WeeklySA_AdminHARDEST HIT BY COVID: Modernising existing venues and developing new business models needed to save the sport of kings
Over the years horseracing has been the sport of kings because it was associated with the rich and famous such as the Oppenheimers and many such families.
One of the most famous owners of thoroughbred horses was no less a person than Bridget Oppenheimer, mother to Nicky and Mary. The only black person ever to be associated with thoroughbred ownership was the late Richard Maponya.
Therefore, black people in South Africa had very little to do with horseracing, only as punters, grooms (work with trainers in grooming the horse to be neat and clean) and workriders (their role is to get the horse race ready). No wonder the sport has always been accused of being elitist, discriminatory and lack transformation.
These accusations came sharply to the fore, when several people including probably the only black woman horse owner Phindi Kema, laid a complaint with the Public Protector for the biggest operator Phumelela at the time to be investigated for dominance in the market.
The other accusation levelled against Phumelela was that of or having allegedly abused state property in horserace courses like Turfontein, Gosforthpark, Newmarket, Fairview and Arlington in Port Elizabeth.
The biggest gripe for Kema was that these were state owned properties offered to Phumelela to facilitate the corporatisation of horseracing in Gauteng but Gosforthpark and Newmarket were sold at above market value and such income was pocketed by Phumelela.
Even though the Public Protector found against Phumelela, the latter successfully challenged the report by taking it on review and the report was nullified. Soon thereafter, just before South Africa was hit by the devastating Covid19, Phumelela filed for business rescue. The business rescue coupled with the Covid19 pandemic nearly decimated horseracing in South Africa.
There were fears that the lockdown instituted by government would ‘kill’ the sport. In the Business Rescue process a knight in shining armour was Mary Oppenheimer, who offered to save the situation. Recommendations made by the Gambling Review Commission set up by the department of Trade and Industry to look at Gambling in relation to horseracing in South Africa are worth mentioning to set the industry back in full gallop.
The Commission acknowledges that horseracing is a well-established and reasonably well-managed industry in South Africa, and though clearly facing major challenge it appears set to ride out the economic downturn as well as declining on-course and off-course betting on horseracing.
As one of the major employers in South Africa, the Commission recommends that for the industry to be more attractive to new especially younger punters, this requires a combination of two things: modernising existing venues and race formats, and developing new business models more closely integrated with other forms of gambling. Both of these changes are in line with world trends.
The current ownership and funding arrangements do not provide sufficient impetus for modernization. Furthermore, the sector seems constrained in its ability to make commercial decisions by its licensing conditions.
The Commission therefore offers the following recommendations:
1. Market forces should be allowed to dictate the number and location of tracks, as well as the number of races. Consideration should be given to separating the ownership of the tracks and the tote. The tracks could be funded through a combination of a levy on the gambling tote, bookmakers and online betting operators, as well as commercial rights, such as broadcasting rights for races.”
2. The current funding models for the industry should be reviewed to ensure that the tax rates and levies paid to the industry are standardised across the board to create a level field.”
3. The horseracing industry should be enabled to integrate its operations with other forms of gaming, especially slots.
4. Current proposals that the former Jockey Club, now known as the Horseracing Authority, should become a statutory regulator should be considered.
