Country racing clubs at risk from proposed gambling legislation

The financial stability of Australia's country race clubs, the very essence of thoroughbred racing, is under threat if gambling reforms extend beyond the current legislative proposals.

During a recent Senate inquiry in Canberra, Racing Victoria chief executive Aaron Morrison and acting Racing NSW chief executive Graeme Hinton passionately articulated the potential ramifications of stricter gambling advertising rules or more severe regulations.

A senior figure within the racing industry, who spoke on the condition of anonymity, expressed that the long-term survival of country racing is endangered by any further alterations to the gambling reform package.

"It's not the headline races that are going to be most affected, it's country racing,'' the source told Racing And Sports. "The cuts will start there because there's so many mouths to feed. There's 67 gallops tracks in Victoria. If a big chunk of wagering revenue is wiped out, some of those tracks will have to close."

"I heard (Racing Victoria chief executive Aaron) Morrison say something like 30 percent of turnover could be affected. There's no way all the country clubs can survive with that big a hole. I don't think those people in Canberra realise what the real effect of these decisions will be. Racing's a very big employer, not to mention a big part of many country towns."

Morrison addressed the Senate inquiry, stating that industry leaders were presenting a united front to showcase the "real face" of racing – comprising the people, jobs, careers, and communities connected to the sport.

"That means trainers, jockeys, stable staff, breeders, vets, farriers, float drivers, feed suppliers, club employees, volunteers, owners and the country towns across Australia that rely on and thrive from racing,'' Morrison explained. "Nationally, thoroughbred racing supports more than 100,000 FTE-equivalent jobs. Every day working Australians. The total number of people directly involved is many multiples of that considering owners, members, volunteers and participants."

"Racing is a big part of the cultural fabric of Australia, we're one of the oldest industries and we provide significant support to the communities in which our hundreds of mostly regional racecourses operate across the country. If reform overreaches, the impact to us will not be theoretical or abstract. It will be felt in livelihoods, careers, horses, clubs and communities across Australia."

Morrison clarified that when they "talk about a workable carve-out, we are asking the Committee to recognise racing's distinct role as an important national industry that supports jobs, livelihoods and regional communities across Australia."

Morrison stated that the racing industry does "support evidence-based harm minimisation, we support stronger protections for children and vulnerable people."

"We have already supported significant harm minimisation reforms, we've seen wagering advertising reduce substantially over the last few years – down over 41%,'' he said. "And reforms have had an impact on us, as far as industry revenues – we're down 24% in the last 3 years alone – which is a significant hit at a time when many parts of our industry are under pressure. So, our request again is simply that the recognised racing carve-out, that is part of the bill, is a practical, proportionate and workable solution, and that the bill already recognises that we've already seen some impacts across the industry."

Hinton also spoke at the Senate inquiry, highlighting that the legislation constitutes the most extensive gambling reforms in Australian history, yet cautioned about a "real risk of unintended consequences if we don't approach this carefully".

"Wagering represents just 10 percent of all gambling in Australia. This is an important fact. Placing a wager is a legal entertainment activity, enjoyed responsibly by millions of Australians in any given week,'' Hinton remarked. "What concerns us though is notwithstanding the protections afforded to racing in this bill, is that any further reduction in advertising or increased regulation could not only destroy the viability of our industry and takeaway livelihoods, it could result in increased harm."

"The question needs to be asked if the further changes that are proposed to this bill will actually benefit problem gamblers. Or are they being driven by a false narrative that all gambling causes harm, and a lack of focus on the unintended consequences that can follow. What we propose is proportionate responses, focusing on supporting those in need."

Hinton pointed out that the recent wagering regulations introduced since the gambling reform process began have "unsurprisingly corresponded with a period of significant revenue decline for our industry."

Hinton also emphasised that Australia's consumer protection measures are already among the world's most robust and will be further strengthened by this legislation. "However, the minute you compress a market through overregulation and high taxation, the black market will always find a way,'' he stated. "We're seeing that every day with the tobacco excise levy disaster which has shown what happens when regulations and cost settings push consumers to illegal markets. The result can generate far worse outcomes, not better ones."

Industry leaders are urging a careful consideration of the broader impacts of the proposed gambling legislation.

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