SLIGHT INCREASE IN T.A.B. BETTING

Press, Volume XCIV, Issue 28104, 20 October 1956, Page 8

SLIGHT INCREASE IN T.A.B. BETTING

Rise In Costs Blamed For Lower Profit "The Press” Special Service Alii,,, k «• ■ . WELLINGTON, October 19. Although off-course betting had shown a slight increase clubs e saM S thp ha h r esulled . r ; n ?. 10 /’ e r P rofit f °r distribution to clubs, said the chairman (Dr. M. G. Pezaro) in his report to the annual meeting of the Totalisator Agency Board today.

P r " fit ava , ilable f(,r distribution from the vear’s opera£7W 1 /“ V ,a? J amounted to £647,641, compared with x/iUOld tor the previous year, a decrease of £62,672. The reduction in profits was caused, said Dr. Pezaro bv increased costs of operation, and by additional provisions deemed necessary to preserve the capital of the board Major increases had resulted from higher labour costs because of the Greater tuinover, and higher wages payable under award increases.

had a J" ,ena " ce /osts had risen, he said, and greater allowance had been made for depreciation. The capita] of the board had turnover y f fi enVed f a . IeVV " f j per cent on totalisator turnover for five years. This levy had ceased on October 31,

. New agencies had been a contributing factor in the increase in gross inY, e stme nts - which reached a total of £22.884.739, an increase of £1.496,002, or 7.16 per cent., on the total for the previous 12 months. Dr. Pezaro said. The total net investments for the year —the gross investments less refunds on scratched horses—were £21.274.837. or £1.557.466 more than in the previous year. Much of the increase resulted from the fact that there had been two extra Saturdays available for racing, compared with the year ended July, 1955. said Dr. Pezaro. In that year, a General Election and Christmas Day had fallen on Saturdays. There had been a sharp drop in the amount of refunds of betting because of scratchings, the amount being £1.105.904, or 4.9 per cent, of the gross turnover for the year. This compared favourably with £1.167.368, or 5.59 per cent, of the gross turnover the previous year. New Agencies

The board had established 15 additional agencies during the last 12 months, said Dr. Pezaro. This brought the total to 265. There were also 22 cash branches operating. The additional agencies had been provided

to give service to the public in centres where it had not been practicable previously, mainly because suitable premises had not been available i 4 Ul l%y? e 12 m « n ths ended July 31 last, £1.989.197 had been paid to the Government for totalisator and dividend tax on off-course betting, said Dr. Pezaro.

A comparison of the six years’ operations was made in the report as follows:

During the last year, the off-course substitute had been required on 304 occasions because of the scratching of horses in the second leg of doubles, said Dr. Pezaro. Sixty-seven, or 22 per cent, of the substitutes, were 'X 1 41 n «? rs ‘ Doubles bets totalling £78,248 had been transferred to the anc l they had earned £350,600 in dividends. On an average. 60 per cent, of investors bet on doubles only, 20 per cent, bet on win and place only, and the other 20 per cent, on both doubles and win and place, said Dr. Pezaro.

Investments on Brackets “Considerable press comment has been made from time to time that the off-course bettor is unfairly treated when he invests upon a horse in a bracket.” said Dr. Pezaro. “Cases have occurred where brackets, which have been created under the Rules of Racing or Trotting, have been affected by the scratchings of the more favoured horse in the bracket. When the horse remaining in the bracket is unplaced, the off-course bettor complains against the system.

“It would be possible for the board to issue tickets for bets on any one horse in a bracket, or for all horses in the bracket. This procedure, however, would involve -the separate aggregation and transmission of investments for each type of bet. “It would be necessary to have all the individual totals of such bets available at the totalisator so that the special bets on individual horses or brackets as indicated on tickets throughout New Zealand could be appropriately adjusted if any one horse were scratched.” Dr. Pezaro said. "The aggregation and transmission of such bets would take considerably longer, and consequently it would be necessary for all betting to cease at the board’s office earlier than at n resent.

“The board is of opinion that the interests of the majority of the public must be paramount and that the closing of betting should be maintained as near to race starting time as is possible. For this reason, the board cannot make any change in the existing procedure at present.” said Dr. Pezaro.

Gross Net Net Turnover Turnover Profit J2-1 „ 135.360 125,452 19o2 3,827,803 3,560.187 26.794 }"™ 14,184.466 13.059.134 338.780 19.470.425 18.303.150 724,296 1955 20.884.739 19.717.371 710.393 1956 22,380.741 . 21.274.837 647.641