Breeding & Racing Magazine

NSW TAB Fixed-Odds "Cannibalising Tote Holds"

Concerned NSW race clubs “are putting their faith in the TAB's fixed-odds operation to save the dwindling TAB distribution, even though it is ‘cannibalising’ tote holds,” reported The Sydney Morning Herald. “The distribution, the lifeblood of the sport, was down about 3% at the half-year mark but the growth of fixed odds is expected to mean the overall figure is down only 1-2% for the financial year”. Racing NSW general manager (analytical) Scott Kennedy confirmed: “It would be a miracle if we can match what we got last year. From Autumn last year to Autumn this year, our figures have been down every month but we broke even in April & the trend is improving. . . . . . To some extent, fixed odds is cannibalising the tote pools, but it also clawing back some business in a very competitive market. It is helping the TAB compete, which can only be good for the industry.” The newspaper noted: “Traditional models are quickly becoming obsolete. The market has gone from near monopoly where the TAB ruled the roost to one of the most competitive in the business world. . . . . . Betting on fixed odds, which went into agencies at the beginning of the year, is up more than 300% from a small base last year & continues to grow as tote pools drop. . . . Clubs have watched in horror as TAB holds have dropped 10-20% in recent times & it has reached the point where the traditional parimutuel holds can not be looked at in isolation.” To read the whole analysis, click on the link in The Great Debate panel on the right-hand-side of this page.