RWWA Announces a $20.5M Increase in Revenue for FY2020
Racing and Wagering Western Australia (RWWA) has today announced its financial results for FY2020, with overall revenue from all sources up by $20.5 million, resulting in a gross income of $450.2 million for the year.
Total revenue was comprised of $310.2 million from the Western Australian TAB, $93.2 million from the Western Australian Racing Bets Levy and $46.8 million from other items.
The significant increase in revenue was primarily driven by a 15% growth in income generated by the Western Australian Racing Bets Levy, which is paid by wagering operators who conduct betting on Western Australian racing.
The increase was largely attributed to the halt of national and international sport during the COVID-19 pandemic, resulting in reduced wagering competition from other products.
Income from other items included an additional $12 million in revenue from the first full year of the Point of Consumption Tax, which was introduced in January 2019.
The Western Australian TAB performed well with overall profit up 1.5% from the previous year, to $109 million excluding support costs.
RWWA delivered $163.3 million in funding to the Western Australian racing industry, representing a $4.3 million increase from FY2019.
RWWA continued to invest heavily in its integrity operations with $1.3 million in funding toward prohibited substance control. In total, 8,753 individual horse and greyhound swabs were conducted, with 99.8% of all swabs testing negative.
Welfare of the State’s racing animals remained a priority for RWWA, with a 49% increase in adoptions through its Greyhounds as Pets program, resulting in 309 retired greyhounds rehomed.
In November 2019, RWWA also announced the WA Racehorse Welfare Plan, with many of the initiatives well-progressed throughout the year, including the purchase of its new retraining and rehoming facility, the Off the Track WA Estate.
In line with its commitment to support the communities in which it operates, RWWA provided $233,000 in funding to local community groups through its Community TAB brand.
RWWA Chief Executive Officer Ian Edwards said the organisation was fortunate to be in a strong financial position given the current economic climate.
“Due to the hard work and commitment by our racing participants and RWWA staff, together with the support of the Government, we were able to continue racing safely throughout COVID-19,” Mr Edwards said.
“As a result, RWWA was able to produce solid financial results for the year and continue its ongoing commitment to fund and support the Western Australian racing industry.”
“It is recognised that this did not come without sacrifice, with the implementation of many strict bio-security measures at our racetracks.”
“Our TAB agents were also impacted with the complete closure of the retail network, with all PubTAB’s required to close on 23 March, followed by all TAB agencies two days later. Wagering activity recommenced at retail outlets on 6 June.”
“To mitigate the risk of declining income and ensure the long-term sustainability of the WA racing industry, RWWA made reductions in its own cost base, as well as temporarily reducing prizemoney and breeding bonuses by 20% for a four-month period.”
“Therefore, I would like to take this opportunity to extend my sincere appreciation to our customers, racing participants, TAB agents, Government and staff for their support through what has been a challenging year for all.”
“With the sale of the WA TAB on hold, RWWA’s focus for the current financial year is to continue to manage and drive the performance of the business in the long-term interest of the State’s racing industry.”
The 2020 RWWA Annual Report can be viewed here.