LINDSAY'S RACETRACK RANT -5 February 2009

Who's making a buck?

It’s generally regarded these days that the only ones likely to be making money from the gambling dollar are the corporate bookies. But this view was challenged with an observation on the Crikey website last week that identified just how many of the corporate bookies have sold or are trying to sell their operations.

The Crikey article listed the following sale activity among the corporates:

IAS Bet – on the market; Sportsbet – tried to sell out to Tabcorp; Bill Hurley Sportsbook – sold to Tabcorp (now run as Luxbet); Centreracing – sold to Tattersalls; Col Tidy’s Bet Choice – on the market; Centrebet – listed 18 months ago to allow founders to cash out; Lasseter – went bust after 18 months.

It makes you wonder where all of this leaves the poor old racetrack bookie. When you consider the huge advantages that the corporates have enjoyed over racetrack bookies, it’s not hard to understand the almost complete demise of the satchel-swingers at the track.

Personally, I’ve got my fingers crossed in the hope that the almost frenzied action which is taking place at the moment in relation to the restructure of Australian racing and its administration will bring about an easing of the restrictions that apply to oncourse bookies like myself and allow me to compete on a more equal footing with my offcourse competitors.

While on the matter of corporate sales, I see in yesterday’s press where the Takeovers Panel will determine whether Centrebet should be released from a standstill agreement to allow it to pursue its hostile $20 odd million takeover of Mark Read’s International Allsports (IAS).

Six months’ ago IAS had the business up for sale, but has since rejected the advances of Centrebet, claiming that the 28-33c a share offer undervalues the company. It makes you wonder how shareholders feel about that stance, considering IAS has been trading recently at around 16c and that the operational loss of the IAS group last year was $3.8 million, following a $9.4 million loss the previous year.

Based on this type of evidence, maybe the huff and puff of the corporates in recent years just doesn’t carry the justification that many have imagined.

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