Home » Racing & Sport » Met Day Turnover – Phumelela Respond To SP Reader

Met Day Turnover – Phumelela Respond To SP Reader

Racing operator plays open cards

It has previously been recorded that an administrative oversight in the dissemination of information to the Hong Kong Jockey Club on Sun Met day led to that authority refunding some bets.

Read more here

Sporting Post reader Rod Mattheyse asked the following questions of Phumelela via our comments facility on our website, www.sportingpost.co.za:

1) How does the HK “contribution” then filter into our system?

2) How does the proudly 27% up then come about?

3) How did the information debacle affect the HK “contribution”?

We approached Phumelela for a response, which is incorporated into the undermentioned statement:

The Hong Kong Jockey Club (HKJC) currently does not commingle and host pools, what we would term B pools, in their own country.

On 26 January 2019, Sun Met day, Hong Kong punters bet HK$149m on the seven races that were imported by the HKJC.

After deciding to refund a portion of the bets impacted by the jockey changes, which of course is their right, the net turnover for the day was HK$143.5m.

An increase of 27% year on year was reported, however, the actual increase net of refunds was 23%.

We also recorded that there has been a growth year on year and this average, positions us with the best in the world. We do, however, acknowledge the administrative and communication oversight on our side on the day – however, this has been dealt with to ensure that this error does not recur.

An international rights holder typically earns a royalty that is a percentage of the turnover. This percentage is governed by agreements between the HKJC and Phumelela Gaming, which are confidential.

Royalties earned, less the expenses, are split between the betting operators on a pre-determined dividend agreed on.  This split still applies today.

In addition to the export of SA racing to Hong Kong, South African customers can bet on every race that is run in HK every year. The HKJC also use Phumelela International’s betting hub, Premier Gateway International based on the IOM, for international commingling.

  • Phumelela Press Release
  • Sun Met day pics by Chase Liebenberg Photography

Have Your Say

Comments Policy
The Sporting Post encourages allcomers to feel free to have their say in the spirit of enlightening the topic, the participants and the originator of the thread. However, if it is deemed to be either offensive, insulting, personal, false or possibly unsubstantiated, the Sporting Post shall, on it's own assessment, alter or remove comments.

11 comments on “Met Day Turnover – Phumelela Respond To SP Reader

  1. The Dark Duke says:

    So where have Mr Mattheyses questions been answered? What percentage of Phumelelas rake was returned to the stakes pot and how is this audited?

  2. Steve Reid says:

    Give or take a few Rand, the rand value of net turnover for the day was R250M. There is no mention of how this filters into the stakes pot and more importantly, at what percentage.

  3. jc lee ching says:

    I agree with The Duke and Steve Reid, PLEASE ANSWER THE QUESTION.

    1. Editor says:

      Referred back for clarity – Phumelela have acknowledged receipt of it

  4. Roderick Mattheyse says:

    Ok, so confidentiality comes to the rescue. But confidentiality also creates assumption and speculation.

    Lets assume, as confidentiality hides the facts, that the royalty was 3% – and this is based on what Telly Track wanted to charge bookies for the pictures – that makes the contribution R7.5m to SA racing. Conversely assuming Hong Kong JC take out was the minimum of 17.5% (their takeout is between 17.5 and 25% depending on type of bet) results in a minimum of R44m being contributed to Hong Kong racing.

    My conclusion is that PGE don’t negotiate hard enough in sharing the spoils thereby short-selling SA racing. Maybe it suits Phumelela’s agenda to continue to drive down SA racing and beat the loss drum but earn the profits on the Isle of man – can’t be good for stakes and owners, breeders and ultimately people who like to punt SA racing. Will be interesting what turnover will be like when there 6 horse fields – with Wigerbosdrift/Mauritzfontein, Drakenstein, Klawervlei, Varsfontein, Highlands and Maine Chance racing each other for a pie and coke!

  5. Steve Reid says:

    Confidentiality remains if Phumelela answer my question as to what percentage of the royalty is paid into the stakes pot. Perhaps the RA have negotiated outside of the infamous stakes agreement and another verbal agreement in place? Mauritius properties don’t come cheap.

  6. Pieta says:

    Maybe the HKJC will have a more sincere and professional answer for us?
    And the truth….they are open with the people that pay their salaries……the punters.

  7. James George says:

    Phumelela,Phumelela. Lets correct a part of your statement which reads– After deciding to refund a portion of the bets impacted by the jockey changes, which of course is their right,
    This should read —After deciding to refund a portion of the bets impacted by the jockey changes, which was the right course to take because The Hong Kong Jockey Club unlike certain operators—
    “Believes accurate and timely delivery of wagering related information is a core value of the club’s simulcast and betting protocol,” .

    “The club will always act responsibly to ensure that these values are not violated and the customer’s interests are served and protected.”

  8. Rod Mattheyse says:

    I must apologize to the Ed.

    I have taken his advice to a certain extent. But I have failed as this request shows I may still care, when I should not and don’t give a continental.

    Numbers have been reduced drastically and it’s 4 sales in a row now that I have not attended. I was about to go to book 1 when I realized that it was so much more fun having drinks with my mates in the golf clubhouse. Maybe it’s a sign as I sold well for a change.

    Old timers say this game tames tigers, what they actually mean is the connected money will scoop the dros.

  9. The Dark Duke says:

    The silence is deafening.

    1. Editor says:

      We are in touch with them The Dark Duke.

Leave a Comment

‹ Previous

Fairview The Major Attraction Today

Next ›

It’s Back To Basics Today