Mixed results as horse racing faces unprecedented challenges

The betting sector in Mauritius has demonstrated resilience and growth, despite facing various challenges. The industry is a significant part of the economy, contributing to entertainment and government revenues. However, it also faces regulatory, economic, and social challenges that impact its overall performance.

Lottotech Ltd leads the sector with a turnover of Rs 2,996.7 million and a profit before tax (PBT) of Rs 185.1 million for the financial year ending December 31, 2022. This strong performance indicates the popularity of lottery games among Mauritian consumers. The profits from Lottotech are mostly reused for national solidarity needs. SMS Pariaz Ltd also showed impressive results, with a turnover of Rs 697.2 million and a PBT of Rs 234 million in 2021, highlighting its dominant position in sports betting.

However, not all companies in the sector are thriving. Play on Line Ltd reported a turnover of Rs 665.8 million but faced a significant loss of Rs 8.2 million for the financial year ended June 30, 2023. Similarly, Automatic Systems Ltd reported a turnover of Rs 317.1 million but incurred a substantial loss of Rs 49.1 million for the same period. These figures underscore the financial pressures and competitive challenges faced by some operators. Other companies like Top Turf (Mauritius) Limited and Flacq Jeux Ltée have shown stable growth with turnovers of Rs 367.8 million and Rs 219.6 million, and PBTs of Rs 18.7 million and Rs 34.9 million, respectively. These performances suggest that niche markets within the betting sector can achieve profitability.

The local horse racing betting scene has seen significant upheavals. People’s Turf PLC Ltd reported a turnover of Rs 76.8 million with a PBT of Rs 7.3 million for the financial year ended December 31, 2022. Regulatory changes and the closure of racecourses due to the pandemic have affected revenues. These upheavals highlight the volatility of the sector and the need for robust strategies to adapt to changing circumstances. Other challenges in the sector include stringent regulations aimed at curbing problem gambling and ensuring fair play. The economic climate, influenced by factors such as inflation and exchange rate fluctuations, also impacts disposable income and betting revenues. Social issues, including gambling addiction, remain a concern, prompting calls for increased responsible gambling measures and support services.

Thus, the betting sector in Mauritius showcases both potential and obstacles. Leading companies are thriving, while others struggle with financial sustainability. Addressing regulatory and social challenges will be crucial for the sector’s continued growth and stability.