SA faces a multitude of complex challenges that sometimes seem insurmountable. Nowhere is this truer than in KwaZulu-Natal . After being badly affected by the Covid-19 pandemic, riots and floods, one would suppose that the provincial government would be preoccupied with resuscitating the precious businesses and jobs that remain in the province.
The pandemic, riots and floods have not been the end of the province’s woes, with the recent blockade of the N3 highway estimated to have cost the province more than R300m. In addition, Durban’s beaches are unsafe to use due to the uncontrolled outflow of sewage, and there are likely to be disruptions to water supplies for at least a year.
As many residents of the province know all too well, the Hollywoodbets Durban July is a unique and high-profile event. But what outsiders to the industry may not know is that the industry is often loss-making. For example, Gold Circle forecasts a loss of R106m for the 2021/2022 financial year; this is after accounting for the R66m betting tax contribution. Without the betting tax contribution the losses would be around R172m.
A reduction in the income of Gold Circle will also seriously affect the quantum of the stakes it must pay to the connections of the winning horses in every race. Stakes must keep pace with inflation. Diminishing stakes discourage racehorse owners. Without owners the racing industry collapses.