Wednesday, September 20, 2006

And They Are Off ...

Rohan_888 said...
A payout of 77% on Malaysian horseracing is just way too low, especcially for place bets and win bets on favorites. If they (turfclubs + totalisator + government) seriously want to try to get a chunk of the bookie turnover they have to increase the payout. By increasing the dividends, by rebates or both. If they combine this with state-of-the-art technology, then the bookie only has one advantage left: punters can bet with them on credit. Both Singapore and Hong Kong have started giving rebates, when will Malaysia wake up?


My Take - Yes, that's the third pillar of eradicating illegals. I mean, the NFO payout ratio is even worse. Racing clubs should aim for 85% at least, then life would be a lot tougher for bookies. Right now bookies can comfortably offer 20% discount on each ticket and still come out on top.

Rebates for big ticket bets is a wierd thing. Its like racing clubs are acknowledging the strength of illegal bookmaking. But the small punters lose out. The rebates almost matches the discounts given by illegals, but the clubs must look deeper into why they bet with illegals - convenience, no cash upfront, can bet last minute, sometimes even cancelling bets last minute - fear of bookies absconding is surprisingly low, unlike 4D illegals, where people who bet big would want to bet with the official operator and not illegals.

But cleaning up Malaysian/Singapore racing will take a huge effort, you have to implement and see that rules are being exercised, suspend and fine accordingly. Plus increase prize money substantially. Sack all the club and committee members of existing turf clubs, put in professional managers at all levels - stewards, stipes, starters, vets, committee members - racing in our country is just as hard to move as the politics, its ingrained and vested interest abound. Everyone is a crony, has a crony ...

1 comment:

xatomic said...

Hi Salvatore

I follow your blog quite often and always do admire your freespoken and candid views on the market and other interesting issues.

I would appreciate your views on Tenaga now if you can do a write-up, especially the warrants coz I remember you wrote bout it before last time. Tenaga-CB seems to be trading at ridiculously low premium compared to its counterpart Tenaga-CA. At the current price relative to the mother share, the premium is only 5.7% compared to 18.6% for the latter.The expiry date difference is only 3 months and gearing is much higher, so why the difference in valuations? Is the market undervaluing the warrant now?