NSW TAB Introduces Flexi-betting System

Trying to get a leg up on the increasingly tight betting market in Australia, the New South Wales TAB is hoping its latest option for bettors will give it a leg up on the competition, namely Tabcorp.

Monday NSW TAB introduced Flexi-betting, a concept that allows racing players to take almost any multiple-combination exotic pari-mutuel bet for any total outlay that they choose.

Flexi-betting will allow the lower-range bettors a chance to get in on such bets at trifectas, superfectas and others, which in the past had been out of reach to them for cost reasons.

NSW TAB spokesperson Peter Fletcher feels Flexi-betting benefits punters, because the bettors can pay in for less money and get a percentage of the total prize, as opposed to placing a high-dollar bet and getting all of the jackpot back.

"In effect what we have done is thrown out the limitations of unit-based betting," he said. "We have redefined such bets in terms of a total outlay on the transaction spread evenly across the combinations taken. In this way we have broken down the per-combination spend to amounts as small as one-ten-thousandth of a cent."

"We are very exited about this concept, which is available for the first time anywhere in the world," said Fletcher. (A similar type of system is believed to exist in South Africa, but with fewer options.)

NSW TAB is seeking a patent on its system and is eager to attract new bettors.

Getting the word out about Flexi-betting has been somewhat of a challenge for the company though. NSW TAB is not allowed to advertise its services outside of the region, and cannot even advertise on the Sky Channel, the television station that it owns.

Fletcher said the advertising regulations do put limitations on his company, but they are hoping to attract customers through other means.

"It (the regulations) restricts our marketing ability in the other states, however racing media reports and ‘word of mouth’ will soon spread the word," he said. "Interstate players are free to operate telephone or Internet betting accounts with us."

In addition to being able to buy into the more exotic multiple bets, Flexi-betting does the complex math that comes with making the bets.

"The main benefits to customers are that they don’t need to work out in advance the complicated mathematics involved with multiple-combination bets, boxed bets, standouts, bankers, etc., and their costs," he said. "They now can afford to take almost any bet at their exact chosen outlay by buying a percentage of the normal $1 unit."

For a minimum outlay of $5, or the equivalent of at least one percent of what the multiple bet would cost on a $1 stake, punters can enjoy the thrill of a box trifecta (first four) or superfecta (first six) including any number of horses.

When the bet is made, either by a marked ticket or over the telephone, the computer automatically calculates what percentage of the bet the punter will receive. The payout percentage is based on what the bet would normally cost on a stake of $1. So, for example, if the punter bets $15 on a five-horse box trifecta, which would normally cost $60 on a $1 stake, he or she has purchased 25 percent of the bet. If the trifecta comes in and the dividend for the $1 stake is $200, the punter collects $50 from that amount.

Fletcher said the concept of Flexi-betting had been in the works for the last year. The software to run the program through both its website and over the telephone was developed in-house by NSW TAB.

Despite little advertisement outside of New South Wales, the first day saw plenty of action, according to Fletcher.

"The first day response was fantastic," he said. "Market share of the three bet-types involved all increased significantly on the day."

While the response was good for the first day, Fletcher said the company is banking on interest growing as more and more bettors sample Flexi-betting.

"We believe the real upside is to come when the majority of customers actually become aware of and accustomed to the new flexi option," he said.

In addition to increasing the pool of bettors sampling Flexi-betting, NSW TAB may also increase the Flexi-betting options.

"We will look at the possibility of extending flexi to some of the other bet-types including exacta, quinella, and doubles in the next few months," he said. "Although it appears to have greatest appeal in the higher-contingency products, trifecta and up, we will explore our options."

Exploring other options for NSW TAB also includes securing a patent for the Flexi-bet system. Fletcher said the move is hoped to give the company a leg-up in the tight TAB market in Australia. He expects other TABs to follow suit with offering similar type options if Flexi-betting is a success for NSW.

"We expect the concept to be very successful," he said. "We have also lodged a patent application to protect the unique commercial aspects of the product. The other Australian TABs will no doubt be monitoring our success or otherwise, and will then make individual decisions as to their responses."