DIVIDING DIVIDENDS]

Evening Post, Issue 2, 2 July 1932, Page 21

DIVIDING DIVIDENDS]

ASSISTANCE F()R OWNERS

"' SUGGESTION EXPLAINED

.',, One, of. the. principal complaint^ that owners, trakvus, and others with special knowledge have to make about the totalisatbr system of; betting is;-that it fails to provide 'them with means : of^-gaining financial' advantage from "such knowledge. They argue -that" with a' bookmaking sys-., tern they" could invest their money early at-good odds, whereas investment1 on" the totalisatox gives;. them only the pooled dividends that everyone can participate in. Most owners and trainers approve of "• the totalisatorin principle, but many - believe that in. dividend computation,there should be some distinction, .made between those who face the expense and do. the hard workifor wins^and those, who ;simply make their investments..' oh. "informal tion" or, merely on chance. "' ' *\ It has always been accepted by1 the authorities,' and for' all that"'by 'the general racing community, that the • totalisator system ■■ dbes not ■ allow of distinction: in dividends;•, 'The■■ win -and place rule, off computation ; attempts. in : a. • way, to meet--the desires of■ those who believe they have ,special, knowledge, but it ."does not ..in fact,,ll,o, so, for again there", are common pools, and it hagpfens quite,often that the place dividend'is almost as good as, -jr even" better' than, ttie straight-out winning, dividend. .■Again'the few with special • knowledge cannot turn it to" account, ' for everyone :inl the pool receives the same dividend. ; ■ ~:'.;;.■,

However,-there -is a way •of computing •dividend's^by...which, owners and- trainers niight take some benefit from their special knowledge, and the ..method will now be explained.. Whether or not Sit is applic-. able under present racing .conditions in the Pqmiriion.'must, of course, be for the authorities to" decide. : ';; ' '-:

_ The principle of the system is simple. The, common, .pool remains as it is at present, ,but those who make their investments 'on t tb.e winner during' the first quarter of an hour (say) that the totalisator is' opened receive a'dividend half as great again" as those who place their" money on' the machine after the first quarter of :an hour. : :: .

:.... As thosje :with special knowledge claim '_ that they SAoul'd have aii advantage only if their-horse' wins it is? proposed' that the two dividends be paid but only on 'the -winner, and that a comnion dividend '~:- -be paid on.,the-second-horse as at • present,for -second, dividends, ■ in . principle? ■ we .mainly only for some- recompense if the s , backed, horse ig not quite good enbush to '.. win.;, '.- „.- .•.-.. ...... ! .■''■ \.~.. ■■:;" WORKING OF SYSTEM.: V•; >\ ■■ The principle, of the suggested System '.-.;•• will now, be amplified, and an attempt-.will •,, be made .to-show-what special advantages ...; .such a.system may have over the present .system. A .suppositive 'case, will be taken. . .The totalisator.;'opens. on a .race for .which there are ten' starters, and 'betting .:;•'commences. At the end of a quarter of an hour the windows are closed, and inside the machine' 'a check is taken of' ■: all tickets sold and a new code stamp (or. •now ticket reel in:-the case of 'art electric ■ is- issued. -After, -say, ,two . :>or- ; ,three minutes ..the totalisator opens again and selling continues, iThe totalisator finally closes at a notified time The progress.^ the betting is indicated as usual, with a special hoist of the: bet' • ting ? done during the -first quarter-hour •,?,-.»ade ; when the totalisator is opened after ■the two or,three'minutes' special dosing; -..,- . .Now;; suppose that £1540;. were invested ■•;■<-.• on >I*e machine, .and that the.-.horse A, ...... on, whbm7£Bo was invested .during "the | r?t.,Quarter-hour Arid £20.0' during the " *°? I:'Pe"°a."turns out to be,the winner. ,* J-hespoor, for ■distribution; to ;the- backers -" • 'SVL*"?"' alid sfecond horse' (say BY -- is X £1280^; being taxation and ■" ?lofim are' J and, 6f this-sum three parts -::(£960) goes to the backers'of !A! ■. ::.x Under the .-.present: system 'there would ,; have.been : £2Bp in all invested on A; and •/ :i??.4™dend : would .have.'been- £3 8s- 6d' ..,,Under system this is; what .: - 7°J lld "Wire .to have .been done in-, calcu- ,, . Jat"!g |nf. dividends. 'To the.. investments •> rlsm ; durini the first quarter; of an: hour. ■.;'■ (. £?°); pother half; would' be "added giving the .figure-120; and this would be aggregated with the figure represented by' ■ the imveßtments made in 'tKe second period,. 200, the-320 thus obtained being ' - . ;The pool for backers of ' : hv tk ™CSei £¥ o) is hereupon.divided ~ by. the 320, .and -the quotient is found to ■ E 5 a ,-<A.-dividend .of .£3 will,therefore . be declared payable to the later,backers . . ?f^; °V thei tptalisator 'and a.dividend '-^'V.MJW again/ i.e., £4.105, will'be ~ - d. ec'ar. ed: for those, whose tickets, show dnrW tZ '%**? tKe- ir investment on A during the first quarter-hour ' ' . ' roij -°ther ' 7-°?f?' V, instead '<>f; everyone -receiving; a, dividend- of.. £3 -8s 6d -.on.A, .... -those-, who -did their,betting early (pre--1 : 4 u. mably.-those with ready!, knowledge) -. will, .obtain, a. dividend of £4 ,10s, and hist,fT W t0 Jf rn abo«t the "good of £3 J; " with a dividend :: + iiitT* i 1 11- t?.''o^^.:.-*at;the.'return^to ■ llfin l£ c -fir^ £8t) is • £360, and that the return to the holders* :' of the subsequent-£2OO-is £600, thus'ac•of l'S r'^ h6' e 'S St ■" ir^A - dii:f On °f c divWehds .is ,not sug- , gested m the case of B (the second horse) as .his backers, ,in ordinary . -t.rincir.le is a quarter of / £1280;r i.e., £320. If B

VU- OF 5Y5f£M. ' K>.XU-'¥}* el}eJ- eKti<& a'systeni lias many advantages to offer:' The first ™l trom betting on the totalisator. ■■ With ... f ?ndu^ en* " is''a.' reasonable as- :,., hope, seriously to. compete with, the total- . ; mtor if they Pald only the smaller divi- ■" wo^rl"l°b7iolll^^^tages are that it would draw patronage to race meetings and would cause the betting to' bq2 ■ evenly "distributed ' during • the' titae Tat -- the totalisator is open. The latter iq :an vmjortant point, it 4rtld dimi"m«v grea measure the final rush to the /Te 'run 6', anf" T + - Ces t T ollltl -consequently "™U£*\ UP to' tlme throughout; . There •might be a rush -towards the. end of the , s ,first quarter of. an hour, but-the rule C--' be Udo^ tO b?.-^d-%t-the^d^ - P?.- .."Pfff.. immediately the first period \l ™P>,Wbeiny shut ou« having To do their betting ln the second period -dl la 6 t° nCi Utliug ' the &'ticle' h may <be -arS^^^^tSs-S make mistakes- »• nof sound, as a staft of very ordinary capacity • should be ca?- ---= ab pofshandhng the sy^em. it j s , liS, believed-that very little additional time ":X°nl l:be ? e + w d f°r' c? lc«latin F the divf- • dends, and that any time so lost would ■- TlK¥ ma^- "P. through the.better distribution of. the 7 betting while the r , totalisator is opened.. ' ...

--'.-" Another, difficulty, that might be' au"est?d is that it would; be necessary to -~. issu.e two Betso£ tickets. After all, many -businesses have reluctantly to make-much ' im°re J>!"<™s chances in "their" methods -than this tosurvive. ,In electric totalis- ?• ators,two-reels might-have to. be-used ?.t-for.;eaeh horse instead jof one. The code r might be kept the. same, with a different r, number or |etter-,:surcharged.on the reels.

In. manual machines the system would not involve changing raclcs,. but only the code stamp, or ; the colour; of the ink (with, of. course, a hew but identical code stamp). These are only suggestions, and undoubtedly 'better onts: might' be goffered by totalisator experts. ;.- ' >.± : ''--,„■ '■•" Such a system might be; incorporated in the Rules of Racing, either; jnr- substitution for, or as a permissive alternative to, the present rule of computation, without the necessity for legislative sanction as would be. required 'in the ... case of .doubles totalisators or telegraphing investments. \lt must always, however, be a question whether such a change would be considered politic by, the authorities, and Jhis is a point.that the, present article' cannot' assume to touch. It is offered solely:. to' show that'the present system is not so obdurately inflexible as lhany are wont to view it. .-