Multimillion-dollar boost for racing stakes

Racing stakes are set for a $12 million annual boost with the promise of much more to come.

The New Zealand Racing Board (NZRB) shocked the chiefs of all three racing codes last night by informing them $24 million more dollars will be returned to the industry over the next two years to be used exclusively for stakes.

Starting August 1, thoroughbred racing will receive at extra $6.5 million annually than it did for this season, harness racing $3.55 million and the greyhound industry will have an extra $1.95 million to pay out.

NZRB chief executive John Allen is confident the much-needed boost was only the start.

“Our return to the codes will go from $136.2 million last year to $148.2 million this year,” Allen said.

“But I would like to think in the next three to five years that figure could go as high as $200 million.''

“The next two years are guaranteed at $12 million extra per year though and not only is that number sustainable, it is a just a starting point.”

Some of the extra money will come from the expected passing of race fields legislation, which will see corporate bookmakers overseas pay a percentage for betting on New Zealand racing product. That legislation is expected to become law before the general election.

Other key strategies being implemented by the NZRB will also have a huge role in increasing their bottom line and therefore their return to the industry, Mr Allen said.

He signals a new fixed odds betting platform, improved performance of the channels through which people can bet - particularly the internet - and an optimized racing calendar as ways New Zealand racing will profit.

“With the fixed odds platform improvements we have seen overseas agencies increase their turnovers through them and they will also give us the chance to win back large New Zealand-based customers we may have lost.

“And the optimization of the racing calendar, putting meetings and even specific races where they will best drive turnover is also crucial.

“We have done a lot of work and still have a lot more to do but I think a figure somewhere around $200 million being returned to the industry in five years is a realistic goal.”

The first $24 million is being targeted at stakes exclusively to raise confidence industry wide that racing is sustainable.

“This reflects recent steps taken by all three codes to lift stakes - there is clear alignment across the industry on where we need to be focused,” Mr Allen said.

“This additional funding will enable all industry participants to have greater confidence in the future of the industry.

Wednesday's dramatic boost comes on top of the $4.77 million announced in January to support stakes, infrastructure and youth development.
Exactly how the three racing codes will choose to allocate their extra earnings to stakes will be a major talking point.

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