BETTING, GAMING & LOTTERIES COMMISSION

Betting Sector Report

January – December 2003

The industry recorded total sales of $4.645B for the period January to December 2003, an increase of 0.36% over the $4.628B for the corresponding period of 2002.

Racing Promoter

Table 1 shows that the overall sales recorded by the Promoter were $2.857B, an increase of 2.59% over the $2.784B recorded for the corresponding period of 2002.  Notwithstanding the 2.59% increase, local  races operating from a total of 90 race days recorded sales of $1.633B a decrease of 2.15% when compared with the corresponding period of 2002 when sales of $1.668B was recorded.

The Promoter’s performance on simulcast races reflected an improvement. Operating from a total of 312 race days and recording average sales of $3.902M per race day, total sales recorded were $1.217B, which represent an increase of 10.78% when compared with 2002 when sales of $1.099B were recorded. It should also be noted that all quarters throughout the year recorded increases for the year under review when compared with the previous year.  The quarter ending December 2003 showed the highest increase of 22.39% or sales of $322.777M when compared with the December 2002 quarter when sales of $263.730M were recorded.

There was also a downward trend with respect to sales on the Racing Pools Game.  The quarter ending June 2003 showed a decrease of 43.67% or sales of $2.282M when compared with the corresponding year of 2002 when sales of $4.052M was recorded.  With the game in dire need of a major overhaul or phase-out, the Promoter suspended the game indefinitely at the end of June 2003 until measures can be implemented to ensure its viability.

 Bookmakers

 Table 2 provides information on the sales performance of the bookmakers. The total sales recorded were $1.788B a decrease of 3.01% when compared with the $1.843B recorded in the corresponding period of 2002. Sales on local races decreased by 6.76% or $0.087B when compared with the $1.138B recorded for the calendar year 2002.  

In comparison, total overseas sales for the year 2003 were $728.054M an increase of 3.18% over the previous year when sales of $705.647M were recorded. The overall increase was also aided by three bookmakers, Track Price Plus Limited, Markham Betting Company Limited and Champion Betting Company Limited accepting bets on other sporting events during the year.  The sales recorded on such bets were in excess of $7.913M.  Also of significance is fact that the increase was achieved despite the discontinuation of sales on overseas racing by Post to Post Betting Limited at the end of May 2003.

Further analysis of the industry’s sales for the calendar year 2003 in Table 2 and Figure 1 (below) reveal that the marginal increase of 0.36% achieved could be attributed to the positive performance of all betting modes by both the Promoter and bookmakers in the final quarter of the year under review. Also shown is the overall decrease in local sales as opposed to the improved performance of varying overseas products offered by the Promoter and bookmakers.

Figure 2 provides a percentage breakdown of the industry’s sales for the period under review. It indicates that the Promoter generated 61% of total sales, with local races responsible for 35%. In comparison the bookmakers were responsible for the remaining 39% of total sales of which local races was responsible for 23%.

Individual Bookmakers’ Sales

Table 3 provides information on local sales recorded by each bookmaker.  Notwithstanding the overall decline of 6.76% recorded by the bookmakers for local sales Champion Betting Company Limited recorded an overall increase of 20.84% for the year or $118.504M when compared to the previous year when sales of $98.071M was recorded.  This strong performance, however, can be attributed to the company’s acquisition of all the betting offices of Golden Horse Betting Limited at the end of September 2003.

On the converse, Cornwall Betting Services Limited and Western Track Limited recorded the largest decline in sales.  Western Track Limited with sales of $13.688M for the year under review showed a decrease of 33.65% when compared to the previous year’s sales of $20.630M.  Cornwall Betting Services Limited recorded sales of $27.773M for 2003 a decrease of 25.01% over 2002 when sales of $37.034M were recorded. It should be noted that both bookmakers are headquartered in the parish of St. James and their operations are concentrated in the Western section of the island.

The island’s largest bookmaker Track Price Plus Limited with respect to sales generated, recorded annual sales of $348.742M, the second highest increase of 12.62% when compared with the previous year when sales recorded was $309.653M.

Table 4 provides information on overseas sales performance by the bookmakers. Charles Off Betting Limited with increases in all four quarters of 2003 recorded the highest increase of 20.62% or sales of $17.676M when compared with the corresponding period of 2002 when sales of $14.654M were recorded.

Industry Revenue

Table 5 (below) provides detailed information on the net revenue earned by both the Racing Promoter and bookmakers. The Promoter’s net revenue was $950.858M or 33.29% of sales.   This represents an improvement on 2002 when net revenue recorded was $902.856M.

In comparison the bookmakers recorded a decline in net revenue moving from $692.220M in 2002 to $655.228M or 36.96% of sales for the period under review. Table 5 is complemented by Figure 3 (below) in showing the net revenue of the Racing Promoter and bookmakers.

Government Revenue

Table 6 (below) provides information on levies, taxes and duties payable and paid by the industry.  There was an overall reduction of 32.3% for the calendar year in the amount paid by licensees when compared to the corresponding period of 2002.  The shortfall in the amount paid was due to the tardiness and eventual cessation of payments by the Promoter.

The Commission has been constrained in taking action to recover the debt because of Government policy to not institute legal proceedings (First Instance Tribunal) against other state agencies. The promoter has since sought a duty waiver from Government. Of note is that Government is actively engaged in privatizing Caymanas Park through a long-term lease.

The total taxes paid for the year under review was $252.828M or 36.11% less than the $396.877M payable. 

First Instance Tribunal

During the calendar year 2003 there was an increase in the number of sittings held by the First Instance Tribunal resulting in a total of 16 hearings being completed, compared to the 7 completed in 2002.  Charges brought before the Tribunal varied from late submission of Receipts and Returns to bookmakers opening beyond the prescribed opening hours.

Tables 7 and 8 provide further details on these investigations.

Table 7: COMPLETED TRIBUNAL HEARINGS

                   JANUARY – DECEMBER 2003 

Table 8: COMPLETED TRIBUNAL HEARINGS

              JANUARY – DECEMBER 2003

Special Assignments

During the calendar year 2003 a total of 59 Special Assignments were conducted island-wide, which comprised of static or continuous monitoring of betting offices.  This was a 59.46% increase on the 37 such assignments conducted the previous year. 

Special Assignments were conducted with the assistance of the audit staff who are assigned to target betting offices that may have indicated in the past a high propensity to illegal activity or a drastic decline in sales. The objective of these assignments is to unearth or impede illegal betting activities and by so doing boost the bookmaking sales and ultimately Government’s revenue.

Special Assignments have also been responsible for uncovering illegal betting activities within the immediate vicinity of licensed betting offices.  These illegal entities have often times utilised the satellite transmission of licensed betting offices to conduct their illegal activities.

During the year 2003 Special Assignments conducted by both inspectors and audit clerks have been directly responsible for the arrest and conviction of two such illegal operators.

It is envisaged that with an increased staff complement within the Betting Division, that future special assignments will include static monitoring that would require staff to ‘saturate’ a targeted geographical area and monitor many more betting offices than are currently possible.  This type of monitoring would be conducted with the collaboration of the Enforcement Division.

Table 9 (below) provides information on the spot check visits made by inspectors to betting offices, bookmakers head offices and Off Track Betting Parlours over the period under review and may be compared to the visits made to these locations during the year 2002.

Table 9: SPOT CHECK VISITS

NOTE:  Statistical data for quarter ending December 2003 are unaudited