Racing: Increase in stakes not seen as priority

Racing Minister Kieran McAnulty speaks to the media after announcing Government approval of TAB NZ's deal with Entain. Photo / Dean Purcell

The thoroughbred industry will find out on June 15 how the financial windfall from the TAB/Entain deal will be spent, but bosses say increasing stakes can’t be their only priority.

All three racing codes are guaranteed more money over the next five years as Entain will pay $150 million to the TAB as part of their strategic partnership, which will see them run the day-to-day betting business.

Between $90m-$100m of that will go to the racing codes over five years and while that includes greyhound racing, they are facing more serious issues after Racing Minister Kieran McAnulty put the code on a final warning because of continued concerns over dog welfare.

The RIB report into the greyhound code suggests some progress has been made but demands more.

Greyhound racing at least has until after the election to get its house in order, with the minister making it clear an immediate closure is not being considered.

While greyhound racing has its issues, thoroughbred and harness racing are hoping the boost in their funding will help them lift stakes and invest in infrastructure, human and horse welfare, and education and pathways into the industries.

New Zealand Thoroughbred Racing will announce at Karaka on June 15, the day before the weanling and broodmare sale, how they will prioritise what could be as much as an extra $20m for the next five years.

Chief executive Bruce Sharrock says while there will be stake increases, it can’t be a financial sugar rush followed by a crash five years later.

“We know we are getting more money for the next five years and, yes, some will go into stakes,” says Sharrock. “But we also have to look at infrastructure like our tracks, we have a responsibility to improve both human and horse welfare and we want to have pathways to make it easier for people to become part of our industry, whether as a career or an owner or breeder.

“So we have an obligation to dedicate some of this money to working on those areas because if we throw it all at stakes and we haven’t built a better industry, then those stakes may not prove sustainable.

“We think under the new arrangement turnover will go up so we should continue to get higher distributions but we are also aware that our share of the upfront money only lasts five years.”

The stakes balance is hard to find as some owners and trainers will want minimum stakes increased, but does a maiden going from $14,000 to $16,000 help anybody that much?

Or it is better to boost Saturday stakes and make the biggest day of the racing week something aspirational?

Harness Racing New Zealand could get between $4m-$5m more than this season each year for the next five years and their racing general manager Catherine McDonald says the HRNZ board will await their exact allocation before deciding how to invest it.

“We would hope stakes will return to what they were before the TAB distribution cuts last year but we can’t only use this money for stakes.

“We run 2700 races a year and if we increase every race by $1000 for example, that is over half that money gone,” says McDonald.

“The board will assess what other areas need attention to help keep growing harness racing and they will be sensible in our approach to how we allocate these funds.”