McAlister Report not to be mistaken with Messara Report

[shaneMcAlister 1,425]

This report differs from the Messara report in that it is looking at quick easy to implement changes that should be seen as favourable by the majority of stakeholders.  I believe it comes from a position of understanding the punters psyche.

Credit card 2.5% deposit

Currently any deposits made by a credit card incur a 2.5% surcharge.  RITA explain that this charge is to recover costs and is common practice for businesses.  While I understand this, I do not believe any competitors (bookmakers) charge this.  It annoys punters and leaves a bad taste in their mouth.  I hear RITA’s argument that you can make a bank transfer and avoid these charges.  However a bank transfer while it usually occurs in the hour is not immediate and many a punter is making a last minute decision to have a bet, i.e a tip is rung through. 

Solution

Drop this charge immediate, it will cost less to drop this than the current promotions that the TAB are currently running.

$1,000 transaction limit AML implications

The $1,000 transaction limit is not fit for purpose.  While I can understand that this is an Internal Affairs rule it still needs a strong push back from RITA as this is not practical.  The level in Australia is $10,000 and the NZ casino level is $6,000.  Why is NZ racing be treated so differently?  I also think the limit should be based on the placed bet not the return.  If I give a homeless man $1 and he puts it on his lucky three numbers and strikes a trifecta paying over a $1,000 then he must prove his ID to ensure he has not involved in money laundry.  This is ludicrous as the stake was only $1.

Solution

At the very least make the limit relate to placed bets not returns.  Then aim to have racing treated like NZ casinos with a $6,000 limit.

Promotion of oncourse turnover

This game is all about the horse, and how the public can fall in love with the racehorse.  For this to occur they need the oncourse experience.  I believe that RITA not only does not promote on course attendance but actually promotes you to bet offcourse with ads like “bet from the comfort of your own couch” etc  In years gone by you use to be encouraged to punt oncourse with oncourse trebles etc.  Nowadays you get preferential treatment by betting on your device at home.  Regular Saturday promotions where if your horse runs 2^nd or 3^rd you get money back, but not if you bet on course.   On Derby day in Australia the TAB app on your device recognized if you were oncourse “on venue” light came on and oncourse punters got promotions that off course punters did not.  The promotion on the day was money back if your horse finished in first 5 but did not win up to $50.

 

Solution

Start promotions for oncourse punters only.  Does a jackpot day still have merit, it works with Lotto our competitor.

Capturing device betting figures

Currently racing clubs get 8.5% of oncourse turnover, however this figure only represents what goes through the tote operators.  It does not capture on course punters who use their devices.  The device usage is growing at the expense of the tote operator usage, therefore the payout to the providers of the race meeting are receiving less.

Solution

Capture on course betting done through devices.  This is not difficult.

[Aaron Bidlake 760]

Trot on Shane, too many good ideas in one post for our industry here. 

[Aaron Bidlake 760]

Just out of interest how were things done before the TAB as we know it today. 

Would bookmakers who come on course pay a fee to the club to run there business there on that day and that money was what went towards stakes and running of the club? 

[shaneMcAlister 1,425]

 

2 minutes ago, Aaron Bidlake said:

Just out of interest how were things done before the TAB as we know it today. 

Would bookmakers who come on course pay a fee to the club to run there business there on that day and that money was what went towards stakes and running of the club? 

Bookmakers (the oncourse ones) battle in todays age, unless it is a real big meeting like Ascot or Cheltenham.  Oncourse booking makers in Australia have it tough.  The TAB in NZ is a monopoly (legal), that could still play to our industry benefit if it was efficient and wanted to be really competitive.  I personally think the offshore leakage is huge.  I back with NZ TAB(try to use this first but difficult sometimes...)  but also with others.  The last domestic Saturday meeting in NZ was not priced up till Friday at 2pm, when they have said they will always price these up on Thursday at latest.  Australia (copied of course) was priced up before our domestic market.  I enquired about this and was told they were too busy.

A horse in race 7 at Matamata had a 2kg (Yanagida) claimer on it, then before the race it was changed to a 3kg claimer (Chelsea).  I thought they change had to be like for like, there were 2kg claimers available.  This can be a big swing for punters and makes it hard to take our product seriously.  Punters backing for the previous 24 hours did not a 3kg claimer would be riding the top weight.

 

 

[Gruff 2,800]

 I also think the limit should be based on the placed bet not the return.  If I give a homeless man $1 and he puts it on his lucky three numbers and strikes a trifecta paying over a $1,000 then he must prove his ID to ensure he has not involved in money laundry.  This is ludicrous as the stake was only $1.

Solution

At the very least make the limit relate to placed bets not returns.  Then aim to have racing treated like NZ casinos with a $6,000 limit...........

One could argue the money could be laundered using serious multiple $1 units ?  Unlikely but hey 

[Leggy 4,084]

Shane, just a suggestion but how about converting the above into "why not" questions for Mr. Saundry and posting them in the Rita Questions thread?

Or even simpler just repost in that thread with a question asking BS to comment.

[Leggy 4,084]

3 minutes ago, poundforpound said:

2.5% credit card surcharge common in all businesses !! 
Not something I’ve come across in the hospo game but I’d love to introduce it 

You could add a $10 per person surcharge for seating in case some of them don't spend any money?

[shaneMcAlister 1,425]

20 minutes ago, poundforpound said:

2.5% credit card surcharge common in all businesses !! 
Not something I’ve come across in the hospo game but I’d love to introduce it 

I don’t know any other bookmakers that do it.   So it is not common in the industry they are competing in. 

[chiknsmack 488]

I'm pretty sure the charge is $2.15, not a percentage. In the last month or so I've deposited $200 and been charged $202.15 (as per my bank statement), then deposited $800 and been charged $802.15.

It may have been a percentage a while ago when they first started accepting cc deposits, from memory.

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It would be possible for the clubs to offer rebates to oncourse punters. Have punters turn in all of their tickets at the end of the day and give them back 5% of their turnover as a TAB voucher. This would make up for the complaints about entry fees to the course; pay $20 to get in and don't bet, a day at the races costs you $20. Pay $20 to get in and turnover $400, get your entry fee back. Turnover $600 and you get a "free" beer or two too.

Sure it makes sense for the TAB/NZRB/RITA/whoever to do it and to capture bets placed on course via accounts using location sharing with the punter's device (so you're not forcing punters to bet at the tote windows, which is a PITA), but given how well their past few IT projects have gone I'm not super confident they could manage it without blowing another $50m we don't have. It's not like we have an existing relationship with the Australian TAB who do the same thing and could offer them a couple mil to let us copy their homework.

[shaneMcAlister 1,425]

13 hours ago, chiknsmack said:

I'm pretty sure the charge is $2.15, not a percentage. In the last month or so I've deposited $200 and been charged $202.15 (as per my bank statement), then deposited $800 and been charged $802.15.

It may have been a percentage a while ago when they first started accepting cc deposits, from memory.

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sorry you are correct. It is a flat fee. So if depositing $20 it is a 10% charge.