Durban July Sweepstakes example on totes takeout

let's copy the tote and pro tote views

R500 per person to join the sweepstakes

if we get 20 entries that's (R500 × 20 ) = R10 000

I'll host it and take 25%. yes R2500 for me

the 20 entries can split the r7500

please don't worry about me , I will have no risk but get R2500 / 25%

explain that to a youngster wanting to join the tote

Mr A, your example does put things into perspective.

However the principle of a takeout is not the problem as there is a definite cost to putting on the show as far as local operators are concerned.

The actual issue is about what percentage could be deemed fair in relation to the actual costs of staging the show and an acceptable level of profit.

If you have a winner takes all pool the prize would still be R7500/500 and this has to make sense from either a risk or risk/entertainment perspective.

This is the crux of the matter, perceived value and acceptable risk versus return and this is what needs to be addressed.

In bigger pools this would be less of an issue than in pools that are in decline as it becomes less attractive as the pool gets smaller.

We should not knock the principle but rather the lack of effort that goes into attracting new interest and the measure of incentive for getting involved.

MR ARROGANT wrote: let's copy the tote and pro tote views

R500 per person to join the sweepstakes

if we get 20 entries that's (R500 × 20 ) = R10 000

I'll host it and take 25%. yes R2500 for me

the 20 entries can split the r7500

please don't worry about me , I will have no risk but get R2500 / 25%

explain that to a youngster wanting to join the tote

So the teller who takes your wager, how do they get paid without a takeout. How does the stakes get funded to run the show. Yeah the take out is high, should be lower in my opinion.

Oh btw its called Parimutuel betting....That answers your question.

Even at the roulette table if you place a bet on every number you will still lose. Proven fact!!!!

MR ARROGANT wrote: let's copy the tote and pro tote views

R500 per person to join the sweepstakes

if we get 20 entries that's (R500 × 20 ) = R10 000

I'll host it and take 25%. yes R2500 for me

the 20 entries can split the r7500

please don't worry about me , I will have no risk but get R2500 / 25%

explain that to a youngster wanting to join the tote

Unless you collecting cash payments a bank charge will be applicable. The paper you use to draw the numbers cost money. Even if you do it electronically you need a PC. PC cost money!!!!

naresh wrote: Even at the roulette table if you place a bet on every number you will still lose. Proven fact!!!!

you will lose 2.7% with that method on roulettes

big difference between 2.7% and 25%

if you back every horse on the tote , how much do you lose ?

the casino also got staff to pay

MR ARROGANT wrote:

naresh wrote: Even at the roulette table if you place a bet on every number you will still lose. Proven fact!!!!

you will lose 2.7% with that method on roulettes

big difference between 2.7% and 25%

if you back every horse on the tote , how much do you lose ?

the casino also got staff to pay

That the point. The house needs to cover their overheads.

Please tell me if there is 10 horses in a field and the winner pays R20, how will I lose in that instance ?

naresh wrote:

MR ARROGANT wrote: let's copy the tote and pro tote views

R500 per person to join the sweepstakes

if we get 20 entries that's (R500 × 20 ) = R10 000

I'll host it and take 25%. yes R2500 for me

the 20 entries can split the r7500

please don't worry about me , I will have no risk but get R2500 / 25%

explain that to a youngster wanting to join the tote

So the teller who takes your wager, how do they get paid without a takeout. How does the stakes get funded to run the show. Yeah the take out is high, should be lower in my opinion.

Oh btw its called Parimutuel betting....That answers your question.

I watched the show and here's the spoiler

punters was moaning about small fields in cape town

punters was complaining about the turf track at Greyville

punters was complaining about the pull up area at the polytrack

punters complaining about the poor service they receive from the tellers at the totes

punters complaining about sectional timing
plenty more 'spoilers ' for the show

I'm sorry but I can't justify 25% take out for an amateur Show.


thanks for the Google search on Parimutuel

naresh wrote:

MR ARROGANT wrote:

naresh wrote: Even at the roulette table if you place a bet on every number you will still lose. Proven fact!!!!

you will lose 2.7% with that method on roulettes

big difference between 2.7% and 25%

if you back every horse on the tote , how much do you lose ?

the casino also got staff to pay

That the point. The house needs to cover their overheads.

Please tell me if there is 10 horses in a field and the winner pays R20, how will I lose in that instance ?

naresh you seem pro tote

the tote out 25%

you're very happy if the winner pays
R20 wins

but what about the R1 place returns

that's right , you risk money on the tote without making profit but the tote still takes their 25% cut

let's make this really really simple

I put R10 000 places on a horse

the pay out is for example R1

I risked R10 000 and got ZERO profit back

from my investment of R10 000 the tote takes R2500

so I make no money while the tote makes R2500 risk free money

I rest my case

MR ARROGANT wrote: let's make this really really simple

I put R10 000 places on a horse

the pay out is for example R1

I risked R10 000 and got ZERO profit back

from my investment of R10 000 the tote takes R2500

so I make no money while the tote makes R2500 risk free money

I rest my case

Lets make this real simple...

The bookmakers are betting on the toss 9/10. Why not even money ?

A 2 horse race why are the two horses not even money. Or a 3 horse race 2/1 every runner respectively.

Mr A you cannot be more wrong.

If you had no overheads then I agree with you fully.

However the operator puts on the show and if not a cent is punted worst case scenario the overheads remain the same but the risk is 100%.

Their risk is not in paying the punter but in the punter taking or not taking a bet but it remains a risk.