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Racing NSW bleeding the racing industry

22nd March, 2012
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Roar Guru
22nd March, 2012
48
1724 Reads

The High Court is expected to announce their ruling next Wednesday in the grudge match of the decade between Racing NSW and Australia’s corporate bookmakers, in the race field legislation dispute.

The national racing scene, and in particular the marketing of the major races, have never been in better shape since the corporate bookmakers have come to the fore in the last seven years.

The tens of millions that they have poured into developing the awareness in the racing industry has largely gone unnoticed by participants, and unappreciated by Racing NSW, who stand to collect a windfall if successful next week.

If the High Court does rule in favour of Racing NSW, the big short term loser will be the punter as they will have to accept a less competitive product, and the big long term loser will be the racing industry who will slowly lose market share to other gambling products and services.

The punter will suffer because bookmakers will be forced to reduce their margins to cover the extra costs to Racing NSW, who have demanded a payment based on turnover as opposed to gross profit. Many bookmakers will not be able to sustain this unjust cost and will either go broke or move to a tax haven off shore. The big players who stay will have to pass part of the new costs onto the consumer and thus offer a less attractive product, making it harder than ever for a punter to win.

The pin stripes at Racing NSW will party if they are successful, but they have displayed poor vision and demonstrated that they have no understanding for punting or punters, and importantly, how a bookmaking industry survives.

Punters are the life blood of the racing industry and without the punter dollar, nobody has a job. Racing NSW have caused the industry to bleed and long term punters will move away from the unattractive contracting margins and flock to sports betting, online casinos and iPhone games.

The racing industry needs the big marketing money from the corporate bookies and importantly the attractive product they offer that encourages and grows interest in horse racing. The corporate bookies should be charging Racing NSW a marketing fee for promoting their product.

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A ruling in favour of Racing NSW will encourage the re-birth of illegal bookies that will take away business from the legal bookies as the scoundrels pay no taxes to any sporting body.

Everybody agrees that a reasonable levy should be paid to the industry, but if it is not sustainable and the chosen strategy is not able to maintain the quality of today’s product, then the golden goose will be killed, and everyone is a loser.

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