Jimmie says | Horse racing needs a good break to compete

THE January 2010 Fair Trading Commission (FTC) study, ‘The Competition Implications of Commingling Arrangements on Local Horse-Racing’, not only concluded that commingling agreements, such as that which was being sought by Richard Lake’s Fortune Gaming, “does not necessarily represent a threat to the local horse-racing industry”, the commission outrightly scolded Caymanas Track Limited (CTL) for its lack of technological innovation.

“CTL’s profitability, ultimately, will depend on, among other things, the repackaging and marketing of existing services as well as a possible introduction of new services. Competition in an open-market framework provides the proper incentives for innovation to take place,” stated the paper prepared by Competition Bureau Chief Kevin Harriott, Ph.D

Pointing to an earlier period of success, ironically under a board on which Lake had served, the study noted “major innovations in the pool-betting service” : (i) In 1989, CTL acquired a new totalisator - an automated system which runs parimutuel betting, calculates payoff odds, displays odds and produces tickets based on incoming bets, adding, “during the period 1990-1996, this system allowed CTL to deliver products which are more suited to its punters as it withdrew older products and introduced a number of novel ones; (ii) CTL introduced simulcast (i.e. simultaneous broadcast) services whereby it offered its punters the opportunity to bet on overseas races”.

Digressing a bit, note that no mention was made of the often-promoted farce that it was the system of racing - claiming and conditions - introduced in 1993 - that had led to the turnaround in CTL’s fortunes. In fact, the rating and handicapping system was successfully run for a longer period on the new tote, generating record profits, before the claiming and conditions system was set loose in the hen house.

Back to the FTC’s scolding of CTL, which cited ‘Advance Deposit Wagering (ADW) and Internet Betting (IB)’ as innovations not being explored, post-1996, adding: “There may well be other segments of the gaming sector which remain untapped, and it is only through innovation and the exploration of new ideas and technological advancement, that will allow these segments to be discovered and marketed.”

FINANCIAL WINDFALL

Fast-forward a decade after the 2010 paper. Privatisation four years ago saw CTL making way for Supreme Ventures Racing and Entertainment Limited (SVREL), which rolled out its MBet platform, allowing users to wager from their mobile phones and online. However, a raft of regulations remains in place, hindering the horse-racing industry from reaping the financial windfall of technology being enjoyed by lotteries and sports betting.

First, opening an MBet account still requires presenting almost all the documents required to start a savings account at any financial institution, explaining the number of Jamaicans without bank accounts.

Betting, Gaming and Lotteries Commission (BGLC) stipulations such as government-issued identification, Tax Registration Number, proof of address (six-month-old utility bills or written confirmation by a justice of the peace), only omit one’s last three pay slips to prove affordability.

Second, a major untapped market, the potential female bettor, will forever remain so as long as a way is not found for some bets on horse racing to be sold in lottery shops - particularly wagers with multimillion-dollar payouts such as the Pick 4, Pick 5, Pick 6, and Pick 9.

Though part of the problem is platform-interface, different betting-gaming providers being reluctant to have their systems intertwined, which would take some coaxing from SVREL, the BGLC stipulates that any form of pool betting on horse racing must be shown live, with odds displayed and conducted at premises approved as an Off-Track Betting parlour, which comes with jingles and bells such as satellite feed, bathroom facilities, etcetera, as opposed to a hole-in-the-wall lottery outlet.

However, there is a major difference between exotic bets covering from a minimum of four, up to nine races, as opposed to race-by-race wagering. Off-time odds, though indicating the dividend payable in single-race pools (win, place, exacta, quinella, trifecta, superfecta, and hi 5), do not determine the payout on the Pick 4, Pick 5, Pick 6, and Pick 9.

For these exotic wagers with multimillion-dollar payouts, it is the conclusion of the bet that matters, which can be packaged and broadcast immediately after to satisfy authenticity. Hence there is absolutely no reason for the BGLC not to entertain the idea of amending the strict OTB requirements, enabling SVREL to enter arrangements with service providers and shop owners, etc, to market and sell their Pick 4, Pick 5, Pick 6, and Pick 9 bets to a far more diverse audience, particularly the female bettor.

However, for horse racing to attract a wider audience to its exotic wagers with multimillion-dollar payouts, SVREL must make some bold decisions, which will be the topic of next week’s column.

Ainsley ‘Jimmie’ Walters has been covering horse racing for more than 25 years for the Gleaner Company (Media) Limited and is the editorial and production coordinator for the Track And Pools race form.