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Price Tote) >> Who Benefits? >> A Better ProductImproved services and products mean better entertainment for the public and therefore a greater ability for the racing industry to compete in the entertainment market place. The SPT is not only a better system because it supplies something long sought after, namely set prices, but also because it is more fair. No RiskFor the industry to be able to increase turnover without increasing risk is a considerable advantage. Bookmaker-type systems have the risk of a loss on an event. Therefore, increased turnover for bookmaker systems may mean a loss whereas the SPT cannot lose. Not only that but the SPT can accommodate all bet types within the one system and it can guarantee the full rate of commission. And, of course, it can maintain the integrity of the system by combating price manipulation. Pari-mutuelFurthermore, there is no reason to believe that the SPT will be affected by the restrictions on non-parimutuel systems which are found in some jurisdictions. Although the SPT can function in other ways, its main general form is believed to be pari-mutuel in nature and therefore it is likely to be acceptable in places where only the pari-mutuel system (and not bookmaking) is allowed, such as in the United States. This form of the SPT is also often the most practical form and so it is the one most likely to be generally implemented in other places as well. Therefore, some jurisdictions that require betting to be pari-mutuel may not even need legislative changes. In other places, the SPT may be conceptually close to what has already been legal for many decades and so there should be far less difficulty in getting legislation passed than might otherwise be the case. However, for those jurisdictions that do not require pari-mutuel betting, there is also a version of the SPT that can function in a way which is not pari-mutuel in nature. TurnoverAs it provides an improved product, particularly set prices but also higher variable prices, it is believed that the SPT will increase turnover (handle) considerably for the pools to which it is applied, probably by at least 20% and perhaps as much as 50% or more. Net Profit and Prize-moneyIt seems clear that the SPT will increase net profit by an even greater rate than the increase in turnover. This is because many of the costs of the existing system will stay the same in real terms over time (e.g. tote equipment, costs of running race meetings, cost of outlets), and typical extra costs that might be expected, such as the costs of a traditional bookmaking system (e.g. market makers), are not required. Indeed, the SPT would only need to increase turnover by about 1%, or at most a few percent, to provide more net profit than most sports betting installations run by TABs. Groups That BenefitThose involved in the racing industry who seek an improvement in the wagering entertainment product will find that the SPT provides features of interest to them. Examples of the types of groups which can benefit and the sorts of advantages that the SPT can provide to those groups include:
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