Mark Read became Australia’s largest bookmaker over his career, before selling his corporate bookmaker, IASBet, to Paddy Power back in 2009.
Mark Read was one of Australia’s foremost bookmakers, a legend of the sport of racing, and of wagering in general across his 35-year career. To this day, Read remains involved, and offers a personal proprietary trade business, discussed in more detail later.
Read, named as the ‘Mouth from the South’ by veteran racing journalist Max Presnell, saw wagering move from a track-only basis, to state-based via telephones, to national through online, and now global, with UK bookmakers dominating the local scene.
Read is proud of constantly reinventing himself, and in a two-hour long wide-ranging interview with The Roar, regaled us numerous war stories and innovation concepts.
The man’s passion for racing is unparalleled, and it’s hard to explain just how strongly the fire burns in him around issues he sees as key – both a study of history, and innovation and reinvention to stay relevant.
Read was just the third bookmaker in the world to transact online, and moved to Darwin in 1996 to become licensed to offer bookmaking services on a 24/7 basis, the first corporate bookmaker in Australia.
Read innovated at every level. He was the first to syndicate racehorses in Australia back in 1979 – freely admitting he stole this idea from American influences who were ahead of the game at the time.
He broke a number of turnover records, including being the first bookmaker in Australia to hold $1 million on the four day Melbourne Cup Carnival, and also being the first bookmaker in Australia to turn over more than $1 million per day.
He was the first to pay $100,000 for a racehorse when he was a “young fool”, a horse his mother, Mabel Read – then the most prolific punter in the country – told him was lame soon after he’d purchased it. He later learned this was true after a phone call from Bart Cummings’ brother, Pat.
He’s done everything in racing that you would want to achieve, and still takes a keen interest in the sport both locally and in Hong Kong, where he offers a hedge fund service, which he sees as the future of wagering.
“The rest of the world have moved to Hong Kong. 20 years ago, we were all telling the Asian authorities they need need to clear up racing. The culture was all wrong.
“But all business and culture evolve, and since corruption and bribery were taken seriously, Hong Kong is now the leading jurisdiction in the world for integrity.
“Hong Kong is truly the only global market, and the Jockey Club has further worked to secure soccer punting, the global leader in sports wagering.”
Reform in Australian racing
Read says Australian racing must look to reform – pointing out that it’s been the same as it was 50 years ago.
Read’s suggestion is for a ‘Premier League’ style of racing, with clear divisions, and promotion and relegation for horses who perform well or poorly.
For example, ‘A-Class’ races would feature the top horses at city meets, while provincial and country races have separate divisions. This would provide more competition, see more clashes between heavyweights and provide more genuine handicaps at the top and bottom end of a Class.
Read calls Victoria racing the most progressive jurisdiction and recalls Ron Casey telling him in the 1980s that “the picture is the product” – noting “Victoria is 100% correct in what they’re trying to achieve with media rights”.
Read feels the punter is hard done by in this day and age, thanks to ‘greedy, opportunistic’ UK corporates that has seen wagering in Australia stagnate.
Read noted that in his day he’d take on big punters. “If I saw someone had an edge, I’d bet with them as well. I had access to nearly every bookmaker in the country. I could get set with any of them when I needed.”
He told a famous story of backing Saintly in the Melbourne Cup.
“I thought [Saintly] was a good thing in the Melbourne Cup,” Read said.
“I backed him myself and Kerry Packer rang up and said ‘I want a million on Saintly’ five minutes before the race.
“I put it straight on the NSW tote, via the Northern Territory, they’d just arranged an agreement to co-mingle.”
These days, Read says winning punters have their accounts closed or limited noting the very Australian ideal of a ‘fair go’ is being “denied”.
“Is anyone looking out for the punter now? Racing just isn’t looking after their own.”
Are the right people in charge?
Read is a student of history, fond of pointing out that “history is the window to the future” – something that racing forgets. Every boom has its bust – and while Read says breeders are now in charge, things won’t always be this way.
“Sir Eugene Gorman, one of the most influential racing administrators, famously said that when breeders got on the board of racing jurisdictions, it will be the end of racing.”
“The problem is the modern breeder is not a punter. Instead, they seek taxation relief. They seek exorbitant fees. They’re not in it to support punters and owners.”
Read has further questioned how breeders are managing to handle modern breeding requirements, where up to three mares per day are serviced by stallions, across a 90-day breeding season.
While the rules of breeding are strict in terms of prohibiting artificial insemination, Read says he finds it hard to believe that older stallions are able to perform consistently.
“Are these stallions, which are priced at exorbitant fees, tested for drugs? Should restrictions be placed on performance enhancers in the barn?,” he asked.
“I don’t see how it’s possible and I don’t think anyone is asking the right questions. Physiology tells you that as you get older everything slows down. While the stallion is still required as a physical presence and performance – I don’t believe it!”
Advice for punters – and Mark Read’s hedge fund product
When asked for suggestions and advice for punters in this day and age, Read was clear on the only real advice needed: do the work. The other suggestion was to migrate to Hong Kong racing.
“Hong Kong is the pinnacle of the racing world. It’s the benchmark for all other racing nations. We bet there and allow others to bet with us via our hedge fund. Our hedge fund has a minimum $50,000 buy-in for a single season.
“A season lasts 10-12 weeks. We had five seasons last year, with four winning and one losing season, returning 80% on our winning seasons and a 20% loss on the last season of the year.
“We think we can return 50% on investment and that’s what we’ll be aiming for as we move ahead. The great thing is our clients receive the tips for the race two seconds before the jump, meaning they can cheer on the selections we have made, via our analysis.”
Bondy
Guest
Bookmaking in modern times doesn't have the aura it use to have in the 50's & 70's ,today's bookmaker is about getting into the pocket of kids and Mum's and Dad's and then glorying themselves through commercials ...
Bondy
Guest
I remember that he was in deep ^hi^ ...
gripe
Roar Rookie
The relationship between Manuel's and Read ended acrimoniously. Manuel's are still punting, but not on same scale as they did formerly.
Tristan Rayner
Editor
Interesting - details here: http://www.smh.com.au/articles/2003/10/17/1066364487727.html Not sure if the bank ever got it back - that's the real question.
gripe
Roar Rookie
Interesting article - Read has clearly evolved over time. Credit to him for this. My understanding is Read made a lot out of a bank manager who was embezzling funds from CBA back in the 90's. Sent him a carton of Grange to the bank he worked at, so was hard for him to protest he didn't know where funds were coming from. Can anyone confirm this?
kv joef
Roar Guru
Most excellent idea James.
leo
Guest
Racing industry as a whole depends on every aspect to survive and grow.however like the spokes on a bicycle every aspect is at breaking point.The moment 1 spoke breaks it adds strain to the others but ultimately a concertina effect happens.Add in the influx of overseas companies,add in a non-competitive or rather a wagering company that simply 'goes through the motions' to satisfy not bettors but shareholders. As for Govt intervention in simple,there is No one within the Australian govt that has a deep seeded knowledge or understanding so nothing will happen.Until they start to notice a drop in Tax revenues only then will a Govt figure ask questions. The industry through picture looks bright but that is illusionary. The truth is,i believe,that eventually the well will dry up, The strain on breeders to sell their product is constant and can only happen if prospective buyers can see a profit. Buyers can only see prospective profits on their Investments if race prize monies increase. Who in the Industry can guarantee that?? The betting agencies that paid huge sums to get a piece of the bettors monies is a normal business practice but unlike a consumable(food) it is not a necessity but it is a necessity for the overseas companies to survive. HK works for various reasons and comparing it to Australia. China has 1,3 billion people,we have 23 million people. They are a non-profit organization. There is No breeding industry involved. The option for bettors is restricted to 3 times per 7 days(Racing/soccer/mark6 lotto). In Australia wagering companies are still brainstorming on how to fill the empty window,which comprises the hours of 1.30am till 7.00am so that they can entice anyone to 24 hour,7 day betting multiply in the other 2 codes(harness,greyhounds)Market saturation. The option of bettors in Australia then goes back to the availability of Betting agencies to basically...get your money.and if that dry's up then sustainability is impossible. But come Melbourne cup ....no one will notice anything.finally on that note do we REALLY accept a situation where there are 24 runners and the Wagering companies pay only 1st,2nd,3rd??.As M.Read said 50 years on nothing changes.
Haradasun
Roar Rookie
I didn't read it as once you are in div 2 you are precluded from rising in the ranks during a season. I read it as there being some end game to the bm 75 division for example. Melb has the winter sprint series etc. A collection of linked races leading to an overall title. The greyhounds have racing leading up to finals as well and I don't really follow them, but surely that would create some interest as well as opposed to endless winter wet track donkeys just going round and round to fill up sky space. So you might have instead of BM 75 a div 3 championships over the spring with several lead up races to a DIV 3 championship title. You qualify by meeting the hcp criteria. If you win the first race by 6 lenghts you will move on to bigger and better things, but otherwise you would be [steadily grinding] towards qualification to the big final BM75 champion stakes.
kv joef
Roar Guru
I don't quite understand what is being suggested above ... Our current BM system has at least 5 slots for each division. It is as good as it gets. For instance if you have a BM65 horse and that seems to be his limit, you then have the opportunity to race him im City BM65/70 ... Provincial BM65/70 ... country1 BM65/Open ... country2 Open (usually NON-TAB or out on the plains somewhere) ... Picnics ... each of these divisions have a graduated prizemoney , this also dictates class of the racing company. the sideways movement allows horses of limited ability plenty of opportunity if their TRAINERS had half a clue. As adam already pointed out it allows a 'good horse' to emerge from anywhere. Oz racing averages 10.5 starters/race with little variation over the last decade or two. According to research optimum betting occurs in fields of 12/14 runners (welcome to HK). the other problem is how many horses would qualify for the elite group ... maybe a 100 or if we drop the BM to 95 ... 500 or so horses australia-wide. not a whole lot of competition there and don't our best horses already compete against each other in black-type racing. HK and Singapore racing is a closed shop and once you get away from the HKCL2 and above horses (third highest of 6) you are talking about provincial down to country2 class. If you want to bet in big fields bet at the provincials. Bob Charley ex legal-eagle and AJC chairman did very well in the hinterland. Me, i love small fields ... jam for the sideboard. Personally, i think for the average punter the racing in Sydney is fair and predictable as can be expected. if you have above all discipline, you should do OK. Bit busy now but enjoying the thread and article.
Haradasun
Guest
Why is that a negative adam? The whole bm system is so archaic. It could do with an overhaul to modernisee it and make is easier for the casual race goer to comprehend surely?
Adam Page
Roar Guru
Outstanding read Tristan. Only negative I'd have to say is the idea of divisions. Racing is all about chasing the big time, the big money and beating the big boys. City racing does need the country gallopers eg Shiraz, Our Boy Malachi
Tristan Rayner
Editor
My understanding is that the Ferncourt relationship ended some time ago.
Tristan Rayner
Editor
Thanks cowcorner - it's something very different indeed. Mark, Alex and the team will be sure to guide you through it if you need!
cowcorner
Roar Pro
Tristan--very good interview. Read is definitely an innovator. Just not sure about investing in a hedge fund run by a bookie! Bookies are not renowned for making their clients profit!
kv joef
Roar Guru
Concerning his hedge fund, Mark didn't mention in the article whether he was still having fun with the Manuel Brothers? Lot of handy teams in HK. Good Luck
Haradasun
Roar Rookie
Great read agree an excellent article. I have to agree that Breeding is taking away from the product. Its a real annoyance of mine seeing top colts retired at 3. Deadset. Lohnro raced until he was 6. Hopefully supply and demand fundamentals will see this balance out over time. Further, it would create a lot more interest having clear spring/autumn pathways for A grade and B grade horses. Its nice to have racing building up to 'finals'. As a racing enthusiast you know pretty much if a horse is heading to the cox plate or not, but for a casual race goer it would definitely help marketing knowing lead up races and which ones apply to which horses. Overall agree with Mark's sentiments that the current system is wildly out of date and even their recent scheduling changes are still debatable whether they make any sense.
Geoff Parkes
Expert
Thanks Tristan, excellent article.
kv joef
Roar Guru
Putting in-running sectionals live on screen may very well start a frenzy of in-the-running betting Will :) ? Sectionals on screen during a race is one reason why U.S. racing's in-the-running betting on Betfair and elsewhere hasn't got traction. But as you have outlined there is no reason whatsoever they can't do it. Maybe a chance in NSW as it seems VIC racing is being dictated to by the corporates.
kv joef
Roar Guru
he had a good run with Henry Davis but i don't think he got barred from betting for his successes? Getting Closer was well supported in the Doomben 10000. High Signal was another there was a few. had bookmakers to bet against then.
Justin Cinque
Expert
Pretty sure it paid off a newly taken out mortgage on a elusive Sydney mansion for Read.