Review of Market Environment
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Review of Market Environment
INTRODUCTION ............................................................................................................................................... 1
WHAT HAS CHANGED SINCE ‘A BETTER FUTURE’ ............................................................................................. 2
GRNSW ............................................................................................................................................................... 2
INDUSTRY DEVELOPMENTS ........................................................................................................................................ 4
PRODUCT EXPANSION STRATEGY .................................................................................................................... 5
SWOT ANALYSIS .............................................................................................................................................. 6
NSW GREYHOUND INDUSTRY FLOW OF FUNDS ............................................................................................... 7
CUSTOMERS .................................................................................................................................................... 8
MARKET AND COMPETITORS ........................................................................................................................... 9
DEMOGRAPHIC PATTERNS ............................................................................................................................. 11
PROJECTED POPULATION GROWTH ........................................................................................................................... 11
MEDIAN WAGE/ SALARY ........................................................................................................................................ 12
PROPERTY PRICES .................................................................................................................................................. 12
GREYHOUND ACTIVITY .................................................................................................................................. 21
PARTICIPATION LEVELS .................................................................................................................................. 23
RACING ACTIVITY ........................................................................................................................................... 24
RACE MEETINGS ................................................................................................................................................... 24
RACES ................................................................................................................................................................. 25
STARTERS ............................................................................................................................................................ 25
ON-COURSE ATTENDANCE ............................................................................................................................. 27
ON-COURSE ATTENDANCE AT TAB TRACKS ................................................................................................................ 29
ATTENDANCE DEMOGRAPHICS ................................................................................................................................. 29
GAMBLING DATA ........................................................................................................................................... 33
RACE WAGERING .................................................................................................................................................. 33
GAMING VERSUS RACING ........................................................................................................................................ 35
NSW TOTE .......................................................................................................................................................... 36
CORPORATE BOOKMAKERS ...................................................................................................................................... 38
NSW GREYHOUND MARKET ................................................................................................................................... 39
RACE WAGERING LANDSCAPE ....................................................................................................................... 40
GOVERNMENT REVENUE ............................................................................................................................... 41
PRIZE MONEY ................................................................................................................................................ 42
CLUB PERFORMANCE ..................................................................................................................................... 44
DISTRIBUTION, OTHER INCOME AND EXPENDITURE ...................................................................................................... 44
FINANCIAL PERFORMANCE ...................................................................................................................................... 45
1
Introduction This document aims to establish the current position of the sport and to identify the emerging
trends, risks, opportunities and challenges facing greyhound racing in New South Wales (NSW). In
essence, it intends to provide a fact base on which the new strategic plan can be built.
The last formal strategic plan ‘A Better Future’ was released in 2004. The planning process for ‘A
Better Future’ included consultation with industry stakeholders and a review of the market
environment in the form of an ‘Industry Profile’ conducted in 2003.
Greyhound Racing NSW (GRNSW) is required to prepare a strategic plan for the greyhound racing
industry within 12 months of the commencement of the Greyhound Racing Act 2009, which came
into effect on July 1 2009. Following this, GRNSW is to prepare a strategic plan for the greyhound
racing industry at least every 3 years. Each strategic plan must be prepared in consultation with the
Greyhound Racing Industry Consultation Group (GRICG) and other industry stakeholders.
From late 2006 to mid 2007, the GRNSW Board undertook a detailed strategic planning process to
create a vision for the NSW greyhound racing industry. This process led to the development of
GRNSW’s current vision and strategic priorities.
Vision
To be Australia’s premier supplier of greyhound racing, delivering an attractive and innovative
wagering product, focused on long-term sustainable growth that will drive increased prize money
returns to participants and appeal to consumers.
Strategic Priorities
• Maximise prize money returns to participants
• Simplify and streamline club funding model
• Well defined plan for managing industry infrastructure
• Ensure allocation of race meetings align with participant demand whilst maximizing
wagering turnover
• Create a fair, equitable and transparent grading system that ensures the viability of the
industry by promoting the highest standard of racing possible
• Promote and protect the well being of greyhounds throughout their complete lifecycle
• Promote greyhound racing widely to grow our audience and drive wagering growth
• Strengthen relationships with key stakeholders for the benefit of NSW greyhound racing
2
What Has Changed Since ‘A Better Future’
GRNSW
The development and implementation of Operating Standards and Guidelines for NSW
greyhound racing clubs addressing the issues of corporate governance, risk management, asset
management, fiscal management, marketing and racing.
The development of a Scheme of Distribution Policy enabling a fairer and more equitable
distribution of funds across the industry.
Creation of the Clubs Secure system, an online web database used to monitor the financial and
racing performance of all clubs in NSW.
The development of a comprehensive animal welfare policy that established a set of principles
and standards for dealing with greyhounds at every stage of the lifecycle (this policy is currently
under review).
Development and implementation of a comprehensive capital development strategy including
significant facility upgrades, for example, the refurbishment of Wentworth Park.
Overhaul of the Greyhound Industry Development Fund, including the introduction of the
Maintenance and Venue Improvement Allowance, to make its operation increasingly transparent
and easier to understand.
The establishment of Betfair Blue Paws, the NSW Breeders and Owners Incentive Scheme that
offers owners and trainers opportunities for greater racing returns in NSW.
Introduction of the Club Partnership Grant designed to engage all clubs in a co-ordinated
marketing effort. The grant provides funding assistance to all clubs for their marketing and
promotional activities.
Introduction of the Country Challenge, which aims to create a series that can be followed by
participants and the public across the state, generating an increased level of interest compared
to venue-by-venue cup meetings.
Establishment of Greyhound Media Services to maximise the value of the industry’s broadcast
rights.
The acquisition of deFax Sporting Publications Pty Ltd to protect the industry’s intellectual
property relating to race form data and to maximise industry revenue.
Creation and re-development of thedogs.com.au website, which has developed as the number
one portal for greyhound news and form. The website is central to GRNSW’s intentions to
pursue growth opportunities that currently exist in the national wagering market.
3
The implementation of a Metropolitan Racing Policy resulting in a single race club conducting
race meetings at Wentworth Park.
The introduction of the Club incentive scheme which reformed the on-course tote commission
receivable by clubs and added an incentive for clubs to pay prize money at above minimum
standards.
Establishment of the Greyhounds as Pets program, an initiative of GRNSW to re-home
greyhounds at the end of their racing careers.
Implementation of a Race Fields Use Fees regime which imposed a fee on wagering operators to
ensure they make a reasonable contribution towards the cost of staging racing events – at 10%
of the operator’s Gross Margin on the NSW greyhound product.
Transfer of the regulatory functions relating to greyhounds from the Greyhound and Harness
Racing Regulatory Authority (GHRRA) to GRNSW. GRNSW is now responsible for all aspects of
the sport stretching from integrity and probity matters to commercial affairs.
The adoption of an aggressive growth strategy to take advantage of the commencement of Sky
Racing2 by converting existing Non-TAB racing to TAB C status1.
1 Prize money for TAB C meetings will be paid at 50% of current TAB levels.
4
Industry Developments
The split of thoroughbred racing vision between Sky Channel and TVN for a period of 4 months
resulted in a downturn of wagering revenue for the NSW greyhound industry, impacting on prize
money and club funding.
Equine Influenza crippled the NSW thoroughbred industry and had a devastating impact on
greyhound racing due to the industry’s reliance on TAB distributions for growth.
Independent Review of the Regulatory Oversight of the NSW Racing Industry. The Scott Review
examined whether there were adequate powers and procedures in place for the effective and
efficient regulatory oversight of the three codes of racing in NSW by their respective industry
controlling bodies.
The NSW Government released the Report of the Statutory Five Year Review of the Greyhound
Racing Act 2002 and the Harness Racing Act 2002. This Review was prepared by the NSW Office
of Liquor, Gaming and Racing. It recommended the Government dissolve GHRRA and transfer
the responsibilities for integrity to GRNSW. In addition, it recommended that it provide an
independent board for GRNSW and an independent integrity auditor.
The Cameron Report was an independent review of the wagering regulations and sustainability
of the NSW racing industry by Alan Cameron AM, commissioned by the NSW Government. The
most important recommendation to the NSW greyhound industry being:
The three racing codes should agree to amend the Intercode Agreement to provide that returns
to each code from TAB distributions are in proportion to the percentage of wagering generated
by each code; in the absence of such an agreement, the Government should over-ride the
Intercode Agreement and the Racing Distribution Agreement such that the distributions from the
TAB are made directly to each code and in proportion to the percentage of wagering generated
by each code.
The NSW Government to date has refused to act on this matter.
The introduction of Race Fields Legislation means that all Australian wagering operators now pay
GRNSW a fee for using NSW greyhound race field information.
The Betfair versus Racing NSW court case. Betfair Australia issued proceedings against two
racing bodies, Racing NSW and Harness Racing NSW. The challenge claims the 1.5% product fee
imposed on the turnover of wagering operators wishing to cover racing in the NSW is
anti-competitive and places an unfair burden that restricts interstate trade in favour of local
operators.
The Productivity Commission public inquiry into gambling, which is now complete and been sent
to the Australian Government for consideration. The final report amongst other things,
recommends the development of a national funding model for the racing industry – with the key
element of this model being a national product fee regime.
The launch of Sky Racing2 by Tabcorp on 30 March 2010 will enable GRNSW to expand its
product offering and coverage of the sport.
5
Product Expansion Strategy
The release of Sky Racing2 on 30 March 2010 by Tabcorp provided GRNSW with the opportunity to
implement the first stages of the product expansion strategy, outlined as follows:
Significantly increase supply of TAB meetings wherever it is possible so as to position the
sport to be able to maximise its revenues under a national product fee regime
The ‘aggressive’ strategy, will supply up to 8 additional TAB meetings per week. At 20 meetings a
week, the NSW greyhound industry will be the largest product supplier to the Australian wagering
industry of any code. The additional TAB meetings will simply be up to 400 of existing non-TAB
meetings converted into TAB C meetings. Instead of these meetings no longer making any financial
return, they will in the future due to the returns that GRNSW will receive from interstate TABs,
betting exchanges and corporate bookmakers betting on these meetings.
The strategy is aimed at maximising: turnover, exposure of NSW greyhound racing, prize money and
racing opportunities for participants. The strategy also provides the opportunity to expand the core
customer base of NSW greyhound racing by capitalising on scheduling changes occurring in other
codes. It will also allow the sport to continue operating as it presently does should a national
product fee be introduced. If a national product fee regime does not eventuate, the product supply
strategy can be scaled down.
The pros and cons of the ‘aggressive’ strategy are outlined below.
Pros Cons
Proactive strategy aimed at readying the sport
for a move towards a national funding model.
Some additional meetings may run at a loss
under the current funding model.
Maximises opportunities arising from launch of
Sky Racing2.
Complex strategy that may be difficult to
communicate to stakeholders
Provides opportunities for participants to race
for increased prize money (all financial analysis
of additional meetings is based on prize money
at 50% of current TAB levels).
Uncertainty persists around the ongoing funding
model of the industry, meetings may not be
viable if changes occur.
Positions GRNSW as the largest supplier of racing
product in Australia.
Additional meetings would most likely be run
midweek representing a significant change to
the status quo for regional / country meetings.
6
SWOT Analysis In
tern
al
Fa
cto
rs
Strengths
Participation more affordable than other
racing codes
Attractive wagering product
Passionate stakeholders
Proactive leadership
Strong vision
thedogs.com.au website
Customer service charter
Accessible consultation mechanisms
Ability to expand quickly
Ability to react to market changes
Industry based commercial board
Policy and regulatory responsibilities
Strong hobbyist / amateur sport
Strong operating and governance
standards
Well located tracks
Weaknesses
Promotions, brand and public image
Prize money levels
Lack of professionalism of participants
Lack of funding for growth
Ageing infrastructure and facilities
Administration and maintenance costs
On course revenue and attendance
Participants reluctance to change
Low youth participation
Occupational Health and Safety issues
(e.g. infrastructure)
Internal IT systems
Intercode agreement
Information for prospective owners
Slow wagering growth
No track in the South Eastern region of NSW
Limited racing life of the greyhound
Losing higher grade dogs interstate
Poor customer service in TAB retail (e.g. form)
NSW racing industry growing at a much slower
rate than the rest of Australia
Ex
tern
al
Fa
cto
rs
Opportunities
Grow revenue and increase market share
Sky Racing2
Race fields legislation
Increase race program and exposure of
sport
State and Local Government funding
Improve oncourse facilities
Strategic partnering
Media coverage
Image management
Better use of Intellectual Property
Government lobbying
Increased community involvement
Improve education of participants
Grading policy
Wentworth Park
Change of State Government
Cameron Report
New market opportunities (Australian
Capital Territory)
Growth of corporate bookmakers, betting
exchanges and interstate totalisators
Threats
Community perception of gambling
Community pressure regarding greyhound
welfare
Implementation of national product fee regime
Local Government policy (e.g. zoning laws)
Increasing costs for participants
Competition from other gambling and wagering
products
Reduction in breeding activity
Regulatory change and ongoing uncertainty
Unstable economic environment
Increasing cost of living
Reduced participation levels
Reducing volunteer network
Growing middle class and shrinking lower class
Majority of tracks not owned by sport
Sale of Tabcorp Wagering
Urban consolidation (fewer backyards)
Change of Minister
Dog exports
Land less affordable in growing regions
Legislative uncertainty
NSW Greyhound Industry Flow of Funds
7
Greyhound Industry Flow of Funds
8
Customers
Who are our customers?
The following table provides an overview of the NSW greyhound racing industry’s customer base,
including current and potential customers.
1st tier 2nd tier 3rd tier 4th tier
Greyhound
punters
Harness and
thoroughbred
punters
Sports betting and
gaming
participants
Non-gamblers
Leisure and entertainment
International punters
Tier one customers are classified as those who wager on greyhound racing on a regular basis, either
on-course, at home, at the TAB or the local pub. Second tier customers are categorised as harness
and thoroughbred punters who may wager on greyhounds from time to time. Third tier customers
are those who access other gambling products such as sports betting, poker machines and casinos.
Fourth tier customers are those who do not gamble at all. International punters that gamble on
selected Australian greyhound races also form a small part of the NSW greyhound racing industry’s
current customer base.
Although not a primary customer of the sport, it can be argued that a small segment of the customer
base could also be placed in the leisure and entertainment category – i.e. those who do not wager
but participate in the sport or attend greyhound race meetings for entertainment and leisure
reasons.
9
Market and Competitors
Who are our competitors and what is our market?
Growth in the greyhound racing industry is directly linked to returns on wagering. Traditionally
anyone competing for the wagering dollar in Australia would be classified as a direct competitor with
the NSW greyhound racing product – our primary market. However, other gambling products such
as casinos, poker machines, lotto and keno can be also be classified as competitors of the sport, as
they have the potential to shift expenditure and sales from away from the race wagering market. It
is likely that many customers in this market do not identify as gamblers, especially those playing
lotto and Keno. The international race wagering market should also be considered as a possible
future source of revenue for the NSW greyhound racing industry.
Previously it has been suggested that greyhound racing is competing with products and services
from the entertainment and leisure market, in particular when it comes to on-course attendance.
However, it can be argued that people who attend greyhound racing do so because they are either:
1. interested in wagering on greyhounds
2. are owners, trainers or breeders
3. are part of a one-off special event such as a bucks party
4. know someone who attends the sport and are trying something different
5. are curious to see what takes place at the track.
It is a tenuous link to hypothesise that an individual when deciding whether or not to attend a
greyhound race meeting will be tossing up between other options such as going to the movies, a
concert or dining out. This example demonstrates that the sport of greyhound racing is not in direct
competition with the leisure and entertainment market. At this stage it is not clear GRNSW would
benefit substantially from committing energy and resources in an attempt to attract leisure and
entertainment customers that are driven by different motivators to the sport, especially as it is
unlikely to be conducive to growth in wagering revenue.
Gaming
Poker machines, Lotto, Keno
Race Wagering
(primary market)
Australian Gambling Market
International
Race Wagering
NSW greyhound product
10
Competitor Snapshot (primary market)
Greyhound Racing VIC Racing NSW Racing Victoria Harness Racing NSW GRNSW
Brand Elite sport Unclear Glamorous and entertaining Unclear Unclear
Community
Engagement
Very Active Not Active Active Not Active Not Active
Animal Welfare Strong Not in focus Strong Not in focus Improving
Strategic Plan Yes Underway Yes No Underway
Vision To effectively manage,
promote and develop a
vibrant industry to ensure
expansion and future
wagering growth to
maximize opportunities and
returns for all participants.
To establish a dynamic NSW
Thoroughbred Racing
Industry which advances
participation, ensures
integrity and delivers quality
racing at all levels.
To be a leading world-class
sporting industry, delivering
integrity, quality and
entertainment.
To develop a commercially
sustainable and vigorous
harness racing industry
marked by high participation
rates across all segments, a
commitment to maximise
returns to stakeholders and
ongoing growth in wagering
turnover.
To be Australia’s premier
supplier of greyhound racing,
delivering an attractive and
innovative wagering product,
focused on long-term
sustainable growth that will
drive increased prize money
returns to participants and
appeal to consumers.
Profit Loss in 2009 Loss in 2009 Loss in 2009 Loss in 2009 Profit in 2009
Status within Code Leader Follower Leader Follower Follower
Infrastructure Cost effective
(14 tracks)
Unmanageable
(116 tracks)
Manageable
(67 tracks)
Sustainability questionable
(30 tracks)
Sustainability questionable
(35 tracks)
Website Average Below Average Above average Above Average Very Good
Wagering
Revenue
Growing Growing slowly Growing Growing Growing
Investment Ability Strong
$25 million
Very Weak
Minus $3.5 million
Weak
$4 million
Ability to support non-racing
infrastructure is high.
Weak
$800,000
Soon to be very strong with sale
of Harold Park, which is expected
to inject $30 million.
Weak
$2.85 million
11
Demographic Patterns
The following maps provide an insight into a number of demographic patterns in NSW that may
impact on the greyhound racing industry. The maps are broken up into statistical subdivisions to
represent the major regions and centres within NSW. The first map plots the locations of greyhound
tracks in NSW. The second map illustrates the median property price for each region, while the third
map shows the median salary. The fourth map illustrates projected population changes and the fifth
map provides a breakdown of breeding activity, trainers and owners by region.
Projected Population Growth
The population of NSW is projected to increase to 9.07 million by 2036, an increase of 2.25 million
(or 33%) on the 2006 population of 6.82 million. Three-fifths of this growth will be driven by natural
increase (births minus deaths) and two-fifths by net migration2.
Growth will vary by age group. Between 2006 and 2036 the population under 18 years of age is
projected to increase by 19%, those aged 18 to 64 years by 21%, and those aged 65 years and over
by 111%. Consequently the percentage of the population aged 65 and over is expected to rise from
13.5% in 2006 to 21.5% by 2036.
The population of the Sydney region is projected to grow from 4.3 million in 2006 to 6.0 million by
2036, an increase of 1.7 million or 40% over the period. This increase represents about three
quarters of the State’s projected population growth to 2036. This growth is sure to have an impact
on the availability of land close to the city which will most likely be impossible to come by, already
high property prices are also likely to continue to increase within and surrounding Sydney.
The regions within Coastal NSW are projected to have the greatest growth between 2001 and 2031.
Illawarra region is projected to have the greatest growth of any region in NSW (45%). The
populations of the other major urban centres of Wollongong and Newcastle are projected to grow
by 21.8% and 18.9% respectively between 2001 and 2031.
Inland NSW will grow between 2001 and 2031 but at lesser rate than Coastal NSW, Sydney and other
major urban centres. The Northern and North Western regions are expected to experience
population decline in the first ten years of the projections period, but then grow in the remainder of
the period. The Murray region (8.5%) is projected to have the largest growth within Inland NSW,
while the Northern region is expected to grow the least (0.05 %) over the 30 year period.
The North West is the only region in NSW to experience negative growth between 2001 and 2031.
The projected decline is a continuation of a 40 year downward trend. Since 1961, this region has
been losing people to other parts of Australia.
2 State and regional population projections: 2008 release, NSW Department of Planning.
12
What does this mean?
Every region, except the greater area surrounding Broken Hill, is expected to experience population
growth from 2001 to 2031. A large percentage of NSW greyhound tracks are located in the areas
that are projected to grow significantly. Interestingly, the South Eastern region, which is expected to
experience growth of over 30% up to 2031, currently has no TAB tracks.
Median Wage/ Salary
The highest median wages/salaries are found on the coastal regions from the Hunter region
downwards, with Sydney, Newcastle and Wollongong topping the list. Interestingly the Richmond
Tweed and Mid North-Coast regions have the lowest median wages/salaries for the state. This may
be due to large amounts of retired people relocating as part of a sea change. Outside of the cities,
the Hunter, Illawarra, Central West and South Eastern regions have a median wage / salary of over
$34,000 a year3.
What does this mean?
The highest income earners in NSW are currently located in cities. People with a higher income are
more likely to be able to afford to own a greyhound. Understanding the spread of median /wage
may help identify where future owners of greyhounds will come from.
Of note is the Australian Capital Territory which has a median wage/salary of $44,282, one of the
highest in Australia. Although GRNSW does not control racing operations in this jurisdiction, it
represents an untapped market in terms of a future customer base for NSW greyhound ownership.
Property Prices
Property prices may impact on peoples’ abilities to participate in the sport of greyhound racing,
especially trainers and breeders who require land to house facilities and greyhounds.
The map of median property prices clearly indicates that property is more affordable in inland NSW.
Along coastal NSW from Illawarra to Tweed Heads the median property price is above $300,000. As
you move inland from the coast into the Central West, Murrumbidgee, Murray, Northern, Northwest
and Murray regions property becomes much more affordable with the median price under
$215,0004.
3 Australian Bureau of Statistics, Regional Wage and Salary Earner Statistics, Australia, 2005-06.
4 Rent and Sales Report, September Quarter 2009, No. 90, Housing NSW.
13
What does this mean?
Breeders and trainers require land, so the price of property is likely to have an impact on where the
future generations of trainers and breeders are located. The most affordable land is currently
located inland in regional NSW, quite some distance from the current premier racing facilities which
offer the highest prize money. The following table provides a breakdown of NSW by region, including
the number of TAB tracks, litters registered, trainers and median property price.
Region Number of TAB Tracks Median Property Price Trainers Litters5
North West 1 $153,000 101 60
Murray 0 $194,000 22 14
Central West 1 $204,000 128 110
Illawarra Region 1 $212,000 59 41
Northern 1 $212,000 83 25
Murrumbidgee 1 $215,000 60 55
South Eastern 0 $288,000 110 125
Newcastle 1 $303,000 230 166
Mid North Coast 1 $304,000 101 71
Hunter Region 1 $310,000 90 68
Wollongong 2 $320,000 64 29
Richmond Tweed 2 $366,000 169 143
Sydney 3 $412,000 253 248
5 Represents litters registered from 1 January 2009 to 31 December 2009. Note that 115 (approx 724) litter
registrations had no address provided and 50 (315) litter registrations were listed with interstate addresses.
14
Track Locations – All Sectors
15
$312,000
$310,000
$304,000
$204,000
$153,000
$212,000
$194,000 $215,000
$288,000
$366,000
$320,000
$412,000
$303,000
Median House Price
16
$33,371
$39,799
$32,664
$30,703
$30,524
$34,717
$33,346 $33,661
$38,812
$36,661
$35,516
$34,905
$33,320
Median Wage/ Salary
$45,242 Australian
Capital Territory
17
Projected Populations of NSW Regions in 2031 and Population Change 2001-2031
18
Trainers: 22
Owners: 98
Litters: 14
Trainers: 83
Owners: 94
Litters: 25 Trainers: 101
Owners: 236
Litters: 60
Trainers: 110
Owners: 250
Litters: 125
Trainers: 90
Owners: 171
Litters: 68
Trainers: 101
Owners: 224
Litters: 71
Trainers: 169
Owners: 154
Litters: 143
Trainers: 60
Owners: 145
Litters: 55
Trainers: 128
Owners: 315
Litters: 110
Trainers: 59
Owners: 289
Litters: 41
Trainers: 64
Owners: 138
Litters: 29
Trainers: 253
Owners: 7,174
Litters: 248
Trainers: 230
Owners: 905
Litters: 166
Breakdown of Trainers, Owners and Breeders in NSW by Major Region
19
Region Tracks Trainers Litters Owners6
Sydney Appin, Richmond, Wentworth Park, Potts Park, Gosford. 253 248 7,174
Newcastle The Gardens. 230 166 905
Central West Mudgee, Cowra, Bathurst, Forbes, Lithgow. 128 110 315
Illawarra Nowra. 59 41 289
South Eastern Goulburn, Young. 110 125 250
North West Broken Hill, Dubbo, Coonabarabran, Dubbo. 101 60 236
Mid North Coast Grafton, Kempsey, Wauchope, Taree. 101 71 224
Hunter Region Maitland, Muswellbrook. 90 68 171
Richmond Tweed Tweed, Lismore, Casino. 169 143 154
Murrumbidgee Wagga Wagga, Temora. 60 55 145
Wollongong Bulli, Dapto. 64 29 138
Murray No tracks. 22 14 98
Northern Moree, Armidale, Tamworth, Gunnedah. 83 25 94
6This category represents the number of active owners from beginning of 2006 to the end of 2009. There is likely to be some overlap with the trainer and breeder
categories as there are a number of individuals in both of these groups which also own greyhounds. It is also not clear whether all owners still have greyhounds racing at
this point in time.
20
As illustrated in the preceding map and table, the majority of breeding activity, trainers and owners
are located in the greater Sydney area. This area stretches North to Gosford, South to Appin and
West to Londonderry. Sydney accounts for over 80% (7,174) of owners from 2006-2009, with
Newcastle and the Illawarra regions with the next highest amount of owners at 905 and 289
respectively. The ownership figures confirms the hypothesis that people living in the city with higher
incomes are more likely to be able to afford to own a greyhound. What is surprising though, is the
small number of owners represented in the Wollongong region which has two well established
tracks in close proximity to a growing population. In summary, there are a small percentage of
owners located in the regional areas outside of the major cities and densely populated areas.
From 2006-2009 there were 88 active owners in the Australian Capital Territory demonstrating the
NSW industry has some representation in Canberra. With a population of over 340,000, a large
percentage of which are young professionals with high disposable incomes, Canberra has the
potential to provide an increased ownership base for the NSW greyhound racing.
The most active regions for breeding outside of Sydney are the Newcastle, Richmond Tweed, Central
West and South Eastern areas.
In terms of trainers, there are 230 registered in the Newcastle region, only 20 shy of the Sydney
total. After Newcastle, the Richmond Tweed and Central West areas have the next highest number
of registered trainers with 169 and 128 respectively, which is not surprising given the number of
tracks in these areas. Following this, the spread of trainers is reasonably even across the South
Eastern, North West, Hunter Mid North Coast and Northern regions, ranging from 83 to 100
registered persons. Not surprisingly there are a small amount of trainers registered in the Murray
region which currently has no tracks. In terms of the South Eastern region, which has no TAB tracks,
it is likely the trainers service the surrounding regions which host a number of easily accessible TAB
tracks.
21
Greyhound Activity
NSW is renowned for its major contribution to Australian greyhound racing breeding stocks, with
6,054 greyhounds named in 20087, in comparison to 3,863 in Victoria and 1,628 in Queensland. NSW
also has the largest number of pups whelped in Australia of any state and territory. In 2008 7,866
pups were whelped in NSW in comparison to 6,660 Victoria and 2,328 in QLD.8
There are concerns, however, that a large percentage of NSW racing stock are being moved
interstate to be raced and that a number are being exported overseas. GRNSW believes that up to
2,000 greyhounds per year are being moved interstate to be raced. In addition, figures provided by
the Australian Quarantine and Inspection Service indicate that up to 1,000 greyhounds from NSW a
year are being exported overseas. These figures suggest NSW is a net exporter of greyhounds.
GRNSW is attempting to improve data collection in order to better understand the severity of this
issue.
The number of pups whelped in NSW, with the exception of 2007, has been in slow decline from
2006-2009. Interestingly, this trend does not appear to be directly linked to the number of litters
registered for the same period, rather it seems to indicate variances in the average litter size from
2006-2009, illustrated in the table below.
Average Litter Size
2006 5 per litter
2007 6.6 per litter
2008 6 Per litter
7 Please note that all years displayed in tables and graphs are by financial year. For example, where it says
2009, it represents the period beginning July 2008 to end of June 2009. 8 2009 figures for Greyhounds Named and Litters Registered not available from Greyhounds Australasia.
6,500
7,000
7,500
8,000
8,500
9,000
2006 2007 2008 2009
Pups Whelped
22
The number of litters registered has remained relatively steady from 2002-2008, noting slight spikes
in activity in 2005 and 2006. This indicates that breeeding activity is still reasonably strong and not in
decline.
The number of names registered in NSW has varied from 2002-2006. It is unclear what caused this
variation, however, the amount of names registered has steadied recently at just over 6,000 per year
from 2007-2008. Despite the variance, the number of names registered in 2008 is almost identical to
that of 2002. When compared to other states, NSW registered 2,191 and 4,426 more names than
Victoria and QLD in 2008, indicating NSW has the largest greyhound racing population in Australia.
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2002 2003 2004 2005 2006 2007 2008
Litters Registered
4,800
5,000
5,200
5,400
5,600
5,800
6,000
6,200
6,400
6,600
2002 2003 2004 2005 2006 2007 2008
Greyhounds Named
23
The number of sires registered in NSW was steady from 2002-2007. In 2008 this number dropped
significantly from 190 to 119 due to an increase in the use of Frozen Semen Insemination, which has
made it easier to access higher quality sires for breeding.
Participation Levels
In 2007 GHRRA ceased the registration of owners and reclassified the owner / trainer and attendant
categories. These changes make it difficult to compare data and identify trends for many of the
industry participant categories from 2002-2009. When the re-classified categories are analysed from
2008-2009, a slight increase in the number of registered persons, attendants and owner / trainers is
evident.
Participation as an owner in a syndicate is one of the most affordable and easiest ways to become
involved in greyhound racing. There are currently 364 syndicates registered in NSW. This figure is
quite low when compared to Victoria which is estimated to have approximately 2,000 active
syndicates.
218212
190
205
190
119
0
50
100
150
200
250
2003 2004 2005 2006 2007 2008
Registered Sires
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
1,800
2002 2003 2004 2005 2006 2007 2008 2009
Trainers Registered
24
The number of trainers registered in NSW from 2002-2009 has fluctuated significantly, peaking at
1,770 in 2003 and reaching a low of 1,497 in 2006. Overall there has been an increase of 13.7% in
the number of trainers from 2002-2009, which is positive for the industry. However, it is important
to put these numbers into perspective by comparing NSW to Victoria, which had 1,363 more trainers
registered in 2008.
Racing Activity
NSW conducts more greyhound races and maintains more racetracks than any other Australian state
or territory - NSW has 35 racing tracks compared with Victoria which only has 14 active tracks. NSW
currently runs approximately 750 Non-TAB race meetings, with another 630 covered by TAB. In total,
NSW held 1,384 meetings and had over 240,000 on-course attendees during 2009.
Race Meetings
Race dates and the numbers of meetings conducted by NSW clubs are controlled by GRNSW. Overall
the number of meetings conducted in NSW has decreased by 3.2% from 2005-2009. Specifically, the
number of TAB meetings conducted across the same period fell by 7.4%, whilst there were only
minor movements in the Metropolitan and Non-TAB sectors. In 2009, NSW conducted 549 more
greyhound meetings than Victoria and 751 more meetings than Queensland.
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009
Number of Race Meetings Conducted
Metropolitan TAB Non-TAB
25
Races
The number of races conducted during meetings for the Metropolitan and TAB sectors is largely
controlled by the industry’s commercial arrangements with Tabcorp. Of the 43,211 races conducted
in Australasia in 2009, 14,260 were conducted in NSW, compared with 10,003 in Victoria and 5,763
in Queensland. The total number of races conducted in NSW from 2005-2009 decreased by 4.3%. In
2006 GRNSW reduced the supply of TAB meetings to the practical minimum required under the
Racing Distribution Agreement and this had a flow-on effect to the number of races conducted at
TAB venues in the years following.
Starters
A reduction in the number of race meetings and races from 2005-2009 resulted in a slight decrease
in the number of starters in NSW across the same period. Despite this, NSW still had the most
starters in Australia during 2009, with 34,637 more starters than in Victoria and 65,557 more starters
than in QLD.
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2005 2006 2007 2008 2009
Number of Races Conducted
Metropolitan TAB Non-TAB
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2005 2006 2007 2008 2009
Number of Starters at NSW Greyhound Meetings
Metropolitan TAB Non-TAB
26
The number of individual starters at NSW greyhound meetings has been in decline from 2006-2009.
It is unclear what has caused this trend, however it could be due to less greyhounds making the track
(falling out of the system) or an increase in the number of greyhounds being sent interstate to race.
8000
8200
8400
8600
8800
9000
9200
9400
9600
2006 2007 2008 2009
Number of Individual Starters at NSW Greyhound Meetings
27
On-Course Attendance9
9 Figures do not include complementary attendees, such a Club members, owners and trainers.
160,000
165,000
170,000
175,000
180,000
185,000
190,000
195,000
200,000
2005 2006 2007 2008 2009
Paid On-Course Attendance All Sectors
0
50
100
150
200
250
300
350
400
450
500
2005 2006 2007 2008 2009
Average Paying Attendees per Meeting
Metropolian TAB Non-TAB
28
Paid on-course attendance at NSW greyhound meetings has declined from 2006-200910. The drop in
on-course attendance has also led to declines in on-course totalisator revenue, falling by 20% from
2006-2009.This trend is most pronounced in the Non-TAB sector where on-course totalisator
revenue has fallen by 58% compared to the Metropolitan 10% and TAB 5.5% sectors. Overall
totalisator revenue on greyhound racing in NSW and Australia continued to grow across the same
period.
These figures may reflect the move from on-course attendance to wagering and watching greyhound
racing off-course on television at a range of different venues, a trend that has been made easier by
continued improvements in technology and the growth of corporate bookmakers.
Interestingly over the same period, the average paying attendees per meeting in the Metropolitan
sector have increased, indicating that attendance at Metropolitan racing is becoming increasingly
popular. Both Monday and Saturday nights at Wentworth park have experienced an increase in
average paying attendees from 2006-2009. It should be noted that this trend is not reflected in
overall attendance levels for NSW, rather it seems to represent a redistribution of attendance
amongst the Metropolitan, TAB and Non-TAB sectors11.
10
Noting a spike in 2008 attendance as a result of Equine Influenza. 11
Figures do not include complementary attendees, such a Club members, owners and trainers.
0
100
200
300
400
500
600
700
2006 2007 2008 2009
Wentworth Park Average Paying Attendees Per Meeting
Monday
Saturday
29
On-Course Attendance at TAB Tracks
The following diagram maps on-course attendance levels at TAB tracks by sector from 2005-2009.
These figures do include complimentary attendees such as Club members, trainer and owners. The
Premier and Metropolitan sectors have experienced an increase in attendance levels from
2005-2009, while attendance has remained steady in the Principal sector across the same period.
Attendance Demographics
A range of other interesting trends in on-course attendance can be taken from the Australian Bureau
of Statistics (ABS) Multi-Purpose Household Survey. The survey obtains data about the
characteristics of persons aged 15 years and over who attend sporting events as spectators in
Australia. The study attempts to detail the numbers of persons who attended sports in 1995, 1999
and 2006 together with the socio-demographic characteristics of spectators, the most popular
sports, and frequency of attendance12.
It should be noted that this survey and the related data displayed in the following graphs cannot be
compared with any of the attendance data held by across the same years. This is because the ABS
collects data via surveys from a limited amount of households (in this case 18,000) and uses a
weighting process to adjust the results to infer results for the total population. However, the
numbers do provide an interesting insight into the popularity of greyhound racing in comparison to
other sports and to the demographics of those who have attended greyhound racing in Australia
from 1995-2006
12 Australian Bureau of Statistics Study on Sports Attendance, Australia 2005-06.
0
20,000
40,000
60,000
80,000
100,000
120,000
2005 2006 2007 2008 2009
On-course Attendance at Tab Tracks by Sector
Premier Principal Metropolitan
30
The most popular sports in terms of attendance levels in Australia in 2006 were:
1 Australian rules football 2.5m
2 Horse racing 2.0m
3 Rugby league 1.5m
4 Motor sports 1.5m
5 Cricket (outdoor) 0.7m
6 Rugby union 0.7m
7 Soccer (outdoor) 0.6m
8 Harness racing 0.4m
9 Tennis 0.3m
10 Basketball 0.2m
11 Greyhound racing 0.2m
12 Netball 0.2m
Source: Australian Bureau of Statistics Study on Sports Attendance, Australia 2005-06.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
1995 1999 2006
Persons Attending Greyhound Racing by Sex
Male Female
31
Market research conducted for GRNSW in 2005 found there is a public perception that greyhound
racing is a sport that is attended:
• by older men
• by more men than women
• by middle-age working class males
• by older people (40+).
8%
12%
23%
20%
12%
15%
10%
0%
5%
10%
15%
20%
25%
15–17 18–24 25–34 35–44 45–54 55–64 65 and over
Persons Attending Greyhound Racing by Age 2006
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
18–24 25–34 35–44 45–54 55–64 65 and over
Person Attending Greyhound Racing by Age
1995 1999 2006
32
The majority of these findings are confirmed by the ABS Multi-Purpose Household Survey. The ABS
found that in 2006 over 57% of attendance at greyhound racing was by people aged 35 and above.
The ABS research also illustrates that greyhound racing is predominantly attended by males.
According to the ABS over 64% of those who attended greyhound racing in 2006 had only attained a
maximum of year 12 or below education, with 50% of thoroughbred attendees in the same category.
In terms of attendance by occupation, approximately 47%13 of attendees at greyhound racing in
2006 can be categorised at working class, with 42% of thoroughbred attendees in the same
category.
While the percentage of younger attendees for the sport has dropped, the age bracket of 25-34
accounts for largest percentage of attendees over the period 1999-2006. This trend is positive and
following enjoyable on-course experiences may translate into a new generation of industry
participants, assuming access to the sport is easy. The concern however, is that growth in
attendance at greyhound racing has only occurred in the 55 and over age category from 1999-2006.
The ABS research confirms that the core customer base of greyhound racing in relation to on-course
attendance in NSW is working class males aged from 25-64.
13
It should be noted that 28% of participants failed to adequately describe their profession, so it is likely that
an even higher number of attendees were of working class background.
33
Gambling Data
Expenditure on gambling has continued to grow, increasing by 214% from 1993 to 2008. Expenditure
on gaming has grown at an even faster rate increasing by 255% over the same period. In
comparison, expenditure on race wagering has grown at a much slower rate, increasing by only 54%
from 1993 to 2008.
Within the gambling market, gaming has the overwhelming market share followed by race wagering
and sports betting. In 2008 gaming’s share of the national gambling market in terms of expenditure
was 87.1%, race wagering held 11.3%, with the sports betting picking up the remaining 1.6%.
Race Wagering
Greyhound racing and wagering are interdependent, meaning the long term growth of the NSW
greyhound racing industry is directly linked to returns from wagering. Traditionally, this has been
dependent on the Intercode agreement and the performance of the NSW totalisator as a whole.
However, this all changed with the introduction of Race Fields Legislation in 2008, which now
rewards the NSW greyhound industry for growing the sport at the national level. The introduction of
Race Fields Legislation provided an extra $3 million in revenue in 2009, representing just over 9% of
total revenue for GRNSW.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
$m
Gambling Market
Gaming
Gambling
Racing
sports bet
34
The national race wagering market has experienced continued growth from 1994 to 2008.
Thoroughbred racing seems to have been the main benefactor of this growth, growing at a faster
rate than sports betting, harness racing and greyhound racing14.
When you compare race wagering turnover in NSW to that of national turnover, it is clear that the
NSW industry has not benefited from the last decade of strong growth in the Australian race
wagering market. In fact, the NSW racing industry has only experienced growth in turnover of 9% for
the period from 1993-2008, in comparison to 54% nationally.
14
Separate figures for the greyhound and harness industries were not available.
0
5,000
10,000
15,000
20,000
25,000
$m
National Wagering Market
Throughbred
Harness and Greyhound
racing
sports bet
Racing
0
5,000
10,000
15,000
20,000
25,000
$m
Total Racing Turnover NSW and Australia
Aust
NSW
35
Another interesting point of note, is the decrease of NSW racing revenue as a percentage of total
gambling revenue 1994-2008. Over the same period, the percentage of revenue earned from gaming
in NSW continued to increase, showing that racing and gaming revenue are on diverging paths. NSW
gaming revenue in 2008 accounted for over 90% of total gambling revenue in NSW, while race
wagering only contributed just over 9%.
Gaming versus Racing
The proportion of household disposable income being spent on gambling, gaming, racing and
gaming machines has been in decline from 2002-2008. Interestingly expenditure per capita on
gaming and gaming machines has increased significantly over the same period, while expenditure
per capita on gambling as a whole has decreased slightly. There seems to be a re-distribution of
expenditure towards other types of gambling, as the overall market for race wagering is still growing
in Australia, however, not at the same rate as gaming and total gambling revenue.
0
10
20
30
40
50
60
70
80
90
100
%
Gaming and Racing in NSW as a % of Total Gambling Revenue
NSW Gaming
NSW Racing
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
%
Expenditure on Gaming machines, Gaming, Australian Racing
& Gambling as a % of Household Disposable Income
Gaming machines
Gaming
Racing
Gambling total
36
NSW Tote
The market share for all 3 racing codes in terms of NSW TAB has remained steady from 2006-2009,
notwithstanding a significant redistribution of market share in 2008 due to the impact of Equine
Influenza. With the exception of 2006 and 2007 the greyhound racing industry has maintained a
market share of just over 17 % for the period from 2004-2009.
0
200
400
600
800
1,000
1,200
%
Per Capita Expenditure in Australia on Gaming, Gaming
Machines, Racing and Total Gambling
Gaming machines
Gaming
Racing
Gambling Total
0%
10%
20%
30%
40%
50%
60%
70%
80%
2006 2007 2008 2009
NSW TAB Market Share - 3 Codes
Greyhound
Harness
Thoroughbred
37
17.6% 17.6% 17.3%15.9%
27.0%
17.3%
0%
5%
10%
15%
20%
25%
30%
2004 2005 2006 2007 2008 2009
Greyhound NSW Tote Market Share
$220,000,000
$230,000,000
$240,000,000
$250,000,000
$260,000,000
$270,000,000
$280,000,000
$290,000,000
$300,000,000
NSW Greyhound TAB Annual Turnover
38
Corporate Bookmakers
New innovations such as telephone and internet betting have had a mixed impact on the NSW
wagering market. While the introduction of interactive gambling supported the growth of the
industry early this decade, it also introduced new competition in the market, particularly from the
Northern Territory based corporate bookmakers.
The start of internet gambling has corresponded with phenomenal growth in revenue of corporate
bookmakers. The broad range of gambling products offered by corporate bookmakers has been the
major appeal for interstate gamblers. The convenience of a ‘one-stop-shop’ has attracted many
online gamblers across Australia to Northern Territory based corporate bookmakers. This, in turn,
has constrained the development of the NSW race wagering industry.
Corporate bookmakers experienced growth in their share of NSW greyhound racing industry sales
from September 2008 to March 201015, however not at the same rate as in 2008. In comparison over
the same period, totalisators experienced minimal sales growth.
15
GRNSW only started to collect data on Corporate Bookmakers and Betting Exchanges from September 2008.
-20%
0%
20%
40%
60%
80%
100%
120%
Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
Sales Growth on Previous Corresponding Period
Totalisators Corporate Bookmakers
39
NSW Greyhound Market
Totalisators across Australia still collect the majority of sales from NSW greyhound racing industry,
holding just over 87% of the NSW market share. Corporate bookmakers hold just over 10% market
share of NSW greyhound sales and this can be expected to grow into the future, however, most
likely at lower rates than before. Ongoing sales growth of interstate totalisators and corporate
bookmakers is likely to be beneficial for the NSW greyhound industry, as it will translate into
increased revenues through the collection of Race Fields Use fees.
87.27%
10.38%
2.36%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Totalisators Corporate Bookmakers Betting Exchanges
NSW Greyhound Market Share by Wagering Provider 2009
40
Race Wagering Landscape
The last 10 years have seen significant change in the race wagering landscape, driven largely by the
internet wagering boom that has seen unparalleled growth in cross border betting. This technology
revolution has seen the shift towards a ‘national wagering market’ and created opportunities for
greater competition within the industry. Most notable has been the rise of Northern Territory
corporate bookmakers and the licensing of Betfair in Tasmania.
Technology now allows punters to bet on whatever they want, regardless of their location. The
increased accessibility of alternative wagering operators means that consumers are increasingly
choosing to bet on the basis of price, service and product - seeing a move away from the dominance
of totalisator wagering.
Intercode Agreement
The NSW industry has been operating under a 99 year industry agreement between the three codes
of racing since privatisation of the NSW TAB in 1998. Under this arrangement the three codes
receive fixed percentages of the NSW TAB distribution, which no longer reflect each code's
contribution to NSW TAB revenue. The Intercode agreement does not take into account the
changing landscape of the industry, nor provide any incentive or reward for efficiency, innovation or
growth. In fact, it has hindered the sport from further growth, as previously NSW greyhound racing
did not have the funds to pursue new opportunities, nor any incentive to do so. It is estimated that
greyhound racing in NSW has been subsidising the harness and thoroughbred codes to the tune of
approximately $8 million a year since the privatisation of the NSW TAB.
Cross Border Betting
The evolution of technology and specifically ‘free trade between States’ has enabled cross border
betting to escalate. Previously it was argued that cross border betting was unattractive for various
jurisdictions because the income derived from wagering did not always result in a return to where
the product was generated. However, the introduction of Race Fields Legislation in NSW has
somewhat reduced this inequity, enabling the NSW greyhound industry and other racing codes to
collect returns from interstate TABs, betting exchanges and corporate bookmakers.
Race Fields Legislation
The introduction of Race Fields Legislation in 2009 means that all Australian wagering operators now
pay GRNSW a fee for using NSW greyhound race field information. This fee is payable directly to
GRNSW and as such there is a direct correlation between the performance of NSW greyhound racing
and the race fields revenue GRNSW receives from Australian wagering operators. Race Fields
Legislation provides opportunities and incentive to promote and grow NSW greyhound racing to a
national audience.
41
Corporate Bookmakers
The activity of corporate bookmakers has grown dramatically as a result of attractive operating
conditions, licensing and taxation arrangements in the Northern Territory, considered more
favourable than those that apply elsewhere in Australia. A significant percentage of wagering is now
occurring through corporate bookmakers which may operate 24/7, receiving bets via electronic
communications.
On-course bookmakers
The decline of the on-course bookmaker has been steady over the last twenty years. Bookmakers in
NSW believe they are disadvantaged in the current operating environment, especially in comparison
to the operating conditions of corporate bookmakers. GRNSW supports the removal of restrictions
on NSW bookmakers to allow them to operate on a level playing field with corporate bookmakers.
Technology
Technology developments have driven growth in telephone, internet and interactive16 betting, both
locally and internationally and this has made wagering extremely competitive and accessible.
Wagering on the greyhound product is literally now offered 24 hours a day, 7 days a week.
National Product Fee
The Productivity Commission’s position on a national product fee is premised on the principle that
the level of remuneration that the racing codes receive should be determined by the amount of
betting that takes place on the races they provide. The Commission recommends a national product
fee be levied on all Australian wagering operators based on their gross revenue relative to a
particular product supplier (this is congruent with the GRNSW approach to race fields fees). Whilst
the Commission does not recommend a specific price to be charged, it notes that somewhere
between 5 and 20 per cent of gross revenue could be paid as a product fee.
Government Revenue
Racing generates a large amount of taxation revenue for the NSW State Government. In the 2007
year, race wagering contributed $147 million to NSW Government revenue. The NSW greyhound
industry has contributed on average $13 million a year to NSW government revenues from
2005-2009. This figure does not include the broader social and economic benefits that greyhound
racing delivers to the state each year. The following table outlines estimates of NSW Government
revenue earned from TAB turnover on NSW greyhound meetings from 2005-2009.
2005 $13,580,214
2006 $13,854,225
2007 $12,459,668
2008 $13,404,576
2009 $13,503,939
16
Foxtel offer interactive wagering via the remote control on their units.
42
Prize Money
Prize money paid in the Non-TAB sector has remained relatively steady from 2005-2009. However,
prize money in the TAB and Metropolitan sectors has increased substantially across the same period,
especially from 2008-09. This was the result of a concerted effort by GRNSW to increase returns to
industry participants.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
2005 2006 2007 2008 2009
Total Prizemoney Paid in NSW by Club Sector
Metropolian
TAB
Non-TAB
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2002 2003 2004 2005 2006 2007 2008 2009 2010
Total Prize Money Paid in NSW
As prize money is a major driver of industry parti
however the ability to increase prize money
money paid to NSW participants increased significantly from 2002
GRNSW was able to deliver an increase of
money paid in NSW in 2009 was
In 2010 prize money paid is projected to reach
An additional $1.3 million in prize
Non-TAB meetings will be converted to
TABs, corporate bookmakers and betting exchanges
return per race for owners in NSW
0
500
1,000
1,500
2,000
2,500
3,000
ACT NSW
$
Average Prize Money Per Race in Australia 2009
$1,776
$0
$500
$1,000
$1,500
$2,000
$2,500
2005
Average Prize Money Per Race in NSW from 2005
43
is a major driver of industry participation, stakes growth is a key
prize money is directly driven by returns from race
money paid to NSW participants increased significantly from 2002-2009 by 32%. Most notably,
o deliver an increase of over $2.5 million (14.3%) from 2007-2009. Total prize
money paid in NSW in 2009 was $17,433,586 in comparison to Victoria which paid out
is projected to reach $20,129,580 in NSW.
$1.3 million in prize money will be offered for the new TAB C meetings.
meetings will be converted to TAB C meetings, bringing increased revenue from interstate
and betting exchanges. The expansion will also increase
per race for owners in NSW.
NT SA TAS VIC QLD
Average Prize Money Per Race in Australia 2009
$1,707
$1,872
$1,892
2006 2007 2008
Average Prize Money Per Race in NSW from 2005-2009
cipation, stakes growth is a key goal of GRNSW,
race wagering. Prize
2009 by 32%. Most notably,
2009. Total prize
paid out $24,257,000.
meetings. Up to 400
bringing increased revenue from interstate
crease the average
QLD WA
Average Prize Money Per Race in Australia 2009
$2,234
2009
2009
44
There is need for NSW greyhound racing to continue to become more competitive with other States,
in terms of prize money per race. Average prize money per race has improved significantly in the last
five years to be 3rd highest in Australia, only behind that of VIC and WA. In VIC, the other major
greyhound jurisdiction, the average prize money paid per race in 2009 was $2,424 only $190 above
the NSW return of $2,234 per race. With the increase in prize money announced on 2 March 2010,
prize money per race will increase by approximately $100 per race based on 2009 figures.
A continuation of NSW's inability to provide a competitive return to owners compared to other
States, may discourage owners and trainers from racing or training greyhounds in the state over the
longer term. In turn this could impact both on the quality of greyhounds entered in NSW races and
the attractiveness of wagering on NSW greyhound race meetings.
Club Performance
Distribution, Other Income and Expenditure
Distributions to clubs are intended to assist them to meet their recurrent operating costs and fund
prize money for their race meetings. Scheme of Distribution payments to clubs have increased by
16.8% from 2005-2009, with the majority of this growth occurring over 2008-09.
The Prize Money Ratio is applied to ensure distribution payments are used by clubs primarily for
prize money. Bar 2008 where the Premier, Principal and Country sectors slightly underperformed on
this ratio, all club sectors have performed above their relevant benchmarks for the period of
2005-2009, indicating that clubs are passing on the increases in distribution payments in the form of
prize money to participants. Due to changes in the benchmarks for the prize money ratio for the
Premier, Principal and Country sectors in 2008, it is not possible to graph the trends in this area.
45
Financial Performance
The creation of the Clubs Secure System in 2005 enables GRNSW to monitor the financial and racing
performance of all clubs in NSW. Under the Operating Standards a number of benchmarks (ratios)
have been established for measuring a club’s financial performance. The following series of graphs
illustrates the performance of each club sector against each ratio from 2006-2009.
Performance Ratio Objective How it is measured Benchmark
Expense Ratio To manage clubs efficiently by keeping operating expenses to a minimum
(Total Expenses – Prize Money) / Total Income
< 50%
Entrepreneurship Ratio To maximise non-distribution income to assist in boosting prize money and expenditure on on-course facilities
(Total Income – Distribution – Grants) / Distribution
>20%
Race Day Margin Ratio To manage race day activities effectively
(Race Day Income – Distribution – Grants) / (Race Day Expenses – Prize Money)
>50%
Financial Results Ratio To achieve a surplus to assist in building working capital to withstand an adverse event
Net Income / Income >0%
46
The graph above indicates that all club sectors have managed their operations efficiently from
2006-2009. Of note is the sharp improvement of the Principal sector’s efficiency and the ongoing
decline of the Metropolitan sector’s performance in this area.
Notwithstanding the Metropolitan sector’s underperformance on the Entrepreneurship ratio in
2006, all club sectors have outperformed the benchmark for this ratio from 2006-2009. Surprisingly
the Country sector has outperformed all other club sectors by a significant amount across this
period.
0
10
20
30
40
50
60
2006 2007 2008 2009
%
Expense Ratio All Clubs 2006-09
Metro
Premier
Principal
Country
0
20
40
60
80
100
120
2006 2007 2008 2009
%
Entrepreurship Ratio All Clubs 2006-09
Metro
Premier
Principal
Country
Benchmark < 50%
Benchmark > 20%
47
The above graph indicates that Metropolitan, Premier and Country club sectors have continued to
manage their race day activities effectively from 2006-2009. Of concern though, is the decrease of
the Principal sector’s performance in this area.
All club sectors financial results took a hit in 2007 due to a temporary reduction in the
administration allowance paid to them by GRNSW. Following this the Metropolitan, Premier and
Principal sector’s have improved and continued to achieve a good financial result up to 2009. Of
concern though, is the ongoing underperformance of the Country club sector which has not
managed to surpass the Financial Result Ratio benchmark from 2006-2009.
0
20
40
60
80
100
120
140
2006 2007 2008 2009
%
Race Day Margin Ratio All Clubs 2006-09
Metro
Premier
Principal
Country
-6
-4
-2
0
2
4
6
8
10
12
14
%
Financial Result Ratio All Clubs 2006-09
Metro
Premier
Principal
Country
Benchmark > 50%
Benchmark > 0%
48
Overview of Income and Expenditure from 2005- 2009
2009 2008 2007 2006 2005
Income $ $ $ $ $
TAB Distributions 29,713,255 27,223,034 28,948,129 28,223,877 28,971,119
Interest & Other 267,576 257,388 274,053 1,240,401 307810
EI Government Grant − 500,000 − − −
Race Field Information Use Fees 3,059,808 − − − −
Total Industry Income 33,040,639 27,980,422 29,222,182 29,464,278 29,278,929
Expenditure Snapshot
Central Body Costs 4,984,277 5,034,126 4,967,838 5,079,113 4,908,763
GIDF Allocations 2,750,000 2,272,776 2,197,452 2,078,396 2,183,204
Payments to Clubs 23,863,578 21,092,855 19,632,296
22,091,346 20,953,333
Industry Advancement Initiatives 550,000 510,000 420,000 180,000 1,233,629
Total Expenditure 32,147,855 28,909,757 28,176,837 29,428,855 29,278,929
Surplus / Deficit 892,784 -929,335 1,045,345 -1,071,312 −
The greyhound industry faced a number of challenges from 2005-2009 in terms of financial
management. The sport was severely affected by the broadcast rights dispute in 2006, returning to a
normal financial scenario in 2007. In 2008 the racing industry was rocked by Equine Influenza and 2009
saw the introduction of Race Fields Information Use Fees.
After a number of years of up and down movements in revenue and expenditure, the greyhound
industry in NSW is in a comparatively strong position financially. A significant result in 2009 was the
recovery in TAB Distribution income from the Equine Influenza impacted 2008. After falling by 6.2% in
2008 TAB Distributions rebounded with growth of 9.1% in 2009 to a total of $29,713,255 – the highest
level ever recorded.
Between 2005 and 2009 the greyhound industry’s wagering revenue from the totalisators only
increased by 2.5%, however, from 2008-2009, when Race Field Information Use Fees are included,
wagering revenue increased by 20.4%. The right to charge a fee for the use of race fields information is
likely to continue to have a positive impact on wagering revenue into the future, especially across the
2010-11 financial years as the new TAB C meetings come online.
49
As can be seen in the graph above total industry income was relatively stagnant from 2005-2008,
however increased significantly over 2008-09. In 2009, the industry’s overall financial position showed
a surplus of $892,784, with retained earnings of $1,662,285 as at 30 June 2009. In 2009 GRNSW
reduced its drawdown on industry income by 6.4% to $1,459,000.
Total expenditure from 2005-2009 has increased, again most notably from 2008-2009 as a result of
Race Field s Use Fees expenses, costs for the merger of GRNSW with GHRRA, an increase in prize
money payments under the scheme of distribution and an increase in allocations to the GIDF. The
sharp increase in expenditure from 2008-09 has been matched with an increase in revenue thanks to
strong fiscal management and strategic positioning by GRNSW management and the Board.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2005 2006 2007 2008 2009
Revenue Trends 2005-2009
Total Industry Income TAB Distributions
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2005 2006 2007 2008 2009
Expenditure Trends 2005-2009
Total Expenditure Prizemoney GIDF
50
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