Advocates think the Tote are breaking the law?

On 9 September 2014, attorneys acting on behalf of the Gauteng, KZN and Western Cape Bookmakers’ Associations issued notices to the KZN, EC, Free State, Gauteng, Limpopo, Mpumalanga, North West, Northern Cape, Western Cape and National Gambling Boards as well as the National Lotteries Board.

The notices contain the legal opinion of Advocates David Unterhalter SC and Max du Plessis, that the totalisator operators are unlawfully operating a sports pool betting operation in contravention of the Lotteries Act 57 of 1997 (“the Lotteries Act”).

In effect, the assertion is that the operating of sports pools such as those currently being offered by Phumelela, Kenilworth Racing and Gold Circle (ie betting on anything other than horse racing) is being done unlawfully and that any licences issued by the Gambling Boards to the sports pool operators falls to be withdrawn as per the Constitutional Court’s decision in MEC for Health, Eastern Cape and Another v Kirland Investments (Pty) Ltd [2014] ZACC 6.

The notices request the Gambling Boards to prohibit the perceived unlawful betting activities and to withdraw any gambling licences that they may have issued that purport to authorize such activities. The letters have asked for a response within 7 days of the notice.

Interesting times!!!!

IF???? there is substance to this allegation and it leads to no more(or even a suspension of) soccer pools to subsidise local racing, does "P" have to try to re-focus and work out how to turn it into a profitable business or accept defeat and get out?

Maybe it would be the best thing to ever happen to local racing, in the long run, as I am told that "P" Exco meetings regard local racing as relatively low priority!

I have been saying for a long time that racing solutions have to be found rather than subsidising racing through diversified operations.

The only way that racing could flourish again is by getting more customers involved directly in racing as this will place the betting operator on a far more sustainable path.

Get serious about racing by seeing the opportunities that exist of unlocking new value from a brand new customer base and a racing model that value customer growth over purely short term turnover gains.

In many ways the current racing model is like a turbo prop engine in the aviation industry, it has reached a pinnacle in it's development, functions reliably but cannot be developed any further. Racing needs a paradigm shift, like the jet engine to reach new heights.

Pity that all of this seems lost on those tasked with racing's caretaker role.

This is a fascinating development, I just wonder who the real casualties of this war will be? PHM have certainly brought this upon themselves, what comes around....they could have reached an accord with the bookmakers a long time ago through quiet diplomacy and whilst this "illegal" issuance of sports pools licenses is not a related issue it is the outcome of the war.

Phum shares down to 1850 from 1895 last night = 2.4% drop
96000 shares traded already (vs 15000 yesterday)

FOR A PUBLIC COMPANY THAT THEY ARE...THEY RUN THEIR OPERATION AS IF ITS A CORNER TUCK SHOP.....its seems they love confrontation...not realising by just the mention of this word(whether right or wrong)....it has a major affect on them ...who is their spin doctor that gives them this advice,or are there just willy nilly accept advice from all and sundry....its shocking how its run....they dont seem to be running this tight ship,and it seems they are open to attack....perhaps,its not so amazing after all when u analyse it....its because their stratedgy had long been....LETS SWEEP IT UNDER THE CARPET"attitude...whilst this may be a short term solution...the long term rammifications, will be to their detriment

Looking a little closer, the company could be mistaken for a joint venture subsidiary of Steinhof and Investec, and a number of the executives look suspiciously like they were "seconded" to the "racing division"

Knowing the difficulties that the labour laws bring, it may explain the apparent transfers............ask yourself why!!!
I know what I think.........................lol