PHUMELELA GOLD ENTERPRISES MEDIA RELEASE: Betfair

Dave so it sounds like the compromise spoke about previous = why not like aussie dollars - make the same w/rand sa racing = goes into the 'local tote' so that SA racing benefits and 100% legal!!!

ps sounds like the 'real' reason for recent share dealings!

Beware a wolf in the clothing of a sheep.

It's like saying Investec cannot operate in the UK...or team Valour cannot run their horses in Dubai..

It's not BETFAIR thats the issue...
Phumelela never had a problem with any e-market exchange such as betfair..
As a JSE LISTED business, Phumelela cannot afford to have a problem with BETFAIR..
Shareholders will have management fired....for thinking backwards...

It makes good business for TAB to be a link on BETFAIR..just as TAB is a link on INTERBET..

However the BOOKMAKERS were objecting at Phumelela and the Gambling board..
The bookmakers are TRYING to protect their investment...

Many have spend the last 10 years building a business at some venue, such as Northcliff corner....Marble Arch at Turfontein...Randburg Waterfront..

The capital investment for the restaurant, bar, tv's, generators, PC desktops, Printers, Servers, ADSL lines etc have been R1,000,000's

Most of these business receive 4% kickback from Phumelela (TOTE) per month..
Which equates to +R80,000 per month...TOTE Turnover of R2m per month..

SO, understand...Phumelela does not want to anger the bookmakers...they pay them up to 4% on TOTE turnovers..
Phumelela cannot run the risk of angering the bookmakers by allowing BETFAIR...

Phumelela being a Listed company..paying TAX...have a great deal of say at the gambling board...when Phumelela speaks, the gambling board listen..
If they dont...someone will be fired...SARS cannot afford to loose the Phumelela monthly TAX contributions...

Hence, the business model is build on bribery and backmail...
Phumelela pays 4% bribes to bookmakers....chemist..medicine..suppliers...R26..
Bookmakers are blackmailing Phumelela on betfair.....will not punt your product....
Reality is...bookmakers cannot exist without the R80,000 (4%) kickback from Phumelela...without the R80,000 per month...most will close down...
If they close down...Phumelela looses the turnover...
Phumelela turnover goes down....down goes the TAXES to SARS...down goes the SHAREPRICE....management at Phumelela gets fired...


THUS...the business model used by the bookmakers is wrong..
The bookmakers cannot survive, because of their current BUSINESS MODEL...
Everybody knows that....and THAT"S THE REASON FOR PLAN "B"....
BETFAIR is PLAN B....PLAN A is busy folding.....because the business model was wrong....

PS...ask the question...when are the gambling board going to hand out the free bookmakers licenses....

about 400 of them countrywide....?

BE....AA......EE.....perhaps as Joint Venture with BETFAIR...makes sense....

before 2010....before december 2009....

reality....the cartel is in a corner and will be broken...

How has betfair affected the bookies in the UK and Europe....?
Ladbrokes et al are still there and making a ton!!!!!!!

The thing most punters still prefer the bookies - don't want to be sitting in front of the cpu, alone - like the social.

Plus, lads/corals etc. have there own 'online' business - compete - bet in-running etc. so they are doing ok by all accts.