News & Media

29 April 2008 RWWA Provides Record $112.6m for WA Racing

Racing and Wagering Western Australia (RWWA) will be returning to the Western Australian racing industry a record amount of $112.6 million next financial year (2008/09).

The total amount of $112.6m comprises:

• Distribution to Industry Participants and Clubs
• Racing Industry Capital Expenditure
• Grants to Clubs for Capital Expenditure
• Industry Subsidies

In addition, RWWA will be making an allocation of nearly $2 million from sports betting to be available for grants at the discretion of the Minister for Sport and Recreation.

In 2008/09, RWWA has budgeted for the State Government to receive nearly $57 million in tax from RWWA’s wagering operations. 

RWWA Chairman Ross Bowe said the increase in distribution was constrained by the impact of the equine influenza outbreak in the Eastern States.

“The 3.4% increase or $3.6 million increase in distribution to industry participants and clubs in 2008/09 is a creditable amount in light of a difficult current financial year,” he said.

“After 3 years of double digit growth in wagering turnover in WA, the forecast increase in turnover for 2007/08 is only expected to be around 3%, primarily due to the effect of equine influenza.”

The RWWA model is regarded nationwide as being one of the most efficient in generating returns to the racing industry. For every pari-mutuel racing wagering dollar generated by the TAB/RWWA, it is budgeted to return 7.0 cents distribution to the racing industry in 2008/09.

This is an improvement on RWWA’s return of 6.3 cents in the dollar in 2006/07 and the national industry average of 5.8 cents return in the pari-mutuel racing wagering dollar for 2006/07.

For the three year period from 2005/06 to 2007/08, the WA racing industry has also received a $20 million contribution from the State Government in regional and country grants funding.

 RWWA will contribute an additional $12 million in metropolitan and country racing club grants for the three year period ending July 2008 representing an overall contribution to the industry by the Government and RWWA in grants of $32 million.   

“Despite the effect of equine influenza on the current year’s wagering turnover, RWWA is still confident that racing clubs within WA have an adequate level of funding and stakemoney which will continue to provide a sustainable future for the racing industry in this State across all participant and club sectors,” Mr Bowe said.

“However, RWWA is facing signicant threats and challenges in its future competitive environment, with issues such as the High Court decision re Betfair, the impact of the Victorian Government’s decision re the wagering licence currently held by RWWA’s key pooling partner, Tabcorp, post 2012, and ongoing competition from local and interstate racing and sports bookmakers.”

“RWWA is the major funding vehicle for the WA racing industry and potential threats are of concern to the long term viability of the industry.”

Racing and Gaming Minister Ljiljanna Ravlich welcomed the record return to the racing industry, delivered as it was in the face of some major challenges.

 "RWWA continues to do an exemplary job in managing the racing industry in Western Australia, this was highlighted during the equine influenza crisis during the year,” Minister Ravlich said.

“I am delighted RWWA has been able to continue to increase returns to the industry and maintain the livelihood of thousands of people in Western Australia.”

Richard Burt
Chief Executive Officer