October
JanuaryTerms of confusion
I’m confused by the Victorian Wagering Review Terms of Reference, which ask: "Is gross revenue superior to turnover as the preferred long-term industry funding model for product fees and if so what is the rate of return (%) required to maximise customer outcomes and the long-term industry funding (via product fees)?"
According to my computer synonyms for "revenue" are income, proceeds, profits, returns, takings. And for "turnover" they are income, earnings, revenue, proceeds, return, yield, takings.
They seem to me to be the same.
I had always been under the impression that the wagering review was about assessing the various benefits/detriments of the "gross revenue" model, meaning all of the turnover on a particular race or exotic bet type, and the "gross profit" model, meaning the figure left after the wagering operator pays out winning bets and deducts his/her expenses/overheads.
Alex Risk
Geelong West (Vic)
• Reply: While "turnover" and "revenue" mean pretty much the same thing in the dictionary, "revenue" has taken on a different meaning for the purposes of this debate. "Gross revenue" refers to the wagering operator’s income from bets (turnover) less payouts to winning punters. Other expenses and overheads are not taken into account, however, which they would be in determining the operator’s profit.
-