STATISTICS ON BETTING

Press, Volume LXXXIII, Issue 25134, 15 March 1947, Page 10

STATISTICS ON BETTING

EVIDENCE OF RETIRED CIVIL SERVANT

BIG RISE IN AMOUNT INVESTED

(P.A.) WELLINGTON, March 14. . Mr H. Valentine, a retired second assistant general manager of the Railways Department, gave a 7000word statement on the economic and financial aspects of gambling before the Gaming Commisison to-day. There was exploitation of gambling in New Zealand by bookmakers, by the State and by clubs, he contended. Between 1939 and 1946 the commission of racing clubs on totalisator turnover increased from £771,000 to £1,636,000 while the stakes' paid increased from £550,000 to £1.078,000. Between 1907 and 1946 totalisator investments a head of population increased from £1 .93 to £11.2, or almost sixfold, and the clubs’ commission from the totalisator from £165,000 to £1,636>00 nearly tenfold. Where economic conditions were the same, more racing resulted in more betting. This was why the churches advocated a reduction in permits.

Assuming a £20,000,000 turnover Dy bookmakers in 1946. the percentage which would have been deducted had this sum gone through the totalisator would have amounted to £3,500.000. against which would be offset losses against which the bookmaker safe guarded himself with limits or by “reinsuring” with other bookmakers or the totalisator.

Proof that racing caused loss of production was shown by the Government’s action in limiting racing days by 50 per cent, and meetings to Saturdays and public holidays during the war, and the continuance of the latter limitation in peace. The licensing of bookmakers, ne claimed would enable them, with the legal status thus provided and the added financial strength, to exercise an even greater social, political and sporting influence than they did now to boost gambling. As one bargaining point tor such a privilege they had offered to act as informers on those not licensed.

Referring to New Zealand art unions, the witness said that the corn mission on sales amounted to 15 per cent., expenses to 12.4 per cent.. lottery duty 10 per cent.. new profit 38.3 per cent., and prizes 24.3 per cent. The chance of drawing any prize was 540 to one. a prize over £5 it was 1570 to one. and for a prize exceeding £lO it was 33.000 to one. This was based on an average of about 165.000 tickets sold in each such lottery. The reason so much more money was invested in overseas lotteries was that better terms were offered.