New betting engine to drive revenue growth

NZ Racing Board & Media and Gaming

Media Statement

Embargoed for publication until midnight Thursday 15 October

New betting engine to drive revenue growth for racing

The New Zealand Racing Board will install a new, state-of-the-art betting system called Typhoon to replace the TAB’s ageing Jetbet system by December 2010.

NZ Racing Board Chief Executive Andrew Brown said the new betting engine would enable the organisation to drive revenue growth for the racing industry and grow its contribution to GDP beyond the current 1.3 per cent.

He said the existing Jetbet system was very old and is holding the business back.

“Jetbet is nearly 28 years old, which is ancient in technology terms. It was launched in January 1982 – the same year as the Commodore 64 computer.

“The move to a new system is long overdue and I’m delighted that we’re building a platform from which we can launch so many more products and services quickly and efficiently.”

Mr Brown said the new system would be user-friendly and responsive and more capable than Jetbet.

“Typhoon enables us to be much more agile and responsive in meeting our needs and those of our customers,” Mr Brown said.

Typhoon would provide the following advantages:

·         More betting events, including more race meetings and sports betting options. (The TAB cannot offer betting on some major international races because of the limitations of Jetbet).

·         Better customer service and easier processing of bets – benefitting the TAB’s agents and customers.

·         Greater real time visibility and reporting that will enable improved management of any problem gambling issues.

·         Improved systems for better decision making by the NZ Racing Board management through real time reporting.

·         Ability to introduce new products and enhance existing ones much more quickly and efficiently.

“We’ve done lots of research worldwide and this is the best and most cost-effective solution. It is a $5 million investment in a system that will enable strong growth for the next 10-15 years,” he said.

“Payment will be spread out over the course of the project and will depreciate over the next 5-10 years, which means the annualised cost to the business will be more than compensated for by the benefits the new system will deliver,” he added.

“The racing industry, its stakeholders and TAB customers deserve the best products and services, which the New Zealand Racing Board and the new Typhoon system will deliver to them.”

Mr Brown said that along with a fast and reliable service, Typhoon would significantly improve the TAB’s capacity to compete against offshore operators, who return nothing to New Zealand racing or sports or to the New Zealand economy.

Media and Gaming Managing Director Nicholas Plowman said the deal between the two organisations will result in a commercial and technology based partnership, which will ensure the NZ Racing Board can take a market leading position in an increasingly competitive global entertainment market.

Mr Plowman said Typhoon will enable the NZRB to respond to customer demand and will help grow new revenues for the racing codes, clubs and New Zealand sport.

“We are excited for the NZRB in their far reaching decision, for the public in their enjoyment of a bet, and for the industry in its improved returns. With Typhoon, everyone wins,” he said.

Ends

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