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Barry Lichter

Axe set to fall on ​​​​​​​over-the-counter bets at our racetracks

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Continue to keep getting it so wrong . Feck me M'kenzie was supposed to be the man to turn it around but instead he's kicking the man while he's down . Another whole raft of punters disenfranchised out of racing . I personally believe with the announcements of recent days this is the beginning of the major centralisation of NZ racing . 

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James Mackinnon of the Auckland Trotting Club put it correctly.  The on course terminals do not cost RITA a cent.  The operators' wages etc costs and terminal hire are paid for by the Clubs.

Dean McKenzie's latest outburst brings to mind what Groucho said of Harpo in a Marx brothers' film;

"Harpo is the brains of our outfit.  Now you know what kind of an outfit we've got." 

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McKenzie is right one way but wrong in another.

The current oncourse terminals can all be carted off and dumped. Asking oncourse public to bet on their mobile whilst OK with some is hardly conducive to an enjoyable day out.

This is an excellent opportunity for clubs to stake out their own territory in the wagering market. RITA under no circumstance must be given exclusive rights. Therefore NZTR must not allow any hasty contracts after all wasn't there a time NZTR represented the Clubs rather than just rubber stamping anything coming from RITA/Racing Board/TAB

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Tote packs its bags - Axe to fall on over-the-counter raceday bets in new cost-cutting move

Barry Lichter

By Barry Lichter • 13 May 2020 

Could it get worse?

When RITA confirmed this week it would not bring back its AM and FM radio network, one disgruntled punter posted the following on Facebook:

“Bad move no radio coverage of racing - that’s a big promotional tool gone.

“Imagine saying in the 1980s to your racing mates that one day the weekly race form guides, phone betting and radio coverage will all be gone and the TAB CEO will only think a double comes in a glass with ice. They would say you have lost the plot.”

Well, it just gets worse.

Drastic cost cutting by the TAB is poised to see punters on course unable to place bets over the counter and a halt to all phone betting.

In a letter to industry organisations yesterday, the same day Government announced a $72.5 million emergency rescue package, Racing Industry Transition Agency executive chair Dean McKenzie outlined some of the far-reaching measures it is proposing to make.

By far the most contentious will be RITA’s plans to move away from providing manual betting facilities at the country’s racetracks - where people hand over their money to an operator, call their bets, and are given a ticket, a common practice all around the world.

Instead it is proposing punters use self service betting terminals or their phones to place bets via the TAB app.

Racetrack punters have enjoyed betting over the counter with tote operators for decades.Racetrack punters have enjoyed betting over the counter with tote operators for decades.Punters would not be able to even use Touchtone betting on their mobile phones because RITA is also planning to close the phone bet betting channel for good.

RITA says it will work with the codes to “present a specific on course solution for marquee events”.

McKenzie says the decision to propose these changes has not been taken lightly.

“However, the level of savings required has left the Board and management team with no choice but to cut costs across all areas of the business.”

Earlier this week, RITA got specific about its 30% cost-cutting of staff, a slew of Trackside staff, including commentators, frontmen, camera operators, managers and producers to be axed.

And yesterday it was revealed RITA was just three days away from defaulting on $26 million of debts it had been unable to pay.

About half the country’s racetracks already have a few self service terminals.About half the country’s racetracks already have a few self service terminals.

Club managers worried

Racing club managers today expressed considerable concern about the betting changes which RITA is looking to introduce when people are allowed back on course under COVID-19 alert level one.

Auckland Racing Club executive general manager of racing and operations Craig Baker said it would take three to five years to phase out on course betting terminals.

“You couldn’t cut people off at the knees overnight like that. As a club we wouldn’t be looking after our customers if we did that.

“In time, if you could put in enough self service terminals it might work, but we have only 14 to 16 at Ellerslie at the moment. But I think we’d need some tote terminals as well, especially on big days like Boxing Day (when so many first-time racegoers attend).”

Baker said while the number of people betting on mobile phones at the track has increased by 20% in recent years, newbies couldn’t transition straight away. It was no quick process to open a TAB account and even free bet incentives might struggle to get enough people to sign up.

Andrew “Butch” Castles … five years would be a realistic goal.Andrew “Butch” Castles … five years would be a realistic goal.

New Waikato Racing Club chief executive Andrew Castles believes five years would be a realistic goal for weaning punters off betting with on course operators.

“In a lot of ways it makes sense, certainly on lesser, industry days when fewer people are on track but you certainly couldn’t go bang, like that.

“Clearly there are challenges but if you could ramp up the self service terminals, and have mobile ones, you might get there. But clearly there would be some days when we’d require on course servicing with terminals.”

Jamie Mackinnon … backward step.Jamie Mackinnon … backward step

.Backward step

Auckland Trotting Club vice-president Jamie Mackinnon said removing the terminals on course would be a backward step.

“We would definitely lose revenue. The average age of our members is 60 and, while there’s nothing wrong with new technology, we shouldn’t be forcing it on them.

“We would try to find ways to make sure we could keep tote operators.”

Staffing the terminals doesn’t cost the TAB anything, individual racing clubs pay for that. The TAB’s sole expense on raceday is the control van which links the track to the betting host.

Antiquated machines

It’s the betting machines themselves that are the problem. Like so many other parts of its business, RITA is suffering from years of under-investment by its predecessors, the terminals largely worn out. Increasingly, it is becoming a losing battle for those fixing the machines to keep them alive.

Throwbacks to the 1990s, they were given an upgrade in 2005 but now urgently need replacing.

But, while it is believed RITA has considered replacement options, it doesn’t have the money.

Industry insiders also fear many casual punters enjoy the experience of engaging with tote staff, and being given a ticket, far more than they would being confronted with the spinning wheel death on the TAB’s app and website which has been flakey at best since its introduction.

Many of the country’s racetracks are also in areas where mobile phone reception is questionable. And even in the cities, getting an internet connection on marquee days is often impossible.

Tens of millions of dollars of bets were made through TouchTone.Tens of millions of dollars of bets were made through TouchTone.

Huge blow for older punters

Despite a massive migration of punters using the internet to bet, axing the phone service will be a huge blow to many people.

While the TAB stopped taking phone betting through an operator on August 1, 2016 (except for VIPs and people with medical conditions) the TouchTone service continued to prove popular with millions of calls logged.

It has been a happy place for many of the mostly older people who like to bet small amounts - when the TAB earlier raised its minimum phone bet to $10, traffic through TouchTone doubled.

But the number of people betting through TouchTone has steadily been shrinking - in 2016 only 10,000 of the TAB’s then 250,000 customers regularly used it - and it, too, is now on its death bed.

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When we started to read of 30% job cuts I don't think many of us thought it would be the front line staff: race commentators, camera crew, and now tote operators. I think we were all hoping it would be the parasites that no one would even notice missing. Getting rid of 30% of the lower paid staff will only reduce the wage bill by about 15%, or less.

I suppose next it will be the jockeys and trainers shown the door. Surely they aren't all that important or relevant any more. 

We have yet to read of a single overpaid no-hoper given the boot.

When most organisations seriously restructure the first thing they do is get rid of a whole tier of overpaid senior management. The level below can almost always step up to do their jobs for considerably less money.

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The decisions being made are so bad i cannot comprehend that anybody who knows racing would do this.Giving up phone betting lost 20% of their 

customer base this will be with no on course betting be another 10% .Nobody who is in business for themselves would do this, wind the buggers up and start again

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I just checked to see if today is 1 April.... but no it isnt.

Nowadays, I usually just go to the Hawkes Bay carnival and the big jumps days but dont think I'll even bother with those anymore, will just stay home and save the entry fee and watch it on TV.... hopefully it'll still be on TV.!!

Will miss the hot dog, chips and can of coke though...

Biggest day of the year is Karaka Millions so wonder how everyone will get on congesting the TAB Mobile App or using the Self Service type terminals where they often pack a sad. Going to be great fun when a newbie makes a muckup on a self serivce terminal and you've got heaps of irrate punters waiting in line.

Hope the BGP boys get looked after properly.

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I'm only a dumb punter ,but with all the crap they are going on about which it is the final throw of the dice even all the stupid ideas that they are saying ,no one is standing up and saying"this is shit talk do you know what you are talking about ?'   No Baker and Castles say oh it could take 5 years to wean punters off termnals yeah no one will be bothered in 5years .  This is a perfect time for a forward thinking club like Avondale  , to say we will get bookies in go and get  f###ked  Cheers BH

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The decision on betting terminals at the racetrack should have been made years ago. I honestly thought when the "platform" decision was made that included a new solution to oncourse betting. Just shows how pathetically inept the previous board and management were at the TAB.

I think actually MCKenzie's war on the antiquated machines is the first real good step he has taken. But he has not presented a solution.

Now is the time for clubs to start thinking for themselves away from RITA.

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15 minutes ago, Boss Hogg said:

I'm only a dumb punter ,but with all the crap they are going on about which it is the final throw of the dice even all the stupid ideas that they are saying ,no one is standing up and saying"this is shit talk do you know what you are talking about ?'   No Baker and Castles say oh it could take 5 years to wean punters off termnals yeah no one will be bothered in 5years .  This is a perfect time for a forward thinking club like Avondale  , to say we will get bookies in go and get  f###ked  Cheers BH

Bookies on course, now that would be fun. I'd be back on course in a flash...

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RITA's advisory sent out yesterday said one of the proposals was to "close the phonebet betting channel.”
Head of Public Affairs Ian Long is now saying TouchTone betting won't be impacted, which is confusing given only a few people these days get to bet with an operator - some VIPS and those who are impaired.

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25 minutes ago, Boss Hogg said:

I'm only a dumb punter ,but with all the crap they are going on about which it is the final throw of the dice even all the stupid ideas that they are saying ,no one is standing up and saying"this is shit talk do you know what you are talking about ?'   No Baker and Castles say oh it could take 5 years to wean punters off termnals yeah no one will be bothered in 5years .  This is a perfect time for a forward thinking club like Avondale  , to say we will get bookies in go and get  f###ked  Cheers BH

Don't use Baker and Castles as examples of persons who should/could stand up and speak out , iv'e had plenty to do with both in regards racing matters , neither are forward thinkers of the industry , just another couple of sausage roll eaters in my opinion .

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2 minutes ago, nomates said:

Don't use Baker and Castles as examples of persons who should/could stand up and speak out , iv'e had plenty to do with both in regards racing matters , neither are forward thinkers of the industry , just another couple of sausage roll eaters in my opinion .

Hi Nomates yes I worded it badly  what I meant was they would rather go with the flow than say anything  .Cheers BH

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One of a few joys of owning a horse is to have a decent punt on it  - and it wins. Stuff a few grand in the wallet and it feels great. Thats your walking around money for ages.

So you phone bet instead and you want to draw it out. It goes into your account and the bean counter says , "where did that come from"The Taxman wants to know what it is. Nothing beats folding.

iI I cant bet with cash and collect cash I will have no more to do with the game.

D McK cant be that big a fool, its the Clubs pay the tote staff. No this will be an effort to take some cost out of Clubs. And then introduce a sneaky transfer of costs from Rita/ TAB for say the product they claim to own.

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Nerula puts is beautifully.  You have that $3000 in your pocket and feel real good.  You don't think about the $12000 that the sixth share in the horse has cost you so far.  You have those thirty Lord Rutherfords and you want to get a share in another horse.

It is illogical, but that's the way us horse owners think.

Whoever came up with this idea has absolutely no idea of how racehorse owners think.  And that is the sort of person that is running our show.  Mind boggling.

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this is the way everythings going anyway it will only be a matter of time before we cant use cash etc because it might spread the  virus and start another scamdemic. lines at the tote social distance and all that its already started theirs an ice cream shop at wgnt airport that doesnt exept cash ben and jerrys and that was before the virus its already happening.  over the counter bets over the counter anything probably wont exist for that much longer maybe another 10 years if were lucky probably less so no big deal. i will be sad to it see it go i can remember waiting by the tote as a young fella for dad but thats the reality

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34 minutes ago, Tauhei Notts said:

Nerula puts is beautifully.  You have that $3000 in your pocket and feel real good.  You don't think about the $12000 that the sixth share in the horse has cost you so far.  You have those thirty Lord Rutherfords and you want to get a share in another horse.

It is illogical, but that's the way us horse owners think.

Whoever came up with this idea has absolutely no idea of how racehorse owners think.  And that is the sort of person that is running our show.  Mind boggling.

i haven't seen anything that cash bets wont be accepted. Cash betting means getting a $3000 betting voucher (I haven't seen an owner putting that much on anyway. i have a trainer though). Do you really thinks its practical for the operator count the $3000 whilst others are waiting. Keeping the operators and machines going for the last 10 years has been the best example of mismanagement. Why do you think casinos use chips rather than cash?

What will happen is just what casinos do. You get your chips and bet via machine without an operator. At the end of the day you cash in your chips, voucher or transfer to betting account or bank. 

If you want your operator terminals in the future I suggest try the museum.

 

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