Gallop South is expecting to distribute $3.4 million in stakes this season, $690,000 less than in the season just concluded.
"Gallop South is budgeting for a lean profit of $40,000. We believe through this awkward financial period it is imperative to get as much money back to the clubs as possible," GS chief executive Andre Klein said.
Gallop South, comprising 12 thoroughbred racing clubs in Otago and Southland, staged 40 meetings (384 races) last season.
This was an increase of two meetings and 38 races. The average number of horses per race was 10.46 (9.82).
"The improvement in field size is an indication of the health of our industry locally," Klein said.
"It is one of the reasons we are confident of battling through tough times."
Course betting was $3.36 million, up $290,000, and off-course up $2.57 million to $33.3 million.
Fixed dividend betting rose by $311,000 to $3.041 million. Nationally, turnover was down 7.5%.
GS has 38 meetings (23 industry, 14 feature and one premier) programmed for this season.
The minimum stake for the industry meetings is expected to be between $5500 and $6000 compared with $7000 last season.
The minimum for the feature meetings is $7000 to $8000 compared with $8000 to $10,000.
The Beaumont Racing Club will not stage a meeting this season. This is due to lack of patronage and a dwindling committee. The situation of the club is being assessed.
The Wingatui, Wyndham and Winton tracks are due back in use this spring after reconstruction work.
There has not been racing at Wyndham for two years. The last meeting at Wingatui was in February. The Otago Racing Club, which operates Wingatui, is budgeting for a loss of $75,000.
"The Wingatui venue costs between $20,000 and $25,000 a month to operate. It highlights the difficulties clubs face with rising costs," Klein said.
The Otago club faces a decline in income of $25,000 with the decision of the Eureka gaming machine trust to discontinue grants to the horse racing industry.
Klein said most clubs in GS would be showing a major loss if gaming grants failed to materialise in the next 12 months.
Malcolm Little has been appointed Otago regional manager.
He was previously assistant to Klein.
Christine Barringer, racing manager for GS for five years, has been made redundant.
Casey McRae, who was recently appointed marketing manager for the ORC, has resigned for health reasons.
