Stakes -Phumelela

The contribution of TAB betting on sport, notably soccer, to the stakes pot for 2012-13 has increased to R13.1 million - R4.1 million or 45% more than in 2011-12.
There have also been significant increases in the contributions flowing from royalties from Gold Circle and international jurisdictions (up 26% to R18 million), Phumelela subsidiary Betting World (up 41%) and limited payout machines (up 35%). Phumelela’s Isle of Man tote operation contributed to prize money for the first time with R2.4 million being yielded from that source.
The massive R118 million contribution from TAB or tote betting on local and international races was only slightly up on the previous season, while the contribution from bookmakers increased 9% to R13 million.
The full breakdown of the various revenue sources for the 2012-13 stakes pot is attached.

SUBJECT: Stakes to increase in Phumelela regions in 2013
DATE: Saturday 8 December 2012
RELEASED BY: Phumelela Gaming and Leisure Limited

The total amount available for prize money (the stakes pot) in Phumelela racing regions in the current 2012-13 racing season is R174 million – R10.5 million or 6.4% more than last season – and this will result in stakes increasing across the board from 1 January 2013.
Prize money is determined by a stakes formula agreed between horseracing and tote betting company Phumelela and The Racing Association (RA), which represents owners, and is derived from various sources.
As always tote betting is far and away the biggest contributor to the stakes pot with R131 million (68% of the total) flowing from TAB betting on local and international races and sport (principally soccer). By comparison the contribution from bookmakers is a meagre R13 million (7%). This excludes R2.7 million derived from fixed-odds betting from Phumelela subsidiary Betting World.
The stakes pot for 2013 encompasses the Thoroughbred Horseracing Trust contribution and the usual deductions for the South African Jockeys’ Academy, riding fees and appearance money to trainers for Sunday and night race meetings.
In applying the stakes increases, Phumelela and the RA agreed the following for feature races:
* The stake of the SA Nursery (upgraded to Grade 1 status from this year) will increase from R500,000 to R1 million from 2013, as per the Phumelela-RA policy for Grade 1 races.
* On the Highveld, the stakes of Listed Races will increase from R135,000 to R150,000 and Grade 3 races from R165,000 to R175,000.
* In the Eastern Cape, the stakes of Listed Races will rise R5,000 or R10,000 to R130,000.
* In the Northern Cape, the stakes of all non-black type feature races will increase from R90,000 to R100,000.
The balance of the increase in the stakes pot will be allocated to minor races in the three regions in varying percentages with lower division handicaps enjoying a bigger increase.
Racing Association bonus-race stakes have been taken into account, as well as extra stakes arising from “split” races on the Highveld and in Port Elizabeth, in which the number of final acceptors justifies splitting a race into two events.
Full details of the increases on the Highveld and in the Eastern and Northern Cape are attached.

If Phumelela can dismissively describe revenue sourced from bookmakers as 'meagre' why don't they just adopt their normal apartheid styled approach to business and ban bookmakers altogether? As happened with betting exchanges.

Then those those of us who prefer fixed odds and dealing with organisations other than the operator's uncaring handmaidens could have our betting tax deduction reduced to 0% from the current 6% when they all continue trading as bucket shops!

Lol.