The rights to export South African horseracing are held by Phumelela Gaming and Leisure Limited ("PGL") and are exercised through its international division, Phumelela International ("PI")
PI has commercial relationships with 41 international jurisdictions across six continents. These relations enable the export of live South African horseracing and international football pools globally, earning PGL foreign revenue on South African racing and football pools.
Daily imports of live television pictures of foreign horseracing provide domestic punters with up to seven times more horseracing betting opportunities daily.
Racing in South Africa occurs on 364 days a year, with approximately 440 race meetings scheduled and broadcast each year. The television picture of South African racing is exported to various countries which PI has relations with as an encrypted, live audio-visual signal, using a combination of satellite, fibre-optic and web-streaming technologies. These distribution mechanisms permit the export of South African racing in the following formats:
A “clean feed” television picture of South African racing, which excludes any South African-produced television graphics displaying betting patterns and tips on the races. This production enables the customer to integrate PI’s racing picture into their own domestic television broadcast, and effectively distribute (simulcast) South African racing alongside their own racing, in a manner which suits their home markets;
• A South African-produced television channel branded Tellytrack 2 (International), which is sent to a number of international markets. This channel integrates other international racing which PI has the rights to distribute, with racing from South Africa. The channel includes a line-up of South African, Dubai, Singaporean (in territories where permission has been granted and where tote betting paths are available) and Zimbabwean racing; and
• A specifically tailored television production, including customised graphics of South African racing, which is produced for the Cantonese market (Singapore, Malaysia and Macau) and is branded as Tellytrack 3 (Asia).
These three formats are sold to bricks-and-mortar betting operators (tote and fixed odds), online betting operators and betting exchanges around the world, with revenue streams earned being dependent on the type of operator procuring the product.
Tote operators will typically pay a content fee based on an agreed percentage of turnover they generate in their jurisdictions on South African racing. This turnover could either be generated on a standalone basis in the customer’s home market or transferred into the South African-based tote pools through a process termed commingling, in which case a small additional fee is also levied.
In certain territories, the most effective mechanism for reaching the fixed-odds bookmaker retail outlets is through the sale of distribution rights to local agents for a predetermined fixed monthly fee.
In territories where the audio-visual rights to South African racing are purchased directly by independent bookmaker groups, a fixed monthly fee is levied.
Revenue is also earned from internet operators authorised to receive and bet on the South African racing content. Where live video streams are made available to punters over the internet, a fee is also charged per stream viewed over the internet.
Live horseracing from 12 other countries is currently imported to supplement South African product and expand the product offering made to punters in our local market. The importation of foreign product strengthens reciprocity with other jurisdictions, which generate revenue for PGL. This supplementary product is beamed via satellite from the various territories, down-linked in the Tellytrack studios in Rivonia (Johannesburg, South Africa) and simulcast with South African racing, as part of the domestic Tellytrack channel distributed by DStv to home viewers and through decoders at licensed betting shops.
In certain instances where PGL is unable to commingle local pools into a foreign tote, standalone pools are created in South Africa. However, where PGL is able to commingle, SA punters have the opportunity to bet into larger pools situated offshore.
ISLE OF MAN
Through a strategic partnership with Tabcorp in Australia, PGL jointly owns an international tote operation on the Isle of Man ("IOM"), known as the Premier Gateway International ("PGI"). This subsidiary associate is licensed to conduct pari-mutuel betting on the island
PGI uses the same technology deployed in the South African tote business. However, PGI is the world’s first 24-hour tote operation. PGI operates as a worldwide totalisator hub, connecting punters, tote operators and internet betting websites from around the world to each other, effectively permitting the creation of pools with far greater liquidity. The IOM effectively acts as a connectivity conduit for a variety of customers to approximately 900 tracks or totes around the world.
PGI also hosts the international totalisator pools for the Dubai World Cup Carnival, which includes the Dubai World Cup ("DWC"), the richest race in the world. The DWC commingling operation is the second biggest in the world and sees 60 foreign totes connecting to PGI to create truly global pools.
Mr Dean Sawarjith
Phumelela Gaming & Leisure
e-mail – [email protected]ela.com
Tel: 2711 681-1709
Mobile: 2782 044 7749
Fax: 2711 681-1718