The 'Babe’ and ‘Big Bill’ Waterhouse battled for punting supremacy in 1967 - one man would eventually lose big

Felipe Ysmael who preferred to be known as as "The Babe," had amassed significant wealth through his steel business and political connections in the Philippines. As a result, he commanded widespread respect and influence. Ysmael liked the projection of gentility, youth and import that the moniker The Babe exuded. The moniker bestowed upon him by the press, "The Filipino Fireball," aptly encapsulated the dynamic and captivating style that propelled him into the public consciousness. Ysmael hit the Australian punting scene from nowhere, shining bright as a giant gambling force before quickly burning up. However, in contrast to the majority of high-stakes gamblers, it was not a lack of financial resources that resulted in his downfall, or departure from the game. Ultimately, it was his inclination towards secrecy and the stringent regulations imposed by the racing authorities that led to the demise of The Fireball.

The Babe was a Filipino millionaire who had been educated in California, seen the world and who got his thrills by betting on horses. In order to maintain his anonymity and proximity, The Babe established a stronghold in the Melbourne area, acquiring a team of high-quality thoroughbreds, and employing commission agents and trainers. He meticulously laid the groundwork for his racing and gambling operations, taking great care to conceal his identity on all fronts.

In 1967, Ysmael achieved notoriety within the racing industry for his deeds. He engaged in substantial wagering with multiple bookmakers during the Doncaster-Sydney Cup events and encountered competition from Jack Waterhouse, a well-known figure in the bookmaking industry. However, Jack lacked the fortitude to handle the big bets, unlike his brother Bill, a master bookie. Jack provided Bill with information regarding Ysmael and his associates, which subsequently initiated the commencement of what is still considered to be the most significant personal wagering battle ever seen within the Australian turf industry. It was an epic contest between two formidable pugilists, a conflict that continues to captivate and evoke exhilaration in those who witnessed it firsthand. It was a competitive endeavour that elevated both individuals to exceptional levels of gambling achievement, and a fierce contest that profoundly impacted the core of the racing industry.

The first shot was fired when Waterhouse travelled down to Melbourne. The Babe’s right hand man Frank Ford placed some large wagers and was treated with contempt by Waterhouse, ignoring the large sums by leaving his prices untouched. Waterhouse had reeled in Ysmael - the Filipino egotistically stung by the tactic wanted some insight. Waterhouse was soon invited to Ysmael’s estate, a meeting to lay down the ground rules of the series of title fights that lay ahead. The Babe proposed a wager as an agreeable means of occupying the remainder of the afternoon. Waterhouse, reluctantly agreed. After six races The Babe had lost $550,000. He then asked for $200,000 at 7/2 on a runner and the horse duly saluted. Waterhouse had come out on top the in the first exchange.

As the betting escalated the newspapers became increasingly enthralled. The Babe then tried to hide his betting behind the façade of an Asian betting syndicate. The rules of exchange had changed, The Babe was now wanting to bet under pseudonyms and over the telephone, however the size of the bets was causing such publicity that Bill agreed not record the actual amount in the ledger.

One of Ysmael's notable shortcomings was his suspicious nature. It frequently resulted in financial losses and, more importantly, damage to his reputation. In 1967, Ysmael had wagered heavily on the odds-on pop in the Derby into the Bart Cummings-trained, Red Handed. When his good thing lost the Derby, he not only lost his cash but had cast his hand for the Melbourne Cup. Waterhouse had The Babe in a quandary, and he knew it. He lifted his arm and wound out Red Handed, from 4/1 to 9/2, removing it from the joint favoritism it had earned with General Command. Ysmael had $250,000 on General Command, believing Waterhouse had gotten to Red Handed and the Kiwi couldn't win. The mind games had worked. Red Handed won the 1967 Melbourne Cup. While his losses hurt him financially, it was his victories that ruined him long term. Plunges on his own horses, such as that on debutant Red Diver, led to many, including the racing powermen, to think he was working hot.

Ego had started working against him, and in the end it would be his downfall. His nefarious betting exploits had bought out the power brokers and forced them to put the clamps on his great vice. Ysmael had made bets to win over $1,000,000 and it made those in power nervous. The VRC eventually stitched him up over an Ysmael horse called Follow Me, who ran last on debut. Ysmael was disqualified and was so disillusioned that he sold-up his operation and left the state.

It was a victory to Waterhouse but it was not a knockout victory. He had not destroyed The Babe financially like he had succeeded with many other heavy-hitting punters.

Ysmael never bet in those amounts, at least in the public forum ever again. He took to receiving posts from his political allies in the Philippines and attempted to retire from the public eye. Unfortunately, his ego and sensitivity led to his downfall. His failure to engage in the necessary political maneuvering resulted in a chaotic situation when the moralists became involved. Regardless of the finale, there is little doubt that The Babe bet as much as anybody who has graced the Australian turf and stands alongside Kerry Packer as a giant of the punt. He captivated Australian racing enthusiasts of the era with his substantial wagers and the titanic approach he took to his betting activities. He was as common as all amateurs with his ego driven gambling but he was a rarity among the heavy hitters – he walked away intact. The "Filipino Fireball," he certainly was. For a short time, at least.