The main operator of tote-based horseracing betting in South Africa has seen a decline in profits for the six months to the end of January.
Phumelela Gaming and Leisure, thought at one stage to be interested in acquiring the UK Tote business, saw sluggish business and the poor strength of the South African rand stunt their growth.
Attributable earnings fell 17% for the period to R32million, while their income from international operations also dropped significantly, from R55m to R39.8m which was a slump of 28%.
Rian du Plessis, the company’s chief executive, said Phumelela was considering the introduction of new betting products.
“We will be looking at introducing rugby, cricket and maybe golf bets to boost our turnover this year,” he said.
It’s already been a tough year for Phumelela and it could conceivably get worse for the company if and when the government make a decision over a new system of taxation.
Du Plessis already commented that the country’s fourth largest sport, horseracing, would be “destroyed” by the new tax thanks to the detrimental effect it would have on Tote betting.
Elsewhere, the casino rescue team that is South East Asia is coming to help out one and all yet again. Friday saw Taiwan officially present the plans to bring casinos to the region and today it’s been announced that by September a decision is to be made.
Yang Suei-Sheng, a top official from Matsu, one of the two Taiwan-controlled island groups off the Chinese coast, said, “Casinos are more than gambling.”
Yang continued: “It is an industry which can generate investment and lots of jobs,” while putting a rough estimate of Tw$10billion ($354million) being earned from mainly Chinese visitors.