The financial rocket fuel provided by poker machine revenue may have gone, but the Victorian racing industry remains the national leader. Amazing what a supportive state government can do for racing.
Last week the southern Minister for Racing, Denis Napthine, lobbed $6.8 million into the Victorian Owners and Breeders Incentive Scheme. VOBIS Gold is all about pumping up returns to owners.
The post-poker machine agreement between Victorian racing and its government is set to provide prizemoney increases of up to 20 per cent next year. Add the gold bonus, for horses bred in Victoria, and city prizemoney down south may reach $125,000.
Maiden races with $40,000 to dish out will ensure Victoria is targeted by anyone with a racehorse. And, if you can believe it, Napthine has dived into consolidated revenue. Unclaimed dividends provides the funding. Try tapping that well in NSW.
Treasury in this state takes, it does not give. Not a concern for Napthine, he sold the deal on ''jobs, jobs, jobs''. It is hoped racing heavies down south sowed that seed with the minister. Pumped-up prizemoney courtesy of a breeding bonus means more employment in stables, stud farms and associated professions. More money means more horses heading to Victoria.
In NSW, prizemoney increases are braced to the upcoming High Court decision in relation to Racing NSW charging corporate betting houses 1.5 per cent on turnover. The corporates want to pay on gross revenue, which is how they pay in Victoria.
Should the High Court find in favour of the corporates, racing in this state will hit rock bottom. Even if it goes the way of the racing regulator, NSW racing will only be playing catch up. It may end up where it should have been anyway.
While Racing Victoria has implemented any number of strategic plans resulting in consolidation with a bent on upgrading race club infrastructure, NSW has fiddled.
Any number of race clubs in this state are broke. Many are being
propped up by Racing NSW. It may well be dipping into corporate betting house fees already collected to ensure clubs can pay prizemoney.
The Australian Turf Club admits it has a $6 million budget shortfall. Formed by the merger of the Australian Jockey Club and Sydney Turf Club earlier this year, the ATC is in trouble. Sure, it has $150 million to spend on a new grandstand at Randwick, but what's happening on that front? No racing at Randwick while the old buildings are being gutted. The ATC expects to sign up a builder for the project this week. Many remain worried.
Of course, the $150 million came via the government, with racing relinquishing any claim on the TAB's cartoon racing machines which are on their way to a venue near you. Maybe the bird in the hand is better than two in the bush, but once again racing in these parts has sold out.
It could have owned the TAB, could have owned its own racing channel. It could have entertained the corporates, but it sent them to the territories, where governments earn plenty. Think of the GST receipts on betting which have grown to $5 billion in the Northern Territory. Victorian race clubs are now buying licensed premises to cash in on poker machine revenue, looking outside racing for revenue to plough back into the game. No club in these parts could afford to do the same.
And the merger of the AJC and STC was supposed to be huge and lucrative. So huge you've still got AJC signs inviting you to Randwick. Where is the ATC brand? The one they paid some consultancy mob handy money to confirm it was right.
Randwick-based trainers are paying more for stable rent then those at Rosehill, the stables at Rosehill being far superior. Canterbury racecourse is being allowed to deteriorate. Land is being sold off at Warwick Farm. The horses out there are now competing with a hardware store for space.
cyoung@fairfaxmedia.com.au
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