BETTING DIVISION
ANNUAL REPORT 2005/2006
INTRODUCTION
This report provides information on the performance of the Betting industry which is comprised of Caymanas Track Limited referred to as the Racing Promoter and eleven bookmakers.
THE BETTING INDUSTRY
Revenue for the financial year 2005/2006 was derived primarily from horse racing, promoted locally by Caymanas Track Limited who along with the bookmakers accepted bets on overseas races which were transmitted locally to various locations via satellite.
The Promoter’s operations were channelled through a comprehensive network of 62 Off Track Betting (OTB) parlours located island wide while the bookmakers’ revenue were derived from a network of 372 betting offices across the island.
The industry’s sales for the review period were achieved from 81 days of local racing, 307 days of simulcast racing by the Promoter and 52 weeks of overseas racing by bookmakers. The industry recorded growth of 8.25% with sales of $5.333B against the previous year’s total of $4.927B.
Table 1 provides a summary of the Promoter’s sales for the fiscal years April 2001 to March 2006. The promoter’s performance for the 2005/2006 financial year produced record sales of $3.358B, an increase of 11.09% over the previous financial year during which sales of $3.022B were achieved. Sales on local races progressed from $1.650B for the previous financial year to $1.857B, over the review period, the highest ever. The increase may have been caused by the number of local race days increasing from 79 in 2004/2005 to 81 over the review period.
Sales on simulcast races for the review period also showed a record increase for the five years April 2001 to March 2006, moving from $1.372B in the previous year to $1.500B for the 2005/2006 fiscal year, an increase of 9.34%. The average daily sales also increased by 8.63% moving from $4.499M in 2004/2005 to $4.887M over the review period.
Table 2 provides information on the bookmakers’ sales performance over the five year period April 2001 - March 2006. Bookmakers’ sales for the review period showed a 3.74% increase over the performance of the previous year moving from $1.904B in 2005 to $1.976B over the review period and it should be noted that this performance was only marginally below the $2.028B recorded in 2001-2002, the year that saw the highest total for the five year period 2002 -2006.
Sales on local races showed a 2.61% increase, moving from $1.102B in the financial year 2004/2005 to $1.130B for the review period. Recorded sales on overseas races were $837.270M, an increase of 5.82% over the previous year’s total of 791.197M. This performance was the best for the five year period, 2002 -2006. Notwithstanding the record increase for sales on overseas races, sales on other sporting events recorded a sharp decline of 30.89% moving from $11.566M for the financial year 2004/2005 to $7.993M for the year under review. This decline may be attributed to there being no major sporting event of significance to the betting public over the review period, excepting the annual wagering on American football and basketball.
Tables II and Figure I further details the industry’s performance over the five year period April 2001 to March 2006 and provide additional statistical information on the Promoter and bookmakers. The performances of both the Racing Promoter and bookmakers were encouraging and for the first time the industry recorded sales in excess of $5B.
Figure 2 shows that the Promoter continues to dominate sales generated within the industry and for the review period was responsible for 56% while bookmakers were responsible for the remaining 44%. Also of significance is the fact that sales on local races were responsible for 56.020% of the industry total, while sales on overseas races were responsible for 43.980% and sales on other sporting events 0.150%.
Table 3 provides statistical information on the performance of individual bookmakers for the review period. Track Price Plus Limited with a total of 66 betting offices located island wide was the dominant bookmaker with respect to sales generated over the review period. The company recorded overall reported sales of $619.890M for local and overseas racing, with $275,310,008 being generated from sales on local races and the remaining $344,579,892 coming from sales on overseas races and other sporting events.
Champion Betting Company Limited with total sales of $418,663M from 50 betting offices in operation saw $214,416,799 being generated from sales on overseas races and $204,246,688 from sales on local races was the second largest bookmaker. Total Betting Limited with 11 betting offices that accepted bets on local races recorded the lowest reported sales of $16.201M.
An examination of the comparative sales of individual bookmakers for local and overseas races between the financial years ended March 2004 and 2005 is presented in Table 4.
All bookmakers with the exception of Total Betting Limited and Track Price Plus Limited showed increases in reported sales on local races. Ideal Betting showed the largest increase in this betting mode of 22.32% with reported sales of $61.421M during the review period compared with $50.214M recorded during the comparative period of the preceding year. On the converse, the largest decline was recorded by Track Price Plus Limited with reported sales of $275.310M for the financial year ended March 2006, a 9.71% decline when compared to the previous year during which the total was $304.905M.
Table 4 also shows that increased sales on overseas races were recorded by four of the six bookmakers accepting bets on this betting mode with Ideal Betting Company Limited achieving the largest increase of 39.28% as sales progressed from $52.475M in 2005 to $73.087M over the review period.
Track Price Plus Limited and Charles Off Betting Limited both reported declines in sales on overseas races of 8.88% and 95.52% respectively. In the case of Track Price Plus Limited sales moved from $378.171M in the previous financial year to $344.579M over the review period. Charles Off Betting Limited reported decreased sales from $10.074M for the 2005 fiscal year to $453,968 for the fiscal year 2006. It should be noted however, that the Bookmaker only accepted bets on this betting mode during April 2005.
Shown at Table 5 is the comparative data on individual bookmakers payouts for the fiscal years 2004/2005 and 2005/2006. An analysis of the overall payouts on local races for the review period show a decline of 2.47% when compared to the corresponding period of the previous year with bookmakers paying out $691.176M during the review period compared to the previous financial year during which $708.664M was paid out.
Post to Post Betting Limited recorded the largest increase in payouts of 25.13% moving from $21.354M for the fiscal year 2004/2005 to $26.721M for 2005/2006. Track Price Plus Limited recorded the largest decline of 18.21% paying out $167.415M for the review period as opposed to $204.682 for the previous financial year.
Payouts from sales on overseas races increased by 0.81% for the period under review when compared to the corresponding period of the previous year, moving from $556.943M in 2005 to $561.445M. Charles Off Betting Limited recorded the largest decline in payouts of 95.52% moving from $8.069M in 2005 to $361,237 during the review period with the bookmaker only operating for the month of April. On the converse, Ideal Betting Company Limited recorded the largest increase in payouts of 38.83% moving from $35.919M in 2005 to $49.867M in 2006.
Table 6 provides information on the gross profit on reported sales of individual bookmakers for the fiscal year 2005/2006. With total sales of $1.976B and payouts of $1.253B, bookmakers achieved an overall gross profit of $723M or 36.60% of sales.
Track Price Plus Limited recorded the highest gross profit of $224.974M or 36.29% of sales while the lowest was recorded by Total Betting with $6.554M or 40.46% of sales.
The industry’s average payouts of 63.40% is also shown at Table 6. The largest payouts as a percentage of sales were recorded by Ideal Betting at 65.84% with overall sales of $134.508M and payouts of $88.556M while the lowest at 59.54% were recorded by Total Betting Limited with sales of $16.201M and payouts of $9.647M.
Table 7 provides information on the average sales, payouts and gross profits of individual bookmakers for the review period. Bookmakers recorded average gross profits per betting office of $1.965M from average sales and payouts of $5.360M and $3.404M, respectively. Track Price Plus Limited recorded the largest average gross profit of $3.400M from a total of 66 betting offices, while the lowest average gross profit of $391,553 was achieved by Charles Off Betting Limited.
Table 8 shows the taxes, duties and levies, paid and payable for the financial year 2005/2006. Of the $395.171M payable by licensees, 61.76% or $244.075M was paid.
Bookmakers paid $197.740M for the review period with the excess of $1.898M being payments for levy and taxes owed during the previous financial year. In contrast, the Racing Promoter continues to be tardy in meeting its tax obligations as only $46.336M or 23.25% of the $199.330M payable was paid during the review period.
Figure 3 complements Table 8 in showing the taxes, duties and levies payable by the Racing Promoter and bookmakers for the fiscal year April 2005 to March 2006. The amount payable by the Promoter was 51% of the industry’s total while bookmakers were responsible for the remaining 49%.
FIRST INSTANCE TRIBUNAL
The First Instance Tribunal completed fourteen investigations throughout the financial year, imposing penalties totalling $4,605,000 on five bookmakers, Big ‘A’ Track 2003 Limited, Capital Betting and Wagering Limited, Charles Off Betting Limited, Total Betting Limited and Track Price Plus Limited.
The largest penalty of $1,080,000 was imposed on Capital Betting & Wagering Limited for illegal betting at 47 Darlington Drive, Old Harbour, St. Catherine.
BETTING DIVISION
QUARTERLY REPORT FOR
QUARTER ENDED MARCH 2006
INTRODUCTION
For the quarter ended March 2006, the Betting industry recorded a modest increase of 2.86% with sales moving from $1.352B for the corresponding quarter of 2005 to $1.391B.
RACING PROMOTER
The Racing Promoter conducted betting on 19 local race meets and 77 days of simulcast races for the quarter under review. Overall sales of $894.676M were recorded, an increase of 8.19% when compared to the $826.927M generated during the corresponding period of 2005. (see Table 11).
An analysis of the Promoters sales by betting modes presented at Table 10 shows that sales on overseas races were largely responsible for the overall increase, as they progressed from $384.306M for the March ended quarter of 2005, to $449.653M, a 17% increase for the period under review. During the same period sales on local races recorded a marginal increase of 0.54% moving from the $442.620M recorded in the March quarter of 2005 to $445.023M during the quarter under review.
BOOKMAKERS
Table 11 also shows that in contrast to the positive performance of the Racing Promoter for the review period, bookmakers recorded a decline with overall reported sales moving from $524.886M in the March quarter of 2005 to $495.857M over the period under review. Reported sales on local races showed a decline of 6.54% moving from $302.586M for the quarter ended March 2005 to $282.784M for the review period. It should also be noted that the decline in sales on local races was achieved not withstanding an additional race meet being added to the local racing calendar. Sales on overseas races also suffered a similar fate, with reported sales of $213.073M being recorded for the review period, a decline of 4.15% when compared to the $222.300M recorded for the March ended quarter of 2005.
Presented at Figures 4 and 5 is a graphic representation of the sales performance of both the Racing Promoter and bookmakers. For the quarter ended March 2006, the Promoter maintained its dominance within the Industry with 65% of sales while bookmakers were responsible for the remaining 35%.
The sales performance of individual bookmakers are shown in Table 12. Track Price Plus Limited operated 61 betting offices island wide and was the premier bookmaker with overall reported sales of $154.699M for the review period. Total Betting Limited with eleven betting offices reported the lowest sales of $3.163M on local races.
It should also be noted that Track Price Plus Limited along with Champion Betting Company Limited that operated 51 betting offices and reported sales of $260.772M for the quarter under review were responsible for 52.83% of total sales generated by bookmakers. Also, of significance is the fact that the sales generated by both bookmakers on overseas races were in excess of that on local races.
Table 13 provides a comparative analysis of sales for quarters ended March 2005 and 2006. Only five of the eleven bookmakers accepting bets on local races showed an increase in sales for the quarter under review. Post to Post Betting Limited recorded the highest increase of 16.29%, moving from reported sales of $9.520M for the March ended quarter of 2005 to $11.071M for the review period. Among bookmakers showing a decline for the quarter was Total Betting Limited that recorded the largest decline with sales of $3.163M, a 33.35% decrease when compared to the corresponding quarter of 2005 during which reported sales were $4.745M.
Table 13 also provides statistical data on the overseas sales performance of bookmakers and shows that Ideal Betting recorded the largest increase among the five bookmakers offering bets on this bet type. This bookmaker saw sales progressing from $14.469M for the March ended quarter of 2005 to $18.254M for the review period, a 26.15% increase.
Figure 6 compliments Tables 12 and 13 in giving a graphic perspective of individual bookmakers’ sales performance for the March ended quarter of 2006.
Table 14 illustrates the gross profits generated by the Racing Promoter and bookmakers for the quarter under review. The Promoter realized gross profits of $283.482M or 31.69% of sales while bookmakers reported gross profits of $181.767M or 36.66% of sales. The gross profits recorded by bookmakers were 8.70% in excess of the $167.217M reported for the corresponding period of the previous year. Contributing to the increase was the fact that payouts by bookmakers decreased by 12.18% moving from $357.669M for the March quarter ended 2005 to $314.090M for the review period. The review period also saw the Promoter with an increase of 10.54% in gross profits, moving from $256.463M in the March quarter of 2005 to $283.482M during the review period.
Individual gross profits attained by bookmakers are captured at Table 15. Big ‘A’ Track 2003 Limited recorded the largest gross profits of $3.674M, or 44.01% of sales while the lowest of $1.002M or 31.68% of sales were achieved by Total Betting Limited.
Table 16 provides data on taxes, duties and levies payable and paid by the Racing Promoter and bookmakers for the quarter under review. The Industry paid $101.031M for the review period some 23.29% in excess of the $81.943M payable as outstanding payments from the previous quarter were liquidated during the review period.
Bookmakers paid a total of $50.205M, some 22.67% in excess of the $40.928M payable while the Promoter paid $50.826, some 23.92% in excess of the $41.24M payable.
FIRST INSTANCE TRIBUNAL
There was no sitting of the First Instance Tribunal during the March ended quarter of 2006, as new members of the Tribunal were yet to be appointed by the Board.
Staff Complement:
Director of Betting
Senior Inspector
Inspectors (7)
Audit Supervisor
Senior Audit Clerk
Audit Clerks (8)
Secretaries (2)
July 7, 2006