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Racing board boosts cash to codes by $6m

The New Zealand Racing Board has found an extra $6 million to return to its members over the next three years – and there may be more to come.

The extra money comes from "across-the-board efficiencies" as part of new ceo Chris Bayliss' review of operations as he looks at ways to turn the industry around.

A revised forecast released yesterday reveals the racing industry can expect a $412 million cash injection over the next three years.

An extra $6 million will be returned to the three codes – New Zealand Thoroughbred Racing, Harness New Zealand and Greyhound Racing.

The industry body, operator of the TAB, expected a return of $134 million this financial year, but that forecast has now been increased by $1 million.

The following financial year will see a $137 million return and $140 million in 2014-15.

Board spokesman John Mitchell told NBR ONLINE the extra money came efficiencies across the board.

He says Mr Bayliss' plan to turn the industry around has the board re-evaluating all areas of operation to see how business can be improved.

He also hinted at the possibility of there being more money for the codes once the half-yearly results are finalised in a couple of months.

Board chairman Alan Jackson says the targets are challenging.

“Trading conditions broadly remain uncertain, but there is confidence our forecasts, while ambitious, are very achievable and are a significant step toward delivering sustainable growth in earnings for the racing industry.” 

Last month the racing board held its first annual meeting for five years.

Dr Jackson told the gathering the board’s betting turnover was $1.622 billion in the year to July 31 and underlying profit distributed to the three codes was $133 million.

Mr Bayliss also outlined his "plan for a plan" to turn the industry around, focusing on:

  • Culture.
  • Capabilities.
  • Customers.
  • Communities.
  • Convergence of thinking.

bcunningham@nbr.co.nz

More by Blair Cunningham

Comments and questions

Good. Let's get those stakes up. They are the lifeblood of the industry and have been stagnant for a decade or more when accounting for inflation.

$1.62 billion in revenue. No wonder some parents can't afford to feed their dependants!

About time the Greens called for an inquiry into this to see how much of the $1.62 billion was in welfare handouts which directly contributed to malnourished children by irresponsible, inept parents.

Are you numerically challenged? That was turnover which means most of that money went back to punters in winnings, less some small percentage of rake.

Lotto is far more destructive, with all winnings going only to a few hands, and provides few jobs. The horse racing industry is one of NZ's biggest livestock earners and actually forms an important part of the social safety net for people who would otherwise be totally out on their bums.

Climb down out of your ivory tower and come and shovel some horse poo for a living with real people who just wonder where there next meal is coming from.

How do these guys get the monopoly on gambling? About time they faced the real world and real legal competition!
The dairy board, meat board and other crony capitalists have gone. Let's allow Betfair, William Hill and the Aussie TAB in. Betfair kills NZ TAB for options and odds.

Ever heard of the net?

That competition you mention has been here for years using the product but not contributing a cent to support it

The TAB I might add pays out an awful lot more percentage wise than does Lotto or Pokies AND it helps create and support a hell of a lot of NZ jobs

Review the law - it is illegal to gamble online unless it is through the TAB.

In Aussie and the UK they have multiple bookies (all employing duplicated back-office staff) at each race track, all with different and definitely sharper odds. The TAB gouges about a 20% margin on many sports games.

The NZ Racing Board should look into Lower Hutt TAB branch. It is under-staffed and the service is very poor. The staff make so many mistakes that the punters lost a lot of money. Mistakes like punching wrong meetings, wrong races and wrong horses. It is either one of those.

Would appreciate the Racing Board look into it and make a change.

Betfair contributes nothing to the NZ racing industry, and has done nothing for the Australian racing industry. They are parasites.

The poor old NZ racing industry has suffered, and is suffering from regulatory smothering that has locked it into the 1950s.
I urge the government to take away those regulations that are preventing natural progress and let the sun in.
Clubs should have ownership of their race days. The "councils" should give the same clubs ownership of their grounds.
Then we might see a natural restructuring that better reflects modern-day travel and a more economical use of resources as some clubs amalgamate and put on a show that the punter cannot resist.
After all, it is the punter that employs all who work in racing, not the racing board.
For instance, could someone please tell me why Australia and NZ TB industries have separate stud books?

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