NEW METHOD OF CALCULATING BETTING DEDUCTIONS
From 1st August 2011 in New South Wales, the Northern Territory, Queensland, and Victoria a new method of calculating betting deductions will come into effect. Other States and the ACT are likely to follow shortly thereafter, with the possible exception of South Australia where the rules of betting are not under industry control.
Q1. Why are betting deductions necessary?
Because bookmakers are required to refund all moneys wagered on any horse withdrawn from the race and the odds of the remaining runners decrease.
In this example race, the bookmaker accepts wagers $20 each runner. His liability is $100 each runner. Column 5 describes the revised handle, resulting from withdrawal Horse A; Column 6 describes the revised liability, due to 20c deduction of winning tickets. Observe that without deductions, the bookmaker would have had liability 100, handle 80, LOSS = $20.
|Runner||Div||Wager$||Payout Liability||Money Refunded||Revised Liabilities|
Q2. How have betting deductions been calculated up until now?
A scale of deductions was implemented nationally on 1st August 2000 on the recommendation of an Australian Racing Board working party made up of representatives of Principal Racing Authorities, bookmakers and stewards. The ARB had endorsed the current schedule in early 2000 and it was then adopted in each State and Territory by the body responsible for the rules of betting.
Q3. Why are we changing to a new method?
A number of submissions have been made to the ARB in recent years proposing that the scale could be improved. Some of the deficiencies in the old scale of deductions included that:
- In the event of non-simultaneous withdrawals the Stewards were required to add together deductions. This resulted in double-dipping of winning tickets after multiple non-simultaneous withdrawals.
- Deductions were the same regardless of the sum percentage of the bookmakers’ market at the time of withdrawal(s).
- Deductions were the same regardless of the price of the winner.
- Place deductions were the same regardless of the odds of the place-getters.
Q4. Who is responsible for making this change?
Introduction of this new method is a joint initiative between the Australian Racing Board and the Australian Bookmakers Association. It has been developed by Intelligent Wagering Systems Pty Ltd and implementation is being carried out with the assistance of the National Chairmen of Stewards and the Australian Prices Network. The regulations which govern betting deductions are part of the Rules Of Betting.
Q5. What does the new method do?
The new method utilises an algorithm which enables a re-framing of markets to achieve the pre-withdrawal market percentage.
NATIONAL SCALE OF DEDUCTIONS EXAMPLES HIGHLIGHTING THE DIFFERENCES BETWEEN THE OLD SCALE AND THE NEW METHOD.
A race of 10 runners programmed to jump at 12.45pm. The race is won by number 1.
The odds of the runners are;
Number: 1 - $11
Number: 2 - $11
Number: 3 - $21
Number: 4 - $21
Number: 5 - $3
Number: 6 - $3
Number: 7 - $8
Number: 8 - $8
Number: 9 - $5
Number: 10 - $21
TOTAL MARKET 144%
Scratch Number 5 a $3 chance out of this market.
Deduction under old scale: 31c and 21c regardless of winner or placegetter.
Under the NEW MODEL the win deduction would be 22c if horse numbers 1,2,6,7,8 or 9 win, 20c if horses 3,4,or 10 win. The place deduction ranges between a low of 15c for horse number 6 up to a high of 22c for numbers 1,2,3,4 and 10.
Scratch Number 7 an $8 chance out of this market.
Deduction under old scale: 12c win and 11c place regardless of the winner or placegetters.
Under the NEW MODEL the deduction is 7c for all runners with the place deduction ranging from a low of 7c for numbers 5 and 6 to a high of 13c for runners 3, 4, and 10.
Scratch number 5 ($3) at 12.30 and then number 7 ($8) at 12.42pm after a new market has been formed. The following is the NEW MARKET FORMED AFTER NUMBER 5 WAS SCRATCHED AT 12.30PM.
Number: 1 - $8
Number: 2 - $8
Number: 3 - $17
Number: 4 - $17
Number: 6 - $2.3
Number: 7 - $6
Number: 8 - $6
Number: 9 - $4
Number: 10 - $17
Deduction under old scale: all bets prior to 12.30pm are subject to a deduction of 47c win and 35c place,(being the addition of 31c and 21c for number 5 and 16 and 14 for number 7 at ($6 in the new market). All bets between 12.30 and 12.42 are subject to 16c win and 14c place.
Under the NEW MODEL (using number 1 as the winner of the race) the deductions would be all bets prior to 12.30pm on the winner less 31 and 33 and all bets on the winner between 12.30 and 12.42 are subject to 10c and 15c.
This is an example of a very high percentage market normally found in the country and highlights the very significant change between the current method of calculation and the new model.
Number: 1 - $3
Number: 2 - $4
Number: 3 - $4
Number: 4 - $4
Number: 5 - $6
Number: 6 - $6
Number: 7 - $8
Number: 8 - $10
Number: 9 - $10
TOTAL MARKET 174 %
Scratch Number 2 ($4)
Deduction under old scale: 23c and 18c regardless of winner or placegetter.
Under the NEW MODEL the deduction would be 5c the win for each horse with the place deduction ranging from 11c to 17c.
For more information, please find the followings FAQ's