Forum Archive Index - January 2001

[Marilyn Munroe <who.c@res.co.nz>]

There has been previous discussion speculating on the effect a New South
Wales Government inquiry will have on the New South Wales TAB.

A large proportion of Australian States revenue comes from handouts from the Australian Federal Government. One of the few sources of independent revenue for the states is gaming duty. It would therefore be unlikely that the NSW state government would give up a large proportion of its income which did not come from Canberra.

The key to TAB profitability in my opinion is their share of the pokie market. They have entrenched opposition in the form of leagues clubs. They need to be able to place their machines in other entertainment locations in the state.

The proliferation of pokie machines can quite easily get out of hand (e.g. Queensland) along with the social problems associated with type of gambling as well as public opposition to them. Therefore the management of TAB need to also manage the political risk associated with this type of business, and use sensitivity in trying to increase the numbers of one armed bandits.

I assume that the horse race wagering side of the business faces the same problems as in N Z. That is a falling public interest in horse racing and the gambling associated with it. I would consider the punting on the gee gees side of their business to be a marginal operation.

Disclosure hold TAB

Finally a quotation about gambling from Mario Puzo, from his novel Fools Die

"The more you gamble the more the arithmetic grinds you into dust"

Boop-boop-de-do Marilyn ---------------------------------------------------------------------------- http://www.sharechat.co.nz/ New Zealand's home for market investors http://www.netbroker.co.nz/ Trade on Credit, Low Brokerage. Join now. ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/forum.shtml.