.  Get on a plane and spend a couple of weeks with the Aussies, until you can come back with a comprehensive answer.

Or if not an answer, a clear understanding of how they do it in Aus

[mardigras]

The problem is we think we should copy them. Their model has no relationship with ours - even though we are not far away distance wise.

They have a population that actually has maintained an interest in racing. Even though even there it is dwindling. Economies of scale mean that the money generated doesn't face the ludicrous costs NZ gambling faces. And because they run in a competitive environment, that will actually attract punters. So various operators are suited to various types of punters. Each fills a gap. And then each contributes to the industry. 

In NZ, we have one operator that can NEVER be all things to all punters. So many punters will not bet with them. That is income they are depriving themselves of. And if you look at their odds each day, it is not hard to see why. They are simply uncompetitive odds for most races/runners. You get punters betting by being enticing - especially to price sensitive punters such as barry looking for the best odds.

They are only going to get punters that are non price sensitive betting with them most of the time. That allows them  to pick up the scraps. And when a more in tune punter comes along that takes some funds, that further reduces their takeout % overall. This is simple stuff. 

 

Edited August 24, 2019 by mardigras

[Hesi]

So the problem is a very simple one, we don't generate enough income off what is wagered to support even the current stake level, because

1.  We have a substandard wagering agency with a monopoly

2.  It costs too much to administer(costs at the NZRB, now RITA)

3.  There are too few people wagering on the NZ product

There is hope that 1 and 2 are being addressed by the establishment of RITA and outsourcing the TAB's commercial arm...........who knows what results this will all bring.  They are both administrative issues and should be able to be addressed and improved, with drastic measures

However, 3 is not easily solved, and you would have to say, too far gone to be able to bring back

[mardigras]

18 minutes ago, Hesi said:

So the problem is a very simple one, we don't generate enough income off what is wagered to support even the current stake level, because

1.  We have a substandard wagering agency with a monopoly

2.  It costs too much to administer(costs at the NZRB, now RITA)

3.  There are too few people wagering on the NZ product

There is hope that 1 and 2 are being addressed by the establishment of RITA and outsourcing the TAB's commercial arm...........who knows what results this will all bring.  They are both administrative issues and should be able to be addressed and improved, with drastic measures

However, 3 is not easily solved, and you would have to say, too far gone to be able to bring back

1 Yes.

2 Yes

3 Yes - caused by themselves

Summary - as you say, largely yes. Too late, and NZ racing has become reliant on revenue generated from things unrelated to NZ racing.

Prior to the idea that commingling and increasing offshore racing exposure was the magic elixir, NZ racing was largely self funded and self sufficient. It just needed an approach to ensure that the offering was kept up to date and funds to ensure tracks were maintained to the level required. Both things did not happen. Here we are. NZRB and NZTR sold NZ racing out. And now require greater and greater funding from government, pokies, anywhere they can get it.