On 22 March 1946 His Excellency the Governor-General appointed a Royal Commission to inquire into and report on the existing law relating to gaming, the present administration and control of practices relating to racing, and, generally, all other matters connected with gaming and racing. The Royal Commission conducted sittings during 1946 and 1947 and presented its report in December 1947.
Its major recommendation was that provision should be made for the legalisation of off-course totalisator betting; it also recommended that a scheme submitted by the New Zealand Racing and Trotting Conferences should be adopted.
Because of the controversial nature of this recommendation, the Government decided to refer the issue to the people by way of a referendum and, on 20 January 1949, His Excellency authorised the holding, on 9 March 1949, of a special poll under the Gaming Poll Act of 1948. The proposal contained in the voting paper was “that provision be made for off-course betting on horse races, through the totalisator, by means to be provided by the New Zealand Racing Conference and the New Zealand Trotting Conference”. A total of 623,625 votes was recorded (approximately 56 per cent of the electoral roll), 424,219 in favour of the proposal and 199,406 against.
The authority for the establishment, constitution, and operation of the Totalisator Agency Board to develop an approved scheme was then given by the Gaming Amendment Act of 1949. The scheme itself was approved by the Minister of Internal Affairs on 20 September 1950.
The board is comprised of eight members – the presidents of the New Zealand Racing Conference and the New Zealand Trotting Conference and three members elected from each of these conferences. The chairmanship of the board alternates annually between the two presidents. The Government has no representation on the board.
In general the main function of the board is to provide for the receipt of off-course investments at totalisator agencies established throughout New Zealand, the transmission of particulars of the investments to the racecourses for registration on the totalisator, and the subsequent payment of dividends on winning investments.
The board is also required to determine the distribution of profits annually from its operations among the various racing and trotting clubs.
The administration centre is situated in Wellington. Provision is also made for:
Head Office Collating Centre at Wellington. This centre collates all the figures received from district collating centres and transmits the results to the various racecourses at which meetings are held.
Branch offices (or district collating centres) coordinate the figures received from agencies under their control and transmit the results to the Head Office Collating Centre.
Agencies collate the figures of the investments received and forward these to district collating centres.
Investments are received and dividends paid at branch offices and at agencies. The new head office is at Lambton Quay, Wellington.
Cash investments at agencies and branch offices.
By telephone to a branch or agency against a deposit previously established at such agency or branch or against winnings which have been credited to the investor's account.
By postal instructions accompanied by cash or its equivalent at agencies or branches which have been nominated by the board as open for postal investments.
As the Government was determined that a betting-shop atmosphere would not arise, the following conditions were laid down in respect of all branches and agencies:
Where branches or agencies were established, no other business could be transacted on the premises.
No radios should operate on the premises within the hearing of the general public.
No information should be given on the day of the races as to the results of such races.
Credit betting not to be permitted.
No payment of dividends on the day of the races.
No seating to be available for investors, and loitering on the premises not to be permitted.
No advertising by branches or agencies, but small location notices to be permitted.
In general, the transactions should be similar to those carried out daily in banks and post offices.
Because of these conditions, no undesirable features in the operation of the scheme have as yet arisen.
The board, which commenced operations on 28 March 1951 with branches at Feilding and Dannevirke, now has 25 branches and 289 agencies. A very wide coverage of New Zealand has been achieved.
During the period 1951 to 1965 the total amount invested on the totalisators through the off-course scheme was £346,747,593. The board made profits during this period totalling £9,960,535, which have been distributed to the racing and trotting clubs on the following basis:
Fifteen per cent of the total annual profit being divided equally among all clubs.
The remaining 85 per cent being divided proportionately among the clubs in relation to the on-course and off-course turnover for each club for the particular year.
The off-course turnover for the year ended 31 July 1965 was £36,276,258, and the profit available for distribution to the clubs was £1,109,689.
The cost of the initial installation of the scheme was beyond the resources of the racing and trotting clubs and accordingly the Government decided that this cost would be met by a deduction or levy of ½ per cent (1 ?d. in the pound) on all investments, both on-course and off-course. This levy, which was imposed for a period of five years, provided ample funds for the initial establishment of the scheme.
The board derives its regular finance from a 7 ½-per-cent commission on all off-course bets placed on the totalisator. This is the same rate of commission as that received by racing clubs on their on-course betting.
Bets are accepted at branches and agencies, for all horse racing and trotting meetings held in New Zealand where a totalisator is operated on the racecourse. Details of all off-course investments are collated at the head office of the board in Wellington and telephoned to the individual racecourse, where they are pooled with the on-course investments.
Approximately 95 per cent of the bets received by the board at its branches and agencies are in cash over the counter, the remaining 5 per cent (approximately) being postal betting and telephone betting against moneys previously deposited with the board.
Over 60 per cent of racing and trotting meetings are held on Saturdays, with the result that the major portion of the business is transacted on Fridays and Saturdays. Ticket sales after 12.30 p.m. on Saturdays are negligible. All offices are open to the public on Mondays, or the next business day after a race day, for the payment of dividends. Bets are for win, place, or double. Only one double is available to off-course investors at each race meeting. The minimum amount of an off-course bet is 5s. for doubles and 10s. for win and place.
Racing and trotting clubs require that off-course betting figures for win and place be available for record on the totalisator prior to selling commencing on each race. Consequently, off-course bets for win and place must be lodged at a branch or an agency not later than 90 minutes before the advertised starting time of the race concerned. Double bets must be placed not later than two hours before the advertised time of the first leg of the double. Agencies and branches are allowed 18 minutes for collation purposes for win and place betting and 25 minutes for the first leg of the double. All transmissions of figures are carried out per medium of the telephone system.
The operations of the Totalisator Agency Board over the years have met with a minimum of criticism and there is little doubt as to the effectiveness of the scheme itself. It has satisfied a long-felt want so far as the off-course investors are concerned and has been responsible for the huge reduction in the volume of illegal bookmaking in New Zealand.
The scheme has attracted world-wide interest and several overseas countries have adopted the system either in part or as a whole.
by William Mouat Bolt, Executive Officer, Gaming Branch, Department of Internal Affairs, Wellington.