RaceCafe..#1...Tipsters Thread.... Share Your Fancies For Fun...Lets See Who The Best Tipsters Here Are.
scooby3051

ANSWERS TO RITA QUESTIONS

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Hi Everyone,

          here is the responses from Dean McKenzie to the questions you all posed, as well as a couple of more he answered as well. Once again thanks for the questions and thanks to Dean for taking the time to answer them.

Racecafe Questions

 

poundforpound

 

Hi Dean
Are you happy with the current performance of the RIU ?
I note you’ve unfortunately appointed yet another ex Policeman to head this organization.
Given the level of concern about the influence of a couple of ex Policemen currently employed by the RIU, their paucity of racing knowledge, and the fiasco evolving with Operation Inca, including the harness code demanding intervention, is RITA likely to do anything about the RIU, including but not limited to appointing some persons with racing experience & knowledge to that organization ?
Thanks 
Leo

Hi Leo

In short: the Racing Industry Bill currently before Parliament proposes a new Governance structure for racing integrity in New Zealand that RITA believes will support greater performance in both the RIU and the JCA. 

As recommended by John Messara, we commissioned an independent review of racing judicial functions (including the RIU). This report was carried out by Malcolm Burgess who is a former Assistant Police Commissioner. Malcolm is RITA’s representative on the RIU Board. 

Malcolm’s report is available on the DIA website and essentially identified that to improve independence and provide effective accountability, there needed to be the establishment of one independent integrity board (the RIB) to provide governance of the stewarding, investigation and judicial functions.

The Bill provides the tools that enable the current functions of the JCA and RIU to come under the new streamlined RIB. 

 

Stables

What is Mr. McKenzie's view of the current racing legislation before parliament and the comitment to racing of the current minister for racing?

 

 

RITA is happy with 80-90% of the Bill but have identified a few aspects of the Bill which we believe require amending, include (but not limited to) the following : 

      Changes to the Offshore Betting Charges provision as the legislation does not currently allow the degree of flexibility the industry requires. However, as indicated in the First Reading speeches, we understand this is an area the Government intends on proposing amendments to during the Select Committee;
 

      The Bill intends on introducing a framework for new products that RITA is not currently able to offer (subject to satisfaction of specified criteria). Unfortunately, the wording of the Bill potentially reduces the scope of existing betting permissions. This outcome is at odds with the intention of the reforms, and in the Board’s view an unintended consequence of these provisions. We are engaging with officials on this matter and are hopeful of constructive change; 

 

 

Furthermore, there are a number of amendments required which are technical in nature, but nonetheless necessary. The purpose of the Select Committee stage is to make these types of technical changes.

LeggyUnbeaten G1 - R124

      

What misinformation do you think is out there and what else do we need to know to clear that up?

There’s been plenty of misformation about what the Bill does and doesn’t do: right from IP through to outsourcing. 

I’ve tried to address much of these issues in correspondence sent out to the industry which can be read here -  https://www.rita.org.nz/news

Gubellini

 

Dean what are your projected figures for minimum gallops stakes in the 2020-2021 Season?

Ultimately, the Codes are responsible for determining how much of their distributions are paid out in stakes. The RITA Board is simply focused on ensuring the overall ‘pot’ available to the Codes is as big as possible. We hope to be able to make further announcements in this space in the coming months. 

 

 

slam dunk

Do you think the TAB is  necessary for NZ racing as the exclusive  local based operator for wagering on NZ racing?

 

To clarify the question. I don't mean betting on sports or overseas racing events. If you believe that TAB is necessary then is there a forum or mechanism I can prove to you that is not the case?

If TAB is actually not necessary doesn't that blow out of the water the claim by TAB to all intellectual property rights etc? 

Also are you prepared to listen with open mind to

      a. overseas bookies are not needed in NZ?

      b. there exists a far better betting format than tote, bookie or exchange?

      c. Trackside and media should be separate to wagering operators as in other jurisdictions?

Yes, the TAB is the industry’s biggest asset and the primary source of revenue for the three Codes. The TAB doesn’t just turn over wagering on New Zealand racing product, it exports New Zealand racing, derives revenue from imported racing and sports, and provides gaming revenue for the industry. 

I’m prepared to listen with an open mind to any ideas, and  indeed many took the opportunity to do that on the recent meetings I held with industry up and down the country. 

Berri 

Unfortunately I have an awful lot to ask about the proposed Act. I will always refer to the proposed Act amendment. So this will be the first of a number of separate concerns culminating in  perspective question....

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I note that the Act relates to New Zealand racing  and that the reason for changing the Act is to promote the long term viability of NZ racing. Does this mean that the Act (3 (a) (ii) is making New Zealand Racing as the default beneficiary of the Act (i.e. the primary beneficiary)?

Yes, the Racing Industry stays as the default beneficiary of the Act. There is a slightly confusing clause in the new Bill which looks like Sport NZ is introduced as a new beneficiary for TAB profits, however this clause applies only to the distribution of gaming duty savings and is capped at that amount (4% of gross betting revenue). 

Additional questions will be asked regarding 3(a) (iii) and 3(a) (iv) but they will follow

 

Nukkledragger 

Here is a question that I hope you can answer,the bookies here in nz are run as a monopoly by the tab and bookies cut you off if you are a winner, they target losers (possibly contrary to 3 b as above ) whereas tote betting is absolutely fair to all but apart from the rank failure of triple trio , no innovations have been tried for tote betting.Bookies markets are bad value in all ways compared to the tote ( recent headlines about big punters say it all) Are there any tote upgrades or new bet types specific to tote betting planned? The only choice is through the bookies.One bet I would like to see developed is a cross code multi type bet done through the tote pools as well as cross code poker type bets, they are only available with bookies whose odds are crap ,we as punters have nothing to lose by betting through the tote. Million$ was spent on upgrading systems for the bookies so they can gouge us more efficiently ,how  about some fair betting options for the rank and file punters.

Yes, the Board is looking at new ways of improving our product offering for customers. A couple of options we are working through are fixed odds exotics, which could provide a useful alternative if tote pools are low, and same-game multis. The new betting platform has also given us the ability to pick up any new innovations developed by other bookmakers using the same system. 

ShaneMcalister

I personally think there joining a world TAB pool is worth investigating. This would attract large punters, knowing two things:

1.  They can get big bets on which is. It the case with most bookmakers

2. the market could absorb their bets, and price not drastically change. 

 Are we looking at possibility of joining a world betting pool?

The TAB currently has a co-mingling arrangement with Tabcorp through our longstanding agreement with them. Conversations around a world tote pool are ongoing on an international basis and is something that the industry will need to continue following closely. 

Eclipsed 

Two questions.....

1. when, as a date, will RITA determine the code body funding distribution quantum for the 20/21 racing season? 

In July last RITA confirmed that distributions to the Codes for the 2019/20 season would be held at the current level of $151.6 million. 

As we are only halfway through the current financial year, the Board hasn’t made a determination about distributions for the 2020/21 season. 

2. given speculation over the sustainability of the current level of funding in the current 19/20 season, what will be the key determinant in assessing the distribution quantum for the 20/21 racing season?

The Minister has set some clear bookends for the business: keep distribution at least at the same level, but don’t deteriorate the balance sheet. Essentially that requires us to get a 20 percent uplift in profit. Six months in we are on budget, but the next six months will be challenging and the Board will have a close eye on new revenue initiatives and cost management. 

Berri 

 

Dean

Betting is different from “Games of Chance” (lotteries, pokies, cards etc), which could be colloquially expressed as straight out gambling. A “Bet” could be described as:

“Where the outcome of a wager is based either in full or in part on the outcome of an event where an element of human skill and judgement is required in order to predict the outcome of the event”.

And a “Wager” could be described as:

“Where an agreed amount of currency is staked by two participants or more in order to complete a bet”.

The DNA to our potential income streams for our entire industry should be premised on being allowed to take bets on anything that is classed as a “Bet” and in particular being able to engage with the rest of the World (either by ourselves, in partnership, or on our behalf) to offer as many products to as many people with offerings that could be classed as a “Bet”. TAB NZ should be known around the World as the best place to engage with/ offer/ be licensed under in order to offer bets so that it can clip the ticket as many times as is possible to support the financial viability of racing as the primary beneficiary (hence my last query), and the sports associations.

 

In Part 1 Clause 5 (Page 8) of the proposed Bill (attached) we have the Interpretations Section. The one of considerable interest to me is the one concerning the interpretation of a “Bet” and the associations with the “Bet”. It is as follows: 

The two obvious interpretations that are then needed to understand are the definitions of “Race Betting” and “Sports Betting”. “Race Betting (Page 10) is as follows:

“Sports Betting” (Page 12) is as follows:

The important issue in respect of “Sports Betting” is what a “Sporting Event” actually is. “Sporting Event” (Page 12) is as follows:

So here we are in a World environment, where betting competition is about to increase dramatically due to increased betting events and Blockchain betting solutions, but we (NZ, NZ Racing and NZ Sports) are restricting ourselves to racing bets and sporting bets, or a combination of both (why?) where the sporting events are events covered by (a), (b) or (c) above.

If this Bill is meant to be relevant for the next 20 years, why are we supporting legislation that restricts our potential competitiveness and betting revenue to racing and sports contests only, where a registered NZ sporting authority has signed an agreement with TAB NZ? Is that the future we have to look forward to?

Did you know that virtual gaming and sports are currently the fastest growing betting events? Recently a virtual team game commanded an estimated $1.2b of bets...a single event.

If you had a betting account with a betting service provider who only offered a small proportion of the betting opportunities available, and you were approached by a much larger betting provider who offered all the betting options, which betting service provider would you probably become loyal to?

If that large betting service provider could offer the alternative bets to NZ customers due to an outsourcing agreement, but the returns of these bets couldn’t be captured by NZ racing or sports because they are not registered agreements in NZ, then why wouldn’t you open the gain to allow every bet that was legally a bet and not just bets on racing and sports?

In addition, if you entered into an outsourcing agreement with a larger betting service provider, and were able to provide all types of bets and not just the conventional bets whose appeal is currently diminishing, would not the potential agreement be much more lucrative if you could offer all bets?

Please change the definition of a bet. Your comments would be appreciated.

Compared to Australians, for example, New Zealanders tend to have a more conservative view towards gambling and that is reflected in our legislation. Therefore, in our representations to Parliament, we need to strike the right balance between advocating new revenue for the industry whilst acknowledging some prevalent contrasting views.

The current legislative framework for gambling does make it difficult for the TAB to be adaptable and keep up with advances in new products compared to our competitors. This was a point made by Messara and one that we have continued to reiterate to the Government. 

The overall structure of gambling is determined by the Gambling Act 2003, which isn’t up for consideration in the Racing Industry Bill currently before Parliament. However, the Gambling Act is being reviewed by the Minister for Internal Affairs, Hon Tracey Martin, and we have been making submissions and representations to her raising many of the points you’ve made. 

The Government has included one provision in the Racing Industry Bill which we are supportive of in principle: this is a new approval mechanism would allow the TAB to offer products that would normally require a legislative change, subject to a range of tests being met, such as harm minimisation. We will be advocating changes in the Bill we believe will make this mechanism more enabling. If our changes are implemented, we are confident this will help ‘move the ball down the pitch’ but will only go so far. We will continue engaging with the Government on their broader review of gambling in New Zealand and advocate many of the points you’ve raised. 

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Many thanks to Dean for responding to these questions and to you Scooby for facilitating that process.

I'm particularly pleased to learn that the 20% net profit increase required to sustain the balance sheet with current funding distributions has now been maintained for the first 6 months of the current FY.

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On 12/28/2019 at 4:23 PM, scooby3051 said:

Just ask the questions and lets see where we all end up...cheers.

My question was the only one not asked and answered. I wanted to run a small bar and be the bookie. 

You could do this now but I wanted it to be legal. 

A simple query..... 

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Thanks Dean and to you Scooby for facilitating this. I too am pleased to hear that we are on target for a 20% increase in profit based on the first 6 months turnover. It surprises me to hear that we have achieved that target, I wonder if there could be some analysis of how the target has been achieved and what impact it will have on each of the 3 codes

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2 hours ago, scooby3051 said:

keep distribution at least at the same level, but don’t deteriorate the balance sheet.

Thanks for your replies Dean.

Equity aint looking pretty

July 2017 $69.3m

July 2018 $53.5m

July 2019 $24.9m ( against a budget of $60.3m)

The outcome of the balance sheet not deteriorating further is, as you suggest, "challenging"

Substitute John Allen for the late Terry Jones and cast yourself as John Cleese and there's some similarities emanating!

 

 

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