Turnover on free bets and generosities from corporate bookmakers have reached new heights as Racing Victoria turnover surpassed $9 billion for the first time in 2021-22.
But new chief executive Andrew Jones has warned that the “strong” numbers are already showing signs of slowing down this financial year, and may not be sustainable into the future.
Racing Victoria chief executive Andrew Jones.Credit:Daniel Munoz
At the end of 2018-19, turnover on Victorian racing passed $7 billion for the first time, and two years later, it skyrocketed to $8.7 billion thanks to punters being locked at home under COVID-19 restrictions.
But instead of retracting, the figures grew again in 2021-22, rising five per cent to $9.16 billion to mark an incredible 30 per cent growth in four years.
Interestingly, the growth in free bets and generosities handed out by bookmakers have been even more rapid. Four years ago, $110 million in free bets were turned over by punters on Victorian racing. Last financial year, those generosities reached a record $437.7 million, making up nearly five per cent of all turnover.
“A new turnover record was set in FY22 courtesy of strong customer engagement and favourable market
conditions as total wagering turnover rose by 5.3 per cent to reach $9.16 billion,” Racing Victoria said in its annual report.
“COVID lockdowns through the first half of the year provided the platform for ongoing growth, whilst Wagering Service Providers continued to support Victorian thoroughbred racing as the hero product in their generosity campaigns.”
But despite the record wagering levels, wagering income declined by 0.5 per cent last financial year due to Racing Victoria’s joint venture deal with the VicTAB, which was impacted by COVID lockdowns and retail venue closures.
Racing Victoria did offset those losses, however, thanks to a $38.8 million uplift in receipts from the Point of Consumption Tax (PoCT), which increased from 1.5 per cent to 3.5 per cent from July 1, 2021, ensuring Racing Victoria recorded a 4.6 per cent increase in total revenue.
The final result on the balance sheet was a surplus of $13.9 million.
However, Jones is cautious.
“With COVID behind us, turnover is moderating in the first half of FY23,” Jones said.
“We are returning to a more normal operating environment and facing macro-economic headwinds including increasing interest rates and inflation.
“Looking to FY23 and beyond, our focus will be industry sustainability, prudent financial management and the next phase of growth for Victorian racing.”
Aside from group 1 meetings, which enjoyed 14.8 per cent growth in turnover on last year, Racing Victoria also saw a spike in wagering on metropolitan twilight meetings and feature country race days.
Group 1 racing and mid-week metropolitan meetings enjoyed a sharp rise in wagering turnover.Credit:Getty Images
“Midweek twilight meetings were a stand-out performer in FY22, recording 16.6 per cent growth as the timeslot has established itself with consumers after first being introduced in 2018,” the report said.
“Metro Saturday meetings grew by 9.3 per cent as the major engagement opportunity for audiences, whilst growth in country meetings, which are predominantly held mid-week, slowed to 3.0 per cent, in part due to the return of consumers to pre-COVID routines.”
