Greyville racecourse. Picture: Gerhard Duraan/Gallo Images
The rescue of KwaZulu-Natal horse racing is a long stride closer to the finish following the Competition Tribunal’s go-ahead for a R500-million takeover of racing operator Gold Circle by gambling firm Hollywoodbets and billionaire entrepreneur Greg Bortz.
After a storied history of more than a century, racing in the province faced oblivion due to massive debts – with the pandemic lockdown and an attempted tax-grab by government compounding the woes.
KZN has just staged a successful traditional winter season, with the iconic Durban July and other famous race meetings drawing huge crowds, record betting turnovers and even global television audiences.
Nonetheless, Gold Circle made a loss of R80-million in the 2023 financial year and was expected to lose R100-million in this term.
In early 2023, Bortz, the driving force behind the celebrated rescue and revamp of Western Cape racing, stepped in with a loan offer of R100-million. His partner in the Cape Town project, Hollywood Sportsbook Holdings, promised another R400-million.
The Gold Circle board readily accepted the offer – with its only alternative plan being a raid on ring-fenced development funds, which would only have lasted for about six months.
Now, the most significant outstanding step is approval of the KZN Economic Regulatory Authority (KZNERA), a process that a press release this week said “could take some time”.
Hollywoodbets spokesman Basil Thomas said the Competition Tribunal approval allows Hollywoodbets and Bortz, chairman designate of Gold Circle, to get involved in management and strategic decision-making in the meantime.
Hollywoodbets will invest funds at its own risk to ensure the continuity of racing at Greyville and Scottsville racecourses, in Durban and Pietermaritzburg respectively.
Worries that the provincial government might gum up the works could be overly pessimistic. A new unity administration following the recent national elections shows signs of re-energizing economic life in KZN.
In remarkable serendipity, Bortz, who grew up on Durban’s Berea, a stone’s throw from Greyville, won the 2024 July with his co-owned horse Oriental Charm.
