Andrew Ramsden, Chairman of the Australian Racing Board, and Guy Sargent, Chairman of New Zealand Thoroughbred Racing, announced to the biennial Australasian Conference of Racing Ministers in Auckland, New Zealand, their opposition to betting exchanges operating on Australia and New Zealand racing.
During the conference, Access Economics delivered the results of an independent financial analysis on the implications of betting exchanges for State Governments and the racing industry.
If one or more betting exchanges were to be issued an Australian licence, racing industry revenues would fall by as much as A$80 million by 2007/08, while State taxes from wagering would fall by something in the range of A$30-A$40 million a year.
Furthermore, a loss of confidence in the integrity of racing of only 10% caused by scandals such as those witnessed in the United Kingdom, would see a loss of A$150 million in revenues, equivalent to almost one-third of Australian thoroughbred racing’s total funding.
“The clear conclusion that must be drawn from the work of Access Economics is that licensing BEs to operate in Australia would be a disastrous policy option for both Governments and the racing industry,” said Ramsden.
“A similar fall in the percentage amount of our funding would see over 30 of New Zealand’s 70 race clubs wiped out. This would inevitably result in job losses and the erosion of a major source of revenue for New Zealand,” commented Sargent, which is also a member of the Executive Council of the Asian Racing Federation
“Being a member of the ARF Council makes me fully aware of the strength and depth of the international opposition to exchanges,” he added.
Calculators
