More than 40 000 jobs on the line, says Phumelela

DURBAN – Phumelela Gaming and Leisure fell more than 20percent on the JSE yesterday after the country’s largest horse-racing operator warned that the lockdown was a threat to its business, with more than 40000 jobs on the line.

The group said it planned to resume its operations next month, as it had not been able to stage races since the beginning of the lockdown last month.

Phumelela said its revenue had remained stagnant as a result.

It said independent studies calculated that some 40000 jobs were dependent on the horse-racing industry and could be affected if the lockdown continued beyond April.

“If racing is not given authority to resume in early May, together with the opening of betting shops, it is likely that a rationalisation of the entire horse-racing industry and associated value chain in South Africa will occur with consequent significant loss of jobs and reduced tax collections,” Phumelela said.