Inside RUNNING. NZ Racing Board and Tabcorp Signing Leads Internationalisation Strategy. A look at co-mingling

Transcription

1 Inside RUNNING Issue 10, 2006 NZ Racing Board and Tabcorp Signing Leads Internationalisation Strategy The announcement of the New Zealand Racing Board and Victoria s Tabcorp signing of a Memorandum of Understanding (MOU) late last month was an important step in the internationalisation strategy for trans-tasman racing. Matthew Slatter, Tabcorp Managing Director and Chief Executive Officer, visited Wellington on 28 August to sign the MOU with NZ Racing Board Chief Executive, Graeme Hansen. Mr Hansen says, The agreement presents the NZ Racing Board with the potential to export further New Zealand race product into Australia, to import more product from Australia and the opportunity to gain a competitive edge in the international marketplace. Graeme Hansen, NZ Racing Board Chief Executive (left) and Matthew Slatter, Tabcorp Managing Director and Chief Executive Officer, at the media conference that followed the signing. In this way, we will cement New Zealand racing s position as a first tier racing country. The MOU will enable the two racing and wagering jurisdictions to formalise discussions about three key initiatives which stand to benefit racing stakeholders and betting customers alike on both sides of the Tasman: Co-mingling of NZ Racing Board bets on Australian racing with Tabcorp; and co-mingling of Tabcorp bets on New Zealand racing with the NZ Racing Board. Sky Channel (Australia) is Tabcorp s television broadcaster and could provide broadcast opportunities for the increased export of New Zealand race product and a more consistent schedule of the importation of Australian product. This will be subject to negotiation with the New Zealand racing codes. A look at co-mingling The co-mingling agreements are expected to involve the win, place and quinella pools, with technical developments and regulatory consents determining any start dates. Co-mingling is commonplace in many wagering organisations throughout the world. It operates in two ways to make betting more appealing to customers by increasing pool sizes and, as a result, providing a better spread of dividends. Graeme Hansen explains: It will address anomalies such as occurred in last year s Melbourne Cup where the heavy betting here on a New Zealand favourite (Xcellent) meant the dividends paid to punters were less than those Australian punters collected for the same investment. continued...

2 Co-mingling has been shown to increase turnover for the participating totes as the larger pool sizes encourage customers to bet with more confidence given that odds volatility diminishes, he said. With co-mingling the takeout rates for the combined pools need to be consistent, therefore the New Zealand wagering customers will benefit from the lower Australian take-out rates. Sky Channel an international platform At present New Zealand racing is broadcast only in New Zealand and Australia, with Sky Channel the broadcaster across the Tasman. Under the MOU an agreement with Sky Channel would see New Zealand racing offered to a wider international market. Sky Channel currently broadcasts Australian racing to a range of major markets including North America, the UK, Ireland and South Africa. There is also the potential to use the time difference between New Zealand and Australia to broadcast New Zealand racing there before the start of the Australian raceday, with all three racing codes having the opportunity for broadcast. Internationalisation a long-term goal Further internationalisation of New Zealand racing, including increasing New Zealand s global participation as a Tier 1 racing country, has been on the agenda since the publication of the Jackson Report in November 2004 The Case for Improved Economic Performance in the Racing Industry. The signing of the MOU is not only a major step towards this goal. Mr Hansen says, The move is part of the New Zealand Racing s Board s internationalisation strategy that could eventually see similar relationships with other countries. Mr Slatter is equally enthusiastic about the potential it holds for Tabcorp. This partnership paves the way for a range of exciting initiatives that will deliver benefits for all three codes of the Australian and New Zealand racing industries, our customers and Tabcorp, he says. The signing of the MOU with the New Zealand Racing Board forms part of Tabcorp s strategy to target selected expansion opportunities in international markets. Code Distributions, Turnover Share a Story of Growth Unaudited figures for the financial year bring good news on both the turnover for our wagering business the TAB, and on our operating performance and consequent distribution to the racing codes. As a result, the New Zealand Racing Board expects to distribute $4.5 million of additional surplus funding to the racing codes, over and above the amount previously committed. Operating performance for the past two seasons has seen strong growth, and the unaudited operating profit available for distribution to the codes for the past season is in excess of $85 million. The result demonstrates that the NZ Racing Board aim, stated at its 2003 inception, to deliver a further $10-15 million to the industry over the coming five years, is bearing fruit. Chairman Warren Larsen has said, I am pleased to announce the Board is now delivering above its $10 million target level after just three years. Furthermore, these gains have been achieved before the effect of the beneficial taxation changes, which kicked in from 1 August With the flow-on effect of the tax changes just beginning, and this solid performance achieved already, the racing industry now has a robust financial platform for encouraging further racing participation, and contributing more strongly to national economic growth, both for itself and for New Zealand as a whole. The operating performance figure is in part a result of strong turnover growth across the wagering business. Turnover increased 7.2% over the previous year, to reach $1.36 billion. The breakdown of turnover figures delivers good news for oncourse wagering up by 3.3% on the past year; and for betting through the TAB s electronic channels. Investment in promotion and development of Internet and Self Service betting has seen these grow by more than 30%. Fixed Odds Betting has also shown good growth. FOB racing has grown dramatically, with Final Field race betting made available over a great many more races three times as many as last year with a three-fold increase in turnover. Meanwhile, the turnover contribution of the 2006 Football World Cup also boosted FOB figures, along with a good betting season for the Rebel Sport Super 14 tournament. Fixed Odds Betting accounts for some $190 million of TAB turnover. The figures are preliminary at this stage and subject to change however the story they tell is undeniably positive for the racing industry.

3 Broadcast New Studio to Reach the Racing Talent Trackside Television kicked off Spring racing with a new Waikato based broadcasting studio. It provides greater access to some of the industry s key racing participants, continuing the channel s growth as a competitive sporting channel in New Zealand. Based at the New Zealand Racing Board site in Hamilton, the broadcasting studio provides a new home for Trackside s flagship thoroughbred show NZ Retro which returned this season in conjunction with the Australasian Spring Racing Carnival. NZ Retro resumed on Sunday 3 September, reviewing the Mudgway Stakes, first leg of the rich Hawkes Bay Triple Crown. The NZ Retro Show screens every Sunday, reviewing the previous day s feature racing and debating issues at the heart of the thoroughbred industry. Host Karyn Fenton-Ellis won t have far to travel now thanks to the new Waikato Studio, which will also provide access to a far greater mix of panellists due to the racing rich location. Trackside Head Engineer Gavin Richmond and the Hamilton Outside Broadcast crew have managed the planning, commissioning and fit-out of the new studio, which incorporates the latest in television technology and commercial fit-outs. Local Trackside staff crew the studio for the Sunday broadcasts. The creation of the studio brings further broadcast capability to the site of the greatest concentration of North Island racing talent, says Trackside Television Head of Broadcasting Glen Broomhall. Many of New Zealand s top trainers and studs are on the Waikato doorstep. Aside from better access to heartland racing people and information, viewers will hardly notice the difference. Trackside will continue using its Avalon studio for live crossovers and interviews, and the two NZ Retro sets look identical. However, the investment in the studio will save production and presenter travel costs, and reduce logistical risks and consequent stress. For example, on Sundays for the NZ Retro Show last season, Fenton-Ellis would get up at 4.30am at her home in Te Akau and drive to Auckland Airport for her flight to Wellington. She d be in make-up at Avalon by 8.30am and in the studio for rehearsals at 9.30 to go on air at 10, returning home by 4.30pm. If the fog that closed Wellington Airport during the end-of-season break for the NZ Retro Show, had cropped up on a broadcasting Sunday, Broomhall says the show would have had to go to air without her and new Auckland-based panellist Stuart Laing. The studio creates opportunities for new Trackside programmes and productions, under consideration by Broomhall and his team. Since the channel commenced 24-hour broadcasting last October, it has built up a substantial stable of locally produced shows. Trackside Television s programming output has increased significantly since last October maximising racing entertainment and enriching local content. Each week the channel broadcasts over 75 hours of live racing and 12 hours of original formatted programming see the box for scheduling details. Karyn Fenton-Ellis and Stuart Laing in the new Hamilton studio picture courtesy of Waikato Times.

4 Radio Trackside Radio Trackside is also being revitalised. While the television operation is based in Petone and studio facilities at nearby Avalon, Radio Trackside broadcasts out of Auckland from Canwest RadioWorks studios in Ponsonby. Using studios in Wellington and Christchurch, Radio Trackside utilises the geographical spread of the racing talent pool. The Auckland studio hosts broadcasting from Peter Earley, Aaron White, Andrew (Butch) Castles, George Simon, Darren Tyquin and Alby Gain. The studio in Wellington is home to Mark Rosanowski, Des Coppins and Sports Desk commentators Grant Nisbett and Mark Stafford. Dean Lester and Greg O Connor broadcast from facilities in Christchurch. As part of the broadcasting review, Radio Trackside and Trackside Television have been working closely to achieve greater synergies between both media. While they work well together, they are continually striving to improve their integration and maximise services to their audiences. Screening Schedule for Trackside Television Productions The Box Seat Retro Mondays 8.30 pm Gallops Trials Mondays noon The Racing Show Mondays 9.30 pm Harness Trials Tuesdays noon On The Bunny Tuesdays 1.30 pm (12.30pm from 1 Oct) Gallops Trials Wednesdays am Racing Replay Wed Thursdays 7.00 am Harness Trials Thursdays am The Box Seat Preview Thursdays am Racing Replay Thur Thoroughbreds Fridays 7.00 am Racing Replay Hong Kong saturdays - September 6.00 am Racing Replay Thur/Fri Harness saturdays 6.30 am Ford Report saturdays 7.30 am The First Call saturdays 9.00 am (10am from 7 Oct) NZ Retro sundays am Racing Replay Saturday sundays 9:00 am And look out for these shows, produced independently of the Trackside team: Gillette World Sport Mondays 1.00 pm Racing World Mondays am Australian Racing Retro sundays pm John Tapp Inside Racing Mondays am The Catching Pen Tuesdays 9.00 am In The Gig Tuesdays am These programmes re-play during the week full details of times, and complete Trackside screening details, are on and on the SKY remote Electronic Programme Guide. Live racing broadcast starts at 2pm on Mondays and Tuesdays and from 12 noon for the rest of the week. The broadcast then runs until the close of racing, around midnight.

5 Website Security, Phishing and Internet Phishing is a process of tricking customers into giving up their account and pin numbers and, in some cases, credit card details. The scam caught the news spotlight last month when the TradeMe website was targetted. Administrators of the TAB website considered it timely to draw attention to security at A statement about Phishing and scams has been added to the website, under the Help section. To go straight to it, type this into your browser address bar: Its key message is this: The NZ Racing Board will never request your account number or pin number via . If you receive suspicious looking s from the NZ Racing Board or TAB, please contact us immediately and forward the to internet@nzracingboard.co.nz. TAB site security Once you have logged in to place a bet on the TAB site, you are on a secure site. You can confirm this on our site (and indeed on any site) with these simple steps: 1. Use your mouse to right-click anywhere on the betslip. A drop-down menu appears. Here are some examples of Phishing scam s sent to customers of financial institutions: We recently reviewed your account and suspect that your account may have been accessed by a third party. Protecting your account is our primary concern. As a preventative measure we have temporarily limited access to your account. To restore your access, please take the following steps to ensure your account has not been compromised... We regret to inform you that your account could be suspended if you don t re-update your account details. To resolve this problem, please click here and re-enter your account information. If your problems cannot be resolved, your account will be suspended for a period of 24 hours. After this period your account will be terminated... We recently noticed one or more attempts to log in your account from a foreign IP address and we have reasons to believe that your account was hijacked by a third party without your authorization... We are taking some security measures to protect our customers from online fraudulent login to their account and would like to take extra security measures to ensure that your account is safe and secure Click on Properties at the bottom of the drop-down list. 3. A grey box appears, in the middle it displays the Address: (URL) of the site you are on. 4. If its first five letters are https, the s in that address indicates that the site is secure. Read on for the explanation that appears on the TAB website, of how Phishing works (it s pronounced just the same way as the rod-line-and-hook variety) and what it involves. What is Phishing? Scammers typically create a web site that looks identical to an existing site. The customer assumes that they are looking at the real site and enters the requested details. The scammers then use this information to transfer money or withdraw cash. Phishing attacks are generally initiated by an requesting the customer updates their records. The looks official, may request urgent action and can be very convincing. They can also start with advice on security, boasting about the security of their own site.

6 What can you do about it? If you receive an unsolicited that warns you that an account will be shut down if you don t take immediate action, never reply or click on any links provided in the . Contact the company directly by using a trusted address or previously known web address or by phone. If you suspect a page is fake, and there is no site address given, then right click on the page, click on properties and check the address of the page. If the address has an IP address (eg rather than a domain name then it should be treated suspiciously. Do not enter any information and contact the real company as soon as possible. Other precautions Never send your account number or pin number via . Most is not encrypted and it could be hacked and your information used to access your account. If you are submitting personal information through a website, look for the padlock icon on the browser status bar (bottom right). This indicates your information is encrypted during transmission. The certificate can be checked further by clicking on the padlock icon. Also, secure sites display https at the start of the web address (the s indicates it is secure). If the padlock is not displayed right click on the login page, click properties and check the address starts with https. Review your credit card and bank statements as soon as you receive them and check for fraudulent transactions. Trackside Radio now on Kapiti Coast If racing is your passion, Radio Trackside is for you. Tune in for live racing, the latest racing results, news and views at the frequencies shown. Please note frequencies may change. Radio Trackside has further expanded its coverage, and now broadcasts on the Kapiti Coast. The frequency to tune to north of Wellington is 93.5FM, the latest addition to the racing radio station s coverage around New Zealand. Here s the latest map of Trackside Radio frequencies throughout the country. Inside Running is published by the New Zealand Racing Board. ISSN: Jackson Street, Petone, PO Box 38899, Wellington Mail Centre, New Zealand Phone: (+64 4) Fax: (+64 4) insiderunning@nzracingboard.co.nz