"By legalising sports betting... the government could earn annual revenue of up to RM3 billion ringgit through taxes," Vincent Tan said. "Why are some politicians so against this?" Maybe they are against it because they know the profits will help finance the massacre of Pakatan Rakyat in the next general election.
THE CORRIDORS OF POWER
Raja Petra Kamarudin
This is what Tulang Besi wrote:
Who is Vincent Tan trying to fool? He’s offering RM525m for charity (what a paradox). Yet, studies have found that the potential for sports gambling is in the billions PER DAY.
Allow me to cite from an article writes by Kang Siew Li:
‘In a report dated May 26, 2006, Mayban Securities had estimated that the value of daily legal gaming was RM850 million, with illegal gambling estimated at around the same amount. This gives the total size of estimated daily gambling in Malaysia at around RM1.7 billion.
"Assuming that this amount is doubled during the World Cup month, there may be an additional RM1.7 billion being gambled daily," the report had said.’
That would mean Vincent could make at least RM500 million PER DAY during the World Cup. After the World Cup, there’s the English Premier League, FA Cup, Champions League, UEFA Cup and many more prestigious football competitions throughout Europe.
I expect Vincent Tan will recoup the RM525 million he plans to donate to a charity body he owns in a blink of an eye. It’s only a day’s worth of business, Vincent.
So, no, you don’t get to fool us again, Vincent Tan. The people already know the role you played in toppling the Perak government. Do you really think the people will be fooled again by another one of Vincent’s famous theatricals?
Also, the idea of using ‘vice’ for charity is paradoxical, isn’t it? Charities are meant to spread good to humanity. Vincent plans to spread goodness to humanity by using funds from the vice industry.
So, again, another one of Vincent’s theatrical gone bad.
All I know, Vincent is a front man for UMNO. The gambling industry is owned by UMNO and money from the gambling industry flows like a river to PWTC. Vincent is just a face used to hide the real owners -- that is UMNO.
READ MORE HERE (http://www.malaysiawaves.com/2010/06/rm525-million-is-pittance-compared-to.html)
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RM525m donation is chickenfeed......compared to the enormous potential market for sports betting
1. The sports betting market is worth anywhere between RM7 billion to RM20 billion annually. So what is a one-off RM525 million donation compared to that?
2. How much is Robin Tan’s 30 per cent share in Ascot now worth? Will he sell it to the public and donate the proceeds to charity too?
3. Ascot is likely to be another cash cow for Berjaya Corporation. Even after the sale of his 70 per cent interest in Ascot, Vincent Tan holds a 25 per cent direct interest and a 28 per cent deemed interest in Berjaya Corporation, according to Berjaya Corp’s 2009 Annual Report.
4. Vincent and Robin Tan are among the five trustees of the Better Malaysia Foundation.
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According to Vincent Tan, Ascot Sports is projected to make RM125 million in profits per year. The Price Earnings Ratio for gaming counters on the Bursa Malaysia or Malaysian Stock Exchange ranges from 15 to 20 times. This means the RM125 million profits (calculated at RM125 million x 15) would come to a market capitalisation or market worth of RM1.875 billion.
Now, if a factor of 20 were used (RM125 million x 20), then it would come to RM2.5 billion instead. This would mean that the argument in the two articles above, in that RM525 million is pittance, would be credible.
And since Vincent Tan and his family own more than 50% of Berjaya, the gains in their net worth is between RM937.5 million to RM1.25 billion.
That is the real scenario.
The latest edition of Malaysian Business quotes Berjaya as saying that they expect Ascot’s profit from the new gaming licence to be higher than the RM125 million that was declared. The actual profit, says Berjaya, would be between RM320 million to RM385 million.
Okay, let us average it at RM350 million per year. Based on a PE Ratio of 15, this would come to RM5.25 billion, and on a PE Ratio of 20 it would come to RM7 billion.
So, again, what is RM525 million? Pittance. What Berjaya is getting in return is many, many more times that. So the ‘charity’ gesture of RM525 million does not impress me one bit. After all, you need to place a prawn on the hook to catch a big fish, do you not? So, don’t look at the prawn on the hook, which Vincent Tan would like us to focus on. Look at the big fish, which this prawn is going to catch, which Vincent Tan would rather we not see.
Furthermore, Vincent Tan’s asset worth has been listed as in excess of RM5 billion. Against the backdrop of an asset base of more than RM5 billion, can you now see that RM525 million is a small percentage of what he is worth? And add the billions he is now going to make on his gaming licence -- hey, even I would ‘donate’ half a billion ringgit if that ‘donation’ can win me a licence that multiplies this multi-fold.
And where would I get that half a billion ringgit? Simple, any towkay would gladly ‘upfront’ me half a billion ringgit if what I will gain from that gaming licence would run into billions. And are not towkays normally behind the Malay business tycoons anyway?
Look at Vincent Tan’s statement again. "By legalising sports betting... the government could earn annual revenue of up to RM3 billion ringgit through taxes."
Okay, if the taxes alone come to RM3 billion per year, how much do you think the profits are going to be? Do your own arithmetic and work it out. I am sure it would be easy enough for most of you. Just multiply that by four. Would that not come to more than RM1 billion per month?
Well, over to you, Vincent -- your turn to reply. And be careful how you reply. We are not as stupid as we look.
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