Western Australia is the only state in Australia not to have privatised its tote. Racing and Wagering Western Australia (RWWA) runs all three codes of racing, plus the retail exclusive wagering license with WA Tab – branded as Tab Touch.
(You may have seen the ads with the bloke riding a rather large horse.)
RWWA recently announced a major funding upgrade and exclusively for The Roar we have been able interview David Hunter, Manager Thoroughbred Racing.
The Roar: For thoroughbreds you have separately increased G1 feature races by $850K and also an extra $5M into returns – although not all prize money. Please explain further.
David Hunter: Our first announcement was around strengthening the major races at Ascot during the Summer Carnival. One of the biggest challenges facing thoroughbred racing in Western Australia, and I believe nationally, is the relevance on racing within the community. At RWWA, our strategy to address this starts at the elite level.
Your readers will be aware that the Inter Dominion returns home to Perth for the next three years – this is the marquee event of harness racing in Australasia and I have no doubt will drive a renewed interest in harness racing in this state.
For Western Australian thoroughbred racing, it is logical that we invest in the three Group 1 races that we have retained, with the aim of attracting the best horses from across the nation to Perth. Our two Group 1 race days at Ascot will be heavily marketed to get patrons back to the track.
We are excited to also be in a position to announce $5 million in additional distribution to our stakeholders in 2015-16. While $750,000 will go to race clubs, $4.25 million will go directly to our industry participants through a boost to stakes at all levels, further investment in our extremely popular Westspeed Incentive Scheme, increased jockey fees, and the introduction of a starters’ subsidy to trainers.
Can you take us through the logic of the $75 trainers subsidy, as I believe this is an Australian first innovation. Although might have to change language and figure re “Return to Owners” and comparison with other states.
Most trainers have a substantial investment in our industry and it is in the best interests of all stakeholders that a sustainable business model exists for this very important sector. We see trainers as our best opportunity to attract new wwners into thoroughbred racing.
From August 1, trainers can have a degree of confidence, knowing irrespective of the finishing position that every horse they present at a race meeting telecast on Sky Racing will return a minimum of $75 to their stable.
The subsidy is intended to provide support to all trainers, and only comes into effect if the trainer receives less than $75 in stakes commission on the race.
Owners remain the most important investors in our industry and while the introduction of this subsidy will put a further $1 million directly into trainers’ pockets, we are absolutely committed to increasing stakes levels to maximise returns to owners.
In a radio interview, CEO Richard Burt basically accepted that this prize money increase is really just a catch up with the eastern states to “maintain relevance”. Realistically, what impact, if any, will this have to number of owners or wagering?
While the predominant funding stream for racing is through the pari-mutuel totalisator licence in each state, there will be a correlation between the size of the state and our ability to generate revenue to support the industry.
Western Australia does not have the population to generate returns to the industry at the same levels seen in New South Wales and Victoria, so we will always in a way be playing ‘catch up’ on Saturday stakes levels. We all run eight races on a Saturday afternoon, however we don’t all have the same revenue base to fund this from.
However, I am confident that the stakes increases that our Stakeholders will see phased in from February 1, 2016, will have a material impact on the return our owners can expect by investing in our industry.
In respect to base stakes, I am yet to see a direct relationship between prize money levels and wagering.
How many owners do you have have/report. Once again the CEO said the ownership base was “fragile”. Do you have an ownership KPI for RWWA?
I concur with Richard’s comments on the ownership base – it is fragile at any time, but accentuated in the soft economy we are currently experiencing in Western Australia.
There are approximately 9000 distinct owners that raced a horse in the last twelve months, and we have a strategy to increase this number through not only increasing owners’ returns through distribution, but an aggressive marketing campaign to raise the profile of horse ownership in the community.
A number of new marketing initiatives were alluded to. What actual marketing improvements will you implement?
We have a great team working in this space, led by Charlotte Mills. The initial focus has been on recognising our existing ownership base through our ‘Owners Only’ programme and are now moving to roll out an advertising campaign through the traditional television, radio and print mediums, together with digital platforms.
RWWA controls the racing and the WA tote. This is unique in Australia and lots of people, including myself, think it was a big mistake and/or missed opportunity for racing not to have either owned or part owned its major wagering partner and industry funding source. What’s going to happen in Western Australia if the government is pressured into selling the WA tote?
The future ownership of the Western Australian TAB licence is of course a matter for the State Government. RWWA will support our stakeholders through the consultation process with government to ensure the thousands of people in our community that rely on racing for their livelihood have a sustainable funding mechanism into the future.
Your 330 retail agents are responsible for 70 per cent of turnover. They must be under pressure not only from corporate bookmakers but also the natural migration to digital channels of wagering?
The wagering landscape has certainly changed in the 15 years that I have been involved in racing administration – what was virtually a pari-mutuel monopoly off course when I started has migrated to a highly competitive environment. Our business, like many others, is very well placed to meet that challenge.
Any insights from the Australian Racing Conference impact of the new Racing Australia for racing in WA?
The concept of an Australian Racing Conference is a great one, but despite the recent formation of Racing Australia, it’s very obvious to me that we are still a long way off a true national governance model for thoroughbred racing.
Update: Since this interview, RWWA has announced announced the engagement of Mr John Schreck, former Chief Steward in NSW and Hong Kong, as part of its integrity strategic plan development. Schreck will be focusing on all aspects of thoroughbred integrity operations.
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