NEWS
Australian tote company promises improved technology
Posted: Wednesday, March 10, 2010 2:20 PM
by Frank Angst
Believing the U.S. pari-mutuel industry is ready for a better tote provider, Australia-based Media and Gaming hopes to make a splash in North America.
The company’s tote technology and wagering platform, known as Typhoon, powers wagering sites in Australia and New Zealand that handle bets on horse racing and other sports. On February 23, the North Dakota Racing Commission granted a tote license to the company.
Winston Satran, the commission’s director of racing, said the tote software was reviewed for several months before being awarded a license. Media and Gaming also is the parent company of Typhoon Pools, an advance-deposit wagering (ADW) operator licensed in several countries for pari-mutuel and sports wagering. No other company associated with Media and Gaming requested an ADW license in North Dakota.
Typhoon Pools Managing Director Nicholas Plowman said the company does not yet have any agreements with ADW companies or other wagering providers in the U.S., but he is confident his tote company could help U.S. racing, which he said is falling behind other forms of Internet wagering because of limited tote capabilities.
“All existing tote systems, whether it’s in the U.S. marketplace or in any other racing jurisdiction around the world, are old,” Plowman said. “Typhoon is new. It was built by one of the best engineering teams in the world. We’ve spent many, many millions of dollars on its design and it’s the first system built in the post-Internet era.”
Based in Norfolk Island, Australia, Typhoon has handled wagers on the Tour de France and professional golf events that have featured nearly 200 competitors. Plowman said Typhoon could offer pari-mutuel wagering on an unlimited number of entries in a Thoroughbred race or on gimmick bets, such as future wagers.
Plowman, who sees increasing opportunity in international racing, said Typhoon offers customers multiple languages to choose from and can cross different time zones worldwide. Typhoon can deliver breakage down to the penny, if requested. From an operational standpoint, Plowman said the system is extremely fast and does not require a daily reboot.
Plowman believes these features are needed to compete for the gambling dollar. Since 2007, pari-mutuel handle on Thoroughbred races in the U.S. has decreased 16.3%, off by more than $2-billion.
“The core of racing’s problem is the fact that technology is just not keeping up with what consumers want from an entertainment perspective,” Plowman said. “Whether it’s online this, or online that, legal or not, consumers’ discretionary spending on wagering is always going to be directed to where they get the best customer experience and the best product and the best price. That’s invariably either sports betting or online poker. This is what’s happening.
“Racing is losing market share to the more dynamic product. Racing can’t really offer that because it’s broken, it’s creaky. Typhoon is new. We have generated a lot of interest in this software in Australia, Europe, and other markets.”
With its focus on international wagering and previous use on book-making sites, it is unclear if Typhoon is pursuing traditional account wagering agreements in the U.S. Plowman only confirmed that no U.S. agreements are in place yet.
Plowman was amazed at how many people expressed interest in his product when he visited the U.S. in February. “We’d like to think we could work with all participants in U.S. racing, just to sit down and let them see what Typhoon might mean in terms of generating returns back to racing,” Plowman said. “I just want people to keep an open mind about a new product. Have a look; I think it can really benefit racing.”
Another international wagering company, Betfair, entered the U.S. market in February 2009 after it acquired Television Games Network. Its primary business, exchange betting, is not legal in the U.S.
Frank Angst is senior writer for Thoroughbred Times
