Entain getting things right ?

[Ohokaman 6,465]

A fair bit of self congratulation here, so let’s see what the future brings to the industry in real terms…

Free-to-air Trackside boosts betting

Much improved signs heading into Entain Year-2

by Brian de Lore
Published 25 June 2024

Free-to-air Trackside and aggressive marketing have Entain Managing Director Cameron Rodger smiling broadly after receiving the latest betting figures.

A few days ago, he told me, “We are just now in the process of measuring what the move to Free to Air has done to overall trackside audience numbers. This data is still being finalised but to give you a sense of the result – our total Trackside audience on Saturdays is up more than 25% – and the total viewership over the week is up even more.”

Cameron added: “It’s more brutal out there than probably anyone could have accurately pictured, not just the betting market but all consumer markets, but what I’m seeing is upside through engaging more customers – we have so many more customers on our books now compared to last year. But we are getting less out of each customer than we had hoped because there is less money in everyone’s pockets.  

“Through our investment here, we have managed to fill the funnel at a fast rate, so we have had a 21 percent increase in customers, which delivers to us a turnover that’s not in decline. And that increase came after only 17 days of testing from marketing the new app, so that’s tracking really positively. If we had the same customer base we started with, we would be in serious trouble.”

The economic downturn may be worldwide, but it is reportedly worse in New Zealand than in Australia. So why is post-COVID betting in Australia estimated to have a 15—to 20 percent downturn, but against that trend, turnover has increased in NZ over the past year?

 

Entain men have a passion for racing

The simple one-word answer is Entain. The newbies have introduced a fresh change of direction and taken control of the decision-making at TAB NZ, thus eliminating the non-performing, apathetic administration of the past with an injection of new life. Dean Shannon, Lachlan Fitt, and Cameron Rodger are intelligent people who all have a passion for horse racing, a vital but missing ingredient in most of their predecessors over the previous 20 years.

Entain’s partnership with TAB NZ can only be described as ‘game-changing.’ Cameron Rodger doesn’t entirely agree with my assessment that TAB NZ would now be broke. He says: “If the new distributions hadn’t gone through, distributions to the codes would probably have been cut by about $20 million.”

Applying that to the thoroughbred industry, the available prizemoney would be 36 percent less than the current level, accompanied by an exodus of the industry comparable to the annual Hajj to Mecca.

Cameron Rodger is buoyed by the most recent stats coming to him after a year of placing racing in front of the general public by embracing mainstream media. He elaborated:

“Thoroughbred racing in May was up 28 per cent in turnover on the previous year, which is a huge leap forward, and harness was up 15 per cent, and Greyhounds was up eight per cent, and that’s just May. Total active customers in May 2024, was 82,500 against 72,000 the previous May, so we are genuinely thrilled with what we are seeing.

 

June new customers up 15%

“As an example, for the month of June thus far, we’ve had two-and-a-half times more account sign-ups than we had in the same period last year. That number is exceeding even our own new customer number forecasts – by just under 15%.

“It tells us that the different initiatives we’ve put in place are doing a great job of getting customers in the door which is the critical measure we are chasing, and is especially gratifying this early on.”

No one will deny that Entain has made a great effort in year one, but what about sustainability? The first year has passed with a positive pass mark, but everyone with an investment in racing is interested in the long term with consistent growth which will encourage new participants. I put that question to Cameron:

“We have a five-year window for a reason, we are not going to be going backwards. If people can see that we are trying our best to find a solution to issues that are not really our issues to solve, hopefully, it shows how serious we are about New Zealand’s future for the long term.

“We don’t even have to worry about the turnover right now because we are here for the long haul. I’m not just putting on a brave face, there are genuinely very good signs despite the tough, tough market.

Riding out the economic downturn

“Without the economic downturn, we would be really flying along. The upshot of this is that we can ride out the cycle now, and distributions won’t be affected. We can keep investing and growing customer numbers. When the economy comes back, we have a great customer base to grow again.

“We are up 3.5 percent year-on-year in turnover and gross profit is also up slightly.

“Other jurisdictions are down, and we are putting up a helluva fight. It’s genuinely showing us that if we can get these numbers up further, it’s very positive for the future. The best thing we can do at this time is not to try to get more money out of our customers in this economic climate.”

When I suggested to Cameron that the problems confronting the breeding industry are just as serious as racing with a historically declining stallion, broodmare and foal population, he responded this way: “We are aware of the problems facing the breeding industry.

“The top end seems to look after itself, but there has been a weakening of the middle and bottom end. We are trying to get involved through the Pearl Series. We have looked at the decline of the broodmare band, which can’t be ignored; if you look at the number of stakes-winning mares and progeny going through the sales, it’s on the decline, and good broodmares are getting harder and harder to buy.

 

“Prizemoney increases still catching up” – Cameron Rodger

“We do know that increased prizemoney makes a difference over time, but we are trying to think of tactical ways we can engage the breeding and racing industry. I don’t really think that the full upside of the prizemoney injections has yet caught up to all areas of the industry.

“I think the time to be investing in the industry is in a downturn, and I know that’s an easy thing to say, and everyone knows that principle, but it’s just a hard thing to do in real terms. The amazing positive we have right now is that we are one of the few sectors where, despite the inflationary pressure, the underlying picture is improving. I do believe that things will improve within a couple of years, but it might be a more extended period of pain than most people thought.

I said to Cameron Rodger that we are an apathetic industry with a poor record of helping ourselves and now we are relying on Entain. He replied: “We are not pretending we have a silver bullet.

Cameron Rodger: “Lachlan Fitt is a machine; he doesn’t stop”

“Lachlan Fitt has been appointed Chairman of the board of Thoroughbred Marketing (NZTM),” he continued. “You won’t find a more passionate foreigner when it comes to the New Zealand industry – he loves it and is a machine; he doesn’t stop. He’s never satisfied and he’s the one that’s driving things here, but we haven’t worked out all the equations yet.

The Entain executives have all pledged their allegiance to racing over sport, which is music to the ears of racing, but he did finish the chat by revealing an interesting stat, which comes as a result of advertising on mainstream media:

“The turnover on the Warriors has gone from about $400,000 to $620,000 per match  involved, so it is about a 50 percent increase.”

 

 

 

 

 

[MisterEd 424]

34 minutes ago, Ohokaman said:

“As an example, for the month of June thus far, we’ve had two-and-a-half times more account sign-ups than we had in the same period last year. That number is exceeding even our own new customer number forecasts – by just under 15%.

Ah they have pulled out the old customer numbers are up trick. Something they have done for years to put a positive spin on things and make the numbers look good.... In reality this customer increase is the result of new customers joining up to get a free bonus bet and once used they are never seen again. Highly inflated accounting!

[nomates 5,463]

As he said it's just the first year , the ongoing problem that the TAB had wasn't so much getting new clients , although it was , but retaining their existing clients , lost because of poor service and a raft of decisions that under mined punters and the way they could or were allowed to spend their money . Sort that and they will go a long way to getting consistent results .

As for the declining breeding numbers , well as he said the big boys are looking after themselves , but the middle and lower end aren't just weakening , they are in free fall . And as much as I think service fees are too high across the board , the cost of the service is not what is killing off small to medium breeders , it's the associated costs , transport , grazing and vet fees . As I have stated before , I know people who stopped breeding or substantially reduced because those extra costs on a lower end priced stallion were running well over the cost of the service fee . It became untenable .

And now to get anywhere with horse a breeder has to work through NZB so their horse can get into the flow of money that is associated with an NZB registered horse , makes it even tougher for the smaller breeder . Perhaps the powers could put on a few races for horses not registered through NZB .

[nomates 5,463]

Just now, MisterEd said:

Ah they have pulled out the old customer numbers are up trick. Something they have done for years to put a positive spin on things and make the numbers look good.... In reality this customer increase is the result of new customers joining up to get a free bonus bet and once used they are never seen again. Highly inflated accounting!

Yes I agree , don't give customer numbers , give dollars spent per customer .

[Pam Robson 1,894]

1 hour ago, nomates said:

As he said it's just the first year , the ongoing problem that the TAB had wasn't so much getting new clients , although it was , but retaining their existing clients , lost because of poor service and a raft of decisions that under mined punters and the way they could or were allowed to spend their money . Sort that and they will go a long way to getting consistent results .

As for the declining breeding numbers , well as he said the big boys are looking after themselves , but the middle and lower end aren't just weakening , they are in free fall . And as much as I think service fees are too high across the board , the cost of the service is not what is killing off small to medium breeders , it's the associated costs , transport , grazing and vet fees . As I have stated before , I know people who stopped breeding or substantially reduced because those extra costs on a lower end priced stallion were running well over the cost of the service fee . It became untenable .

And now to get anywhere with horse a breeder has to work through NZB so their horse can get into the flow of money that is associated with an NZB registered horse , makes it even tougher for the smaller breeder . Perhaps the powers could put on a few races for horses not registered through NZB .

That last sentence says it all.

Looking after the small players would do immense good.

[Leggy 4,194]

gross profit is also up slightly

Needs to be a whole lot better than that doesn't it for funding to be at a sustainable level in 4 years and that is gross in a context of significantly rising costs in general that he speaks about?

Exactly why he asked Cameron about the breeding industry, "When I suggested to Cameron that the problems confronting the breeding industry are just as serious as racing", I'm not sure. That's really not their problem or business is it?

 

[Alf Riston 2,142]

Usually a fan of what Brian de Lore writes, but this is a little too lopsided for mine.

Too much backslapping, high fiving and spin doctoring from where I sit (only a punter these days and unlike to be tempted to part with hard earned on an ownership).

Sure, the previous lot were dreadful, but let's see where this ends up.....Snake Oil salesmen, perhaps?

 

 

[Nerula 1,544]

What will it take for NZTR to join the charge?

[Alf Riston 2,142]

Just now, Nerula said:

What will it take for NZTR to join the charge?

more sNakeE oiL? n0 ?

[Leggy 4,194]

21 minutes ago, Alf Riston said:

Usually a fan of what Brian de Lore writes, but this is a little too lopsided for mine.

Too much backslapping, high fiving and spin doctoring from where I sit (only a punter these days and unlike to be tempted to part with hard earned on an ownership).

Sure, the previous lot were dreadful, but let's see where this ends up.....Snake Oil salesmen, perhaps?

 

 

Tends to get sucked in and proliferate the spin rather than provide any independent, thoughtful investigative journalism.

[Leggy 4,194]

20 minutes ago, Nerula said:

What will it take for NZTR to join the charge?

What charge?

[Pak Star 1,185]

7 hours ago, MisterEd said:

Ah they have pulled out the old customer numbers are up trick. Something they have done for years to put a positive spin on things and make the numbers look good.... In reality this customer increase is the result of new customers joining up to get a free bonus bet and once used they are never seen again. Highly inflated accounting!

To be fair, they have had that promo for yonks so YoY it makes no difference what incentives there were to sign up, its still apples for apples.

If I was taking a sceptical outlook, I would suggest the recent spike would be a result of Neds and Ladbrokes accounts being shut down.

[mr_gee 451]

these percentages mean what  people wise  exactly  3  percent  isnt really a  great deal and theres a media release about  it   ,  a  great start for these smart entain works instead doing  percentage show comparison    figures 

 

or our next  update we see its gone up 1 percent 

[mikenz 1,276]

The turnover they say on the Warriers matches has gone up 50%, was just thinking it's probably mostly on the teams they are playing

[Insider 5,170]

9 hours ago, mikenz said:

The turnover they say on the Warriers matches has gone up 50%, was just thinking it's probably mostly on the teams they are playing

It's my new betting strategy.

[Alf Riston 2,142]

Entain getting things right??

Far from it - spent over an hour on the phone this morning on 2 seperate calls, the second call made on the back of being told some (kindly phrased) untruths......

Not disclosing details (I've taken screenshots) at this stage as I have put it through the complaints process and will see what their response is before being too unkind. 

 

[say no more 3,471]

1 hour ago, Alf Riston said:

Entain getting things right??

Far from it - spent over an hour on the phone this morning on 2 seperate calls, the second call made on the back of being told some (kindly phrased) untruths......

Not disclosing details (I've taken screenshots) at this stage as I have put it through the complaints process and will see what their response is before being too unkind. 

 

Hey Phil, how does the complaints process work and how do you access it?  Is it the Helpdesk?  I've got an issue with them and the helpdesk has stopped responding.

I've decided not to bet with them anymore.  I've bet with them for many many years and have generally been supportive of the TAB and their product, but a bunch of things recently have driven me away.

I'm not going elsewhere - just not betting.  Quite refreshing actually.

Will still follow the good racing and do the competitions but I'll spend my pocket money elsewhere.

[Alf Riston 2,142]

Hi John,

On the second of my 2 calls, the help desk offered to pass my concerns through the complaints process.

Not sure if my challenging not only the lack of professionalism, but also questionable integrity elevated it to that level, or I had someone that sympathised with the situation.

Both of the Helpdesk guys I spoke to handled my concerns well enough, but were limited in what they could say and do, so I chose to take the complaints process path.

They said it can take up to 5 days so I will wait and see, but not that hopeful I'll get anywhere.

So I guess you could call them again and ask them to escalate your case?

Like you, I have been loyal to the TAB, and have not chosen to bet offshore as many others have, but am now considering whether or not I might do so.

I know the threat of GeoBlocking looms, but I just wonder how this can be possible under Commerce Commission anti-competitive law....

Anyone who runs a business in New Zealand must comply with the Commerce Act, which aims to promote competition in markets for the long-term benefit of consumers.   

I'm no lawyer, but surely putting through legislative changes to anti-competitive laws, sought by an overseas company, operating a business in NZ would be just ?

I'll probably ride things out with the current lot, but if GeoBlocking comes in that will be time for me to find other ways to spend my pocket money as well.

[Bruces650mill 56]

They could also look at s15 of the Gambling Act, where you are not allowed to bet on credit... but you can top up your TAB account with a credit card. Still don't know how that one works. You can no longer deposit in Australia using credit cards.

And as for Advertising breaches... don't get me started. 

[Alf Riston 2,142]

3 minutes ago, Bruces650mill said:

They could also look at s15 of the Gambling Act, where you are not allowed to bet on credit... but you can top up your TAB account with a credit card. Still don't know how that one works. You can no longer deposit in Australia using credit cards.

And as for Advertising breaches... don't get me started. 

Seldom take Lotto, but you definitely can't use Credit Card for that, so it does seem odd that it's allowabe for TAB deposits 

[Ohokaman 6,465]

9 hours ago, Alf Riston said:

Seldom take Lotto, but you definitely can't use Credit Card for that, so it does seem odd that it's allowabe for TAB deposits 

Not true Alf, you can.

[Total 8]

Don't forget when you make a deposit with your card, the money in YOUR account becomes theirs  ...   

[Alf Riston 2,142]

3 hours ago, Ohokaman said:

Not true Alf, you can.

Thanks for the correction Ohokaman - I advertently pulled my credit card instead of debit card at the Supermarket - it rejected so assumed that this was the case, but apparently not...

[mikenz 1,276]

8 minutes ago, Alf Riston said:

Thanks for the correction Ohokaman - I advertently pulled my credit card instead of debit card at the Supermarket - it rejected so assumed that this was the case, but apparently not...

The best thing to do with a credit card is leave it in your pocket/wallet or leave it at home.

[Alf Riston 2,142]

1 hour ago, mikenz said:

The best thing to do with a credit card is leave it in your pocket/wallet or leave it at home.

Thanks Dad - I'll think about that ...