BETTING DIVISION

REPORT FOR CALENDAR YEAR 2004

This report provides information on the performance of the betting industry comprising the racing promoter, Caymanas Track Limited and fourteen bookmakers.  It should however be noted that during the course of the year three bookmakers discontinued accepting bets as under:-

 

Cornwall Betting Services Limited              -           March

Folly’s Betting (1963) Limited                     -           March

   Western Track Limited                                 -           October

 

The sales performance within the industry was somewhat flat with only a 2.49% increase was recorded as the total increased from $4.645B in 2003 to $4.761B during the review period.

 

RACING PROMOTER

Table 1 shows that total sales recorded by the Promoter for the review period were $2.927B, an increase of 2.47% above the $2.857B recorded over the corresponding period of the previous year.  There were a total of 80 local race days as against 90 in the previous year.  Such race days resulted in sales of $1.578B, a 3.36% decline on the $1.632B recorded during the corresponding period of the previous year.

 

The reduction in the number of race days may be attributed primarily to the effects of hurricane Ivan on the racing plant and also the refusal of a number of trainers to nominate horses for some scheduled race meets.

 

Sales on simulcast races recorded an increase over that of the previous year, with $1.349B being reported, 10.85% above the previous year’s total of $1.217B.  Sales were recorded from 307 race days, 5 less that the 312 such days of the corresponding period of the previous year.  It is of significance that an increase in sales in this betting mode was recorded despite the loss of the abovementioned race days.

 

It should also be noted that sales on simulcast races for the quarter ended March was $361.642M the highest for all quarters, and was 16.29% in excess of that recorded during the corresponding quarter of the previous year.

 

A closer examination of Table 1 shows that overall sales for the December quarter surpassed that of all other quarters of the review period.

                                                .

 

 

The marginal decline in sales on local races was offset by a 6.86% increase in sales on overseas races that moved from $720.140M in the corresponding period of 2003 to $769.523M in the period under review.  Also of significance was the increase in sales on other sporting events that increased from $7.913M in 2003 to $11.513M over the review period, an increase of 45.49%.

 

The table also shows that the largest sales on local races for any quarter over the review period was $322.206M recorded in the December quarter, while the lowest of $216.762M was recorded during the September quarter. 

 

The most successful quarter in terms of reported sales on overseas races was the June quarter during which the sales reported was in excess of $226.110M.

 

 

Figure 1 overleaf complements Tables 1 & 2 and provides a graphic overview of the sales performance of the Promoter and bookmakers.  It also provides a comparison of the sales generated by the licensees over the review period and that of the previous year.

 

Figure 1 also illustrates the decrease in sales on local races for the Promoter in the period under review when compared to the previous year and the increase in sales on simulcast races over the corresponding period.  Also shown are the decline in sales on local races and the increase in sales on overseas races by bookmakers between 2003 and 2004.

 

Figure 1 further illustrates that the sales performance of the Promoter continues to outstrip that of bookmakers.

 

         

A breakdown of the industry’s sales for the period under review is shown at Figure 2, overleaf.  Bookmakers’ sales were responsible for 38% of the industry’s total, while the Promoter was responsible for the remaining 62%.

 

 

 

INDIVIDUAL BOOKMAKERS’ SALES

Details of the individual sales performance of bookmakers on local races may be seen at Table 3.  There was an overall decline of 0.74% when compared to the previous year, as sales decreased from $1.061B to $1.053B.  As mentioned previously this decline may in part be attributed to the impact of hurricane Ivan and the loss of certain race days as a result of a dispute between some trainers and the Jamaica Racing Commission.

 

The table also shows that of the bookmakers who operated for the entire review period, Champion Betting Company Limited recorded the largest percentage increase of 42.94% as sales increased from $118.505M in the previous twelve months to $169.387M.  Markham Betting Company also reported an increase in sales during the review period when compared to the previous year of 36.95% with sales progressing from $107.496M in 2003 to $147.215M over the period under review.  On the converse Ideal Betting Company Limited recorded the largest decline of 21.62%.

 

The overall performance in local sales must however be looked at against the background of the three bookmakers that reported significant increases in sales being those guilty of accepting bets beyond the prescribed opening hours.  The other bookmaker to report increased sales in this betting mode was Caribbean Turf Service Limited that recorded an increase of 1.17%.

 

 

Table 4 shows that of the fourteen bookmakers that operated, over the review period six accepted bets on overseas races.  Total sales reported by such licensees were $781.036M, some 7.28% in excess of the $728.004M reported during the corresponding period of the previous year.  Notwithstanding the difficulties encountered during the period under review five of the six bookmakers reported increased sales when compared to the previous year. 

 

It should however be noted that Charles Off Betting Limited, reported a significant decline of 43.50%, while Champion Betting Company Limited reported the largest increase of 21.17%.  Track Price Plus with sales of $370.045M recorded significantly more sales than all other bookmakers and was responsible for 47.4% of the total sales, while Charles Off Betting with sales of $9.987M was responsible for only1.28%.

 

 

INDUSTRY REVENUE

Gross profit as a percentage of sales within the industry is shown at Table 5, below.  The Promoter earned gross profit of $942.304M or 32.19% of recorded sales, 1.1% below the $950.858 or 33.29% recorded over the previous twelve months.

 

Bookmakers recorded a decrease in gross profit as a percentage of sales for the review period when compared to the previous year as such profit declined from $671.073M or 37.51% in 2003 to $641.711M or 34.99% of sales.

 

 

TABLE 5
NET REVENUE RACING PROMOTER & BOOKMAKERS
CALENDER YEAR JANUARY TO DECEMBER FOR 2003 AND 2004
	Q/E MAR 2003	Q/E MAR 2004	Q/E JUNE 2003	Q/E JUNE 2004	Q/E SEPT 2003	Q/E SEPT 2004	Q/E DEC 2003	Q/E DEC 2004	JAN - DEC 2003	JAN - DEC 2004
RACING PROMOTER
SALES	740,248,060	731,673,722	650,153,761	755,599,306	703,979,170	628,112,825	762,254,470	811,712,507	2,856,635,461	2,927,098,360
PAYOUTS	495,809,873	497,958,656	433,992,552	505,779,987	480,509,638	428,702,916	495,465,406	552,352,660	1,905,777,469	1,984,794,219
GROSS PROFIT	244,438,187	233,715,066	216,161,209	249,819,319	223,469,532	199,409,909	266,789,064	259,359,847	950,857,992	942,304,141
GROSS PROFIT AS A % OF SALES	33.02%	31.94%	33.25%	33.06%	31.74%	31.75%	35.00%	31.95%	33.29%	32.19%
BOOKMAKERS
SALES	434,248,827	454,588,819	441,188,023	488,661,025	445,608,476	392,763,515	467,780,449	497,897,699	1,788,825,775	1,833,911,058
PAYOUTS	275,140,923	284,555,574	279,177,069	314,113,378	282,007,614	257,333,938	281,426,779	336,197,006	1,117,752,385	1,192,199,896
GROSS PROFIT	159,107,904	170,033,245	162,010,954	174,547,647	163,600,862	135,429,577	186,353,670	161,700,693	671,073,390	641,711,162
GROSS PROFIT AS A % OF SALES	36.64%	37.40%	36.72%	35.72%	36.71%	34.48%	39.84%	32.48%	37.51%	34.99%

 

 

Table 5 is complemented by Figure 3 below; in showing the gross profit recorded by bookmakers and the Promoter for the period under review and also provides a comparison with the performance of the licensees for the corresponding period of the previous year.

 

The average sales, payouts and gross profit recorded by individual bookmakers are tabulated at Table 6.

 

With 71 betting offices in operation Track Price Plus Limited earned average net revenue of $3.093M, this was followed by Markham Betting Company and Champion Betting Company Limited with $2.275M and $2.217M, respectively.  Of the other bookmakers that operated for the entire review period, Total Betting Limited with 18 betting offices recorded the lowest average net revenue of $368,795.

                                                                              

Table 6

Individual Book Makers Average

Sales, Payout & Gross profit

Calender 2004

                

                                                    

Table 7 provides details of the net revenue of bookmakers for the period under review.  Track Price Plus continues to be the leading bookmaker in terms of sales and earned net revenues of $219.652M from sales of $662.185M. It should be noted that Champion Betting Company Limited has now established itself as the second largest bookmaker in terms of sales generated and for the period under review realized sales of $334.365M and net revenue of $117.552M.  On the other hand, of the bookmakers that operated for the entire year Total Betting Limited with sales of $16.088M and net revenue of $6.638M was the smallest.

 

Table 7

Individual Bookmaker Gross Profit

Calender Year 2004

 

 

TAXES

The taxes paid and payable for the period January to December 2004 are shown at Table 8, attached.  Of the $115.809M payable on local races by bookmakers some $112.007M was paid and of the $85.499M payable on overseas races, $83.214M was paid.  In total, bookmakers paid $195.301M of the $201.388M payable.  The situation with the Promoter was somewhat different and of the $204.897M payable for the review period only $94.112M was paid.

TABLE 8

             TAX PAYABLE AND PAID BY THE INDUSTRY

QUARTERS END MARCH TO DECEMBER 2003 AND 2004

	Q/E MAR 2003		Q/E MAR 2004		Q/E JUNE 2003		Q/E JUNE 2004		Q/E SEPT. 2003		Q/E SEPT. 2004		Q/E DEC. 2003		Q/E DEC. 2004		JAN TO DEC 2003	JAN TO DEC 2003	JAN TO DEC 2003	JAN TO DEC 2004
Bookmakers	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID	PAYABLE	PAID
Local	28,950,239	30,592,251	27,938,902	30,728,608	27,523,122	27,084,486	28,584,049	29,279,402	27,359,119	27,216,427	23,843,804	23,479,841	32,317,054	32,145,616	35,442,652	28,519,151	116,149,534	117,038,780	115,809,407	112,007,002
$80 Specific Levy	26,400	27,280	21,280	23,200	25,680