WAP announcement for August 2022
WAP announcement – anticipated release date of Thursday 18th August
Greyhound Racing SA Limited (GRSA) wishes to advise participants that the Wagering Activity Payment (WAP) for the month of July 2022 will amount to $64,000. For reference; the WAP for the same month last year was $242,000. The result corresponds with the predicted softening of wagering revenue as communicated in recent months in these same announcements.
The GRSA Board are acutely aware of the mounting cost pressures to participants. While it wishes there was sufficient government funding to enable more wholesale changes to prizemoney; for the time being it has agreed to increase the starter fee at all GRSA TAB tracks from $20 per dog to $40 per dog from the 1st of September 2022. This seemingly small change will amount to additional payments to participants of $300,000 per annum. The GRSA Board are hopeful this modest change can still provide significant benefit for many participants, while the Board and management advocate for more funding from government.
Payments will be made to participants this coming Friday, 19th August.
The WAP calculation for the month is as follows:
|
|
Current Month |
|
|
Net Wagering Revenue * |
|
$2,022,000 |
|
Multiplied by |
|
X |
|
WAP Benchmark Return (50%) |
|
50% |
|
equals |
|
= |
|
Payout |
|
$1,011,000 |
|
less |
|
- |
|
Prizemoney ^ |
$781,000 |
|
|
Trainer Fees |
$82,000 |
|
|
Breeder bonuses |
$84,000 |
|
|
Total payments to Participants |
$947,000 |
$947,000 |
|
Equals |
|
= |
|
WAP for the month |
|
$64,000 |
* Net Wagering Revenue is the combination of all corporate race field fees and Tabcorp product fees, less the fees associated with the generation of Tabcorp product fee from wagering on interstate racing product.
^ Prizemoney includes payments to winners, places und unplaced of all South Australian races. Following feedback from participants in December 2020, additional money for feature races is averaged over the year.
The table below shows the total WAP position for the year to date.
|
Month |
Indexed Net Wagering Revenue (NWR) |
NWR x 50% |
Returns (ex WAP) |
WAP
|
WAP YTD |
|
A |
B |
C |
B less C |
|
|
|
($’000) |
($’000) |
($’000) |
($’000) |
($’000) |
|
|
|
|
|
|
|
|
|
Jul 22 |
2,022 |
1,011 |
947 |
64 |
64 |
Distribution between Trainers and Owners
GRSA would like to remind all participants who receive a WAP that the payment is the equivalent of prizemoney. If you are currently responsible for distributing prizemoney to another party (eg owners) then the same approach applies to WAP payments.
From GRSA’s perspective, the position in relation to third parties is reflective of OzChase records and is as follows:
- If GRSA have been notified of an ownership split [which is recorded in OzChase] then you DO NOT need to make a payment to owners for the WAP because GRSA will do this automatically, however;
- If you ordinarily forward on payments to owners of your own accord, then you DO need to do the same for the WAP. Each remittance will include the name of the dog for which the WAP is being made.
Comparison table showing the impact of WAP on a selection of prizemoney levels
|
Month |
Category 1 Meetings GRADE 5 530m |
Category 2 Meetings GRADE 5 531m |
Category 3 Meetings GRADE 5 512m |
Category 2 Meetings GRADE 5 400m |
Category 3 Meetings GRADE 5 400m |
|
Base stakemoney levels excluding WAP: [Minimum paid out to participants]. |
|||||
|
Base |
$3,585 |
$1,645 |
$1,005 |
$1,430 |
$880 |
|
Final stakemoney levels paid out including WAP: |
|||||
|
Jul 22 |
$3,908 |
$1,793 |
$1,095 |
$1,559 |
$959 |
Example to help participants understand the WAP they receive
It is not uncommon for GRSA to receive requests for more information in relation to how the WAP is calculated for their particular dogs(s). The example below is provided to assist in the general understanding of the calculation.
Assumptions:
In this example, assume the owner/trainer received $1,000 in prizemoney for any/all races for the month.
|
|
EXAMPLE |
|
|
Net Wagering Revenue |
|
$1,800,000 |
|
Multiplied by |
|
X |
|
WAP Benchmark Return (50%) |
|
50% |
|
equals |
|
= |
|
Payout |
|
$900,000 |
|
less |
|
- |
|
Prizemoney |
|
|
|
Trainer Fees |
$80,000 |
|
|
Breeder bonuses |
$70,000 |
|
|
Total payments to Participants |
$850,000 |
$850,000 |
|
Equals |
|
= |
|
WAP for the month |
|
$50,000 |
In this the total prizemoney (paid to all participant) is $700,000.
In this example, the total WAP is $50,000.
In this example, the owner/trainer would receive a WAP of $71.43, calculated as:
$1,000 ÷ $700,000 x $50,000 = $71.43
Participants should note that:
- WAP is not payable for any prizemoney received in relation to feature races [where total stakes are above $5,000];
- Trainers’ fees and other bonus payments are not included in the calculation of the share of the WAP; and
- It is a requirement that a greyhound has to have raced and received prizemoney during a month to be eligible to receive the WAP payment for that month.