WAP announcement for June 2022
Greyhound Racing SA Limited (GRSA) wishes to advise participants that the Wagering Activity Payment (WAP) for the month of June 2022 will amount to $145,000, taking total payments for the year past $2.1 million.
GRSA is aware of an expectation of an Industry Performance Reward Payment (IPRP) being made. Unfortunately, there will be no IPRP at this time because wagering revenue over the second half of the financial year was much lower than the first half. While this is likely to be a disappointing outcome for many, the IPRP was never a guarantee and was always predicated on recent performance. In any case, participants should be aware that GRSA will pay-out 53% of net wagering revenue in FY22.
Payments will be made to participants this coming Friday, 15th July.
For some time GRSA has expressed a view that wagering revenue was showing signs of softening. The macro-economic factors of significant inflation and the biggest increase to interest rates in twenty years is almost certainly reducing the disposable incomes of the wagering public. That in turn is flowing through to reduced wagering revenue. Race field fees from corporate bookmakers account for 80% of GRSA’s wagering revenue and as can be seen from the chart below, the uplift in revenue that occurred at the beginning of FY22 has now fallen to below FY21 levels (June 2022 compared to June 2021).
The GRSA budget for FY23 anticipates a reduction in corporate revenue of $2.4 million [from $22.8 million to $20.4 million] in this new financial year (see the dashed line in the chart above). If GRSA’s prediction is right, then WAP’s during FY23 will be very modest and there will be a number of months where no WAP is payable. Importantly, if revenue exceeds forecasts, then the WAP model (which guarantees a minimum payment of 50% of net wagering revenue) operates in a way that pays out any upside to participants as soon as practically possible.
The WAP calculation for the month is as follows:
* 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.
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
