News

New Body Tackles Wagering Issues

23rd Dec 2009

A newly formed alliance of racing industry participants has stepped up the fight for a better deal from wagering operators with detailed submissions to the Productivity Commission enquiry in Gambling.

The National Horse Racing Alliance (NHRA), representing a large number of owners, trainers, breeders, agents and organisations, has argued that future investment and employment in the industry was largely dependent on wagering operators paying an appropriate product fee based on betting turnover rather than gross profit. In both its oral and written submissions to the Commission, NHRA highlighted the need for certainty based on a fair return to those trainers, owners, jockeys, strappers, farriers, transport drivers and numerous others who produce the racing product.

The NHRA informed the Commission that a levy based on wagering operators’ gross profit was filled with uncertainty and exposed the future of industry participants to unacceptable risk, with declines in employment and investment in the Racing Industry as a probable outcome.

Appearing on behalf of NHRA at the Commission’s public hearing in Canberra, Martin Einfeld QC said that many jobs and livelihoods in the industry were at stake.

“No consideration is given in the Draft Report to the prospect of unemployment should the search for greater competition between corporate bookmakers ultimately constrain rather than expand the industry’s scope. It is not reasonable or practicable to discuss the racing industry merely from the perspective of those who wager on its events” he said.

“The Commission has not recognised that a contracting industry will deliver the opposite outcome to punters than that which is envisaged. Reduction in horse numbers may produce smaller fields (poor betting mediums), lesser returns to punters and owners and lower quality racing, as horses migrate to jurisdictions with higher prize money such as in Asia” Mr Einfield said.

In its written response to the draft report, NHRA rejected the Commission’s statement that “if punters prefer better odds…then a leaner industry that delivers this is preferable to a larger industry that does not” terming it as a recipe for job losses and condemning racing to a lower standing in the entertainment sector.

The NHRA challenged the Commission’s assumption that racing participants were the servants of the gambling industry rather than being a fully fledged industry in their own right. NHRA rejected the Commission’s claim that the Australian Racing Industry was “not a large scale industry” and existed only as an adjunct to the gambling industry.

The NHRA submitted that racing needed the investment of owners, breeders, and other participants, as well as punters to put on a world class show that, in turn, generated wagering turnover. Punters are a vital part of the racing cycle, but they can only participate if the other participants invest the hundreds of millions of dollars required each year, often without certainty of any return.

“Without encouragement of the owners, breeders, trainers and other participants, there is no industry, there is no revenue generated for government. In short, wagering operators must pay a proper fee for their access to the racing product such as will support the industry on which they operate” NHRA told the Commission.

The NHRA consists or a broad range of racing participants including owners, trainers, breeders, bloodstock agents and their organisations. It has been formed to give the industry participants a national voice and influence on issues affecting their very livelihoods. Its immediate task is to advocate the need for an appropriate levy on the turnover of wagering operators, rather than a fee based upon Gross profit, if racing is to survive and grow in the future.

The inaugural members of the NHRA include TROA, NSWTA, TBA, Inglis, Magic Millions, Federation of Bloodstock Agents Australia and Randwick Equine Centre with the other state-based and national bodies anticipated to join shortly.

For further information or to obtain a copy of the NHRA submission to the Productivity Commission, please contact:

Richard Freedman (NHRA Secretariat) Email: mail@nationalhorseracingalliance.com.au