Betting turnovers disappoint authority

Press, 26 December 1985, Page 18

Betting turnovers disappoint authority

Betting turnovers last season increased by 6.58 per cent off-course and just 0.70 per cent on-course. The New Zealand Racing Authority, in its thirteenth annual report, records its disappointment at those returns, especially on-course, having regard for the vast capital resources tied up in; racing and the 16.6 per cent inflation rate for the season.• “The fact that on-course turnover is virtually static while at the same time the average transaction value is steadily increasing is most concerning to clubs and the authority as it means that fewer people are attending race meetings,” says the report. “This trend if it continues unabated must evenutally have serious con- ——— ' u . ,

sequences for the industry.” “’The modest increase in T.A.B. turnover during the season hardly compensated for the decline in on-course attendances and indicates: that money is being lost to the industry and not just transferred from one sphere of operations to another.” “Clubs are well aware oft the necessity to retain exist- • ing patrons and attract new ones and are becoming in- . creasingly aware of the necessity to market their product,” says the report. ’The authority in turn is concerned to see that the industry does everything possible to improve its position and to that end has increased the susbidy payable on all sponsorship applied to stakes to 50 cents in the dollar.” Over the past four seasons the T.A.B. had achieved a remarkable growth in profit which had enabled the authority to increase distribution to clubs by an amount much greater than the rate of inflation, but the authority finds it' diffiuelt to see that trend continuing.' “Inflation in the 1985-86 season is estimated by the New Zealand Institute of Economic Research to be at least 15 per cent and thus would require a T.A.B. profit distribution plus training track grant of at least ?27 million in Novem,ber 1986 to equate with the inflation rate," says the report The amount of T.A.B. profit relating to last season

was $24.9 million and $21.5 million of that sum was distributed to clubs on November 1. Racing clubs received $14,178,893 ($11,878,940 'the previous season), trotting clubs $7,211,528 ($5,849,846) and greyhounds $96,139 ($36,779).