Everyone in racing ~ whether they have a vested interest in the industry or are  regular or even occasional punters need to steer clear of the financial genocide which is the Open Bet~strong words? exaggeration? ABSOLUTELY NOT!!!!  and here are the facts and figures to prove it.

This is an article that appears on the Mike De Kock web site www.mikedekockracing.com the figures are staggering and the message is clear!!!

QUOTE: This is a “MUST READ”

Bet with the Tote and support racing!!

It’s often said that horseracing in South Africa would thrive without fixed-odds betting and an analysis of how much more bets placed on the tote contribute to the sport, as opposed to fixed-odds bets with bookmakers, shows why. To cut a long story short, prize money for races in Phumelela regions would increase dramatically if the money currently wagered with fixed-odds operators was bet on the tote instead!

Put another way, if the money currently wagered on the tote was bet with fixed-odds operators, horseracing would have to close its doors.

Fixed-odds betting has an obvious appeal for horseplayers in instances in which a fixed price is obtained about a runner that then shortens significantly in the betting. By and large, however, tote payouts compare more than favourably with starting-price returns from fixed-odds bets and the bottom line is that every rand bet with a bookmaker instead of the tote hits owners where it hurts – in their pockets!

Every R100 bet on the tote in Phumelela regions yields R20 on average for horseracing, of which about R6 goes directly into stakes in terms of an agreement between Phumelela and the Racing Association, which represents owners in Phumelela territory.

By comparison a R100 fixed-odds bet with a bookmaker yields R2.70 for horseracing. This assumes a 10% profit for fixed-odds operators with them retaining R10 of every R100 wagered with them. Of the assumed R90 left over, R84.60 is returned to horseplayers with R2.70 to horseracing and R2.70 for provincial taxation.

Let’s look at the post-race distribution of the money from a R100 bet on the tote in Phumelela regions:

Returned to punters: R76.00

Provincial tax (average rate): R2.00

Vat: R2.80

Stakes: R6.00

Phumelela: R13.20

Of the R13.20 accruing to Phumelela, only some 4% (50c) translates into bottom-line profit for the company. This is because of the costs of maintaining racing facilities, conducting race meetings and operating a tote network. These expenses collectively amount to R12.70 of the R13.20 accruing to Phumelela from every R100 bet on the tote.

The breakdown of the R13.20 is as follows:

Staging race meeting: R 3.50

Staging race meeting: R 6.00

Betting operations: R 1.70

Head office expenses: R 1.50

Profit: R 0.50

A variety of expenses are incurred staging a race meeting. These range from maintaining a database for the dissemination of information about runners to punters (without which minimal betting would take place) and the maintenance of training centres, racetracks and racecourse facilities to the transport of horses to and from race meetings, marketing, security and contributions to the National Horseracing Authority to enable them to regulate the sport and ensure that races are run according to the rules.

Betting operations’ costs include capital and maintenance expenditure for the computerised tote betting system, the rental, maintenance and operation of the network of TAB branches, telephone betting centres and an online betting site, as well as commissions to TAB agencies.

It is estimated that some R7 billion is bet on horseracing nationally every year with R2.8 billion being wagered on the tote in Phumelela regions in 07-08. This yields some R560 million for horseracing of which R160 million flows into stakes at Phumelela racecourses.

Assuming that fixed-odds betting turnover in Phumelela territory is R1.4 billion (50% of the tote betting turnover), it’s easy to calculate what would happen if that money was wagered on the tote instead. Horseracing would get some R280 million annually, instead of the R38 million it receives from fixed-odds betting currently, and stakes at Phumelela racecourses would rocket by some R80 million- a 50% increase!

What is even more damaging for horseracing currently is that many bookmakers are laying the “open bet”. Put simply, a punter takes a tote bet with a bookmaker, say a Swinger or a Trifecta. The bookmaker does not place the bet on the tote, but holds the money and pays the punter the tote dividend if the bet wins. The odds are not fixed at the time the bet is struck, hence the term “open bet”.

Given the average return of R76 for every R100 wagered on the tote, a bookmaker retains R24 of every R100 in open bets. Of the R76 left over, R71.44 is returned to punters with R2.28 for provincial tax and R2.28 to horseracing, which would get R17.72 more if the R100 had been wagered on the tote.

The message is clear – owners seeking higher prize money and those who love the sport need to think twice before betting fixed odds or taking open bets with fixed-odds operators.

Whether you missed the Ozone segment on Laff’s show the other night or not this is a must read for all…. visit this site you will been blown away as I was…. www.horsehealth.co.za

Our first “live” auction kicks off on the 8th November at 13h00 where 5 horses will be offered. These will be the 5 horses that have attracted the most interest during the viewing period leading up to the 8th and each horse will be in the ring for 1 hour ONLY

An email with the Lots that will be offered and the time they will be in the ring will be sent out to all registered buyers on Friday 6th November so all interested parties who have not yet registered please visit our bidder registration page and join in the fun. (Registration is free)

At last after months of trials and tribulation we are  up and running with our first “live” auction on the 8th of November!!!

We owe a HUGE debt of gratitude to the genius of graphics and ”Wonder Girl”  Meryl  www.pixelmagic.co.za who came to our rescue along with “Mike the Miracle”  www.michaelbain.co.za and the girl who has a way with words Dayle of the very aptly named www.getitwrite.co.za (she always does) together they have achieved in under 2 weeks what those before them had tried and failed to do in close on 5 months, I have no doubt that Tina T had you guys in mind when she wrote “Simply the Best” coz that,in a nutshell, is what you are……

On a slightly more serious note….

as our prices and commission structure will show, we aim to give everyone a fair deal and we appeal to all that make use of the site to do likewise, we  expect (and insist) that any of our  Buyers when  bidding for a horse  do so within their budget so as to avoid any problems when a Lot is knocked down to them, asking you to purchase a buyers card  when registering as a bidder and placing a deposit with us we feel is an unnecessary inconvenience so we have stayed away from that option but we do however reserve the right to block anyone from using the site if any commitments are not met and we WILL exercise this right if circumstances deem it necessary,we also have a policy that forbids the Seller from “bidding” on their own lot,we have a very astute team of Monitors whose sole responsibility will be to police the site and  any irregular behaviour will result in the removal of all lots placed on line by the perpetrator,all bids being declared Nil and void and his/her profile being blocked…a more comprehensive email will be sent to all registered  users in this regard….enough of the heavy stuff enjoy the site ……and always remember  Bid Smart~Buy Well~Pay Less. The bidahorse247 team.

Horse racing, show-jumping and dressage (and indeed most equestrian sports) have always been coined ‘The Sport of Kings’.

We may enjoy these sports and do them to the best of our abilities, but very few of us have the bank balance to match!  The purchasing and selling of horses is costly enough without adding to it the stress of commissions and viewings.

For this reason, the team at BidAHorse247 is bringing you a cost effective, but efficient way to sell and purchase quality horses. Our easily accessible and user-friendly website will allow you to search our extensive database of available animals.

Quality service brought to you by a dedicated, knowledgeable and trustworthy team will ensure your purchasing experience is pleasurable and stress-free.

George Croucher has been involved in the racing industry for 35 years. He was the late Greg Botten’s assistant for 5 years as well as the agent for numerous jockeys. He has been running GMC Bloodstock for the past 6 years.  Daryl Peense is in charge of our advertising. He has worked for numerous advertising agencies and has been involved in racing for more than 10 years. He even has a few horses of his own.

And last, but certainly not least…. (Drum roll please)

We are thrilled to call SA champion Jockey Andrew Fortune a part of the BidaHorse247 team.  He may have a history that makes Eminem’s look like a choirboy, but he is loved and admired by everyone in the industry. Not only does he RIDE the horses, but he really knows them and his input will be invaluable to everyone who uses our website.