June 10
The Queensland government on Monday announced significant changes to its wagering taxation structure, putting all betting operators “on a level playing field”, meaning Tabcorp will pay the same figure per dollar bet as its online competitors.
The demerged Tab, however, retains its retail exclusivity until 2044 and it has agreed to pay $150 million to settle a three-year legal dispute with Racing Queensland, centred over whether the wagering giant should have to pay point-of-consumption tax, which incidentally will be increased to an Australian-high of 20 per cent from December 1 by the state government.
It appears that the TAB has “paid” $150 million to ensure it is charged the same rate on turnover as its more agile wagering competitors, yet it will maintain its retail advantage.
It’s $150 million well spent, if you ask me, and TAB’s shareholders appear to agree, the company’s share price increasing 5.3 per cent in the hours following Monday’s announcement.
With that wagering taxation reform out of the way, the ball is now in TAB’s court to also innovate and make it a more attractive proposition for punters, something it has struggled to do to the level of its rivals in recent years.
The parimutuel pools are diabolical – you couldn’t possibly bet into the tote if you valued your betting dollar – and the liquidity of the exotic pools – the trifecta, first four, quadrellas and so on – are decreasing by the day, as the corporates capture the segment of the market and keep the money in-house.
TAB has been promising changes for years, for little result, so now it’s up to managing director and chief executive Adam Rytenskild to show genuine leadership and innovation with the competitive advantage the company will soon enjoy in Queensland (and will be pushing for in other states, particularly Victoria whose joint venture wagering licence is up for renewal in 2024).
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While it was $150 million well spent by the TAB, the same can’t be said for the $2 million being thrown by Racing NSW at its Golden Eagle pop-up race.
The $8 million Golden Eagle (1500m) for four-year-olds will now be worth $10 million (with $1 million to charity), which is ten times the purse for Sydney’s premier three-year-old race of the season, the Group 1 Golden Rose, which is conducted each September.
There was no hiding the fact that Monday’s late afternoon press release – Racing NSW’s big announcements are normally made amid much fanfare via Sky Racing’s TV broadcast – was in direct retaliation to the impending prize-money increases to be confirmed by Racing Victoria, which came on Tuesday. It was an expensive and unnecessary $2 million PR exercise from the state’s racing regulator.
The $2 million would’ve been much better spent on the Golden Rose, which is now worth a third of the $3 million Caulfield Guineas and half the $2 million Coolmore Stud Stakes, Victoria’s best Group 1 races for three-year-olds.
I’m happy to be called a nark, but $10 million for the Golden Eagle – initially flagged to be funded by the ill-conceived TAB Odds and Evens bet type – goes beyond ridiculous, particularly when other quality races rank well below their true standing in relative dollar terms and, more pressingly, an investment in infrastructure and future-proofing NSW’s drenched racetracks is desperately needed.
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Synthetic racing isn’t for me. I can’t bet on it, but it seems many do and it has been a saviour for Racing Queensland in recent weeks, with the Sunshine Coast Polytrack taking on a mountain of meetings as the South East cops a drenching, just as much of NSW has.
The Polytrack was designed primarily as a training tool for Sunshine Coast trainers (there will also be a Polytrack constructed at the Gold Coast in the near future) but it has also served its purpose, ensuring participants can continue to earn a living during the Big Wet and that the punters’ dollar isn’t spent elsewhere.
“With still a month left in the financial year, wagering has again performed strongly with record highs for each of the three codes. While Australia has experienced an abnormal trading environment in recent years, more modest gains are forecast for financial year ’23 and beyond,” a Racing Queensland spokesperson told us this week.
“The installation of a second Polytrack in South-East Queensland [at the Gold Coast] will provide an important contingency plan for training and racing activities. Since the installation of the Polytrack at the Sunshine Coast in December 2021, 15 rescheduled meetings have proceeded, with almost $3.5 million in prize-money and a further $300,000 in bonuses returned to industry participants, along with $100 million in turnover.”
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The extensive discussion with the RQ hierarchy also revealed that the lights will be installed at the Gold Coast as part of the extensive redevelopment of the racecourse in time for the 2024 Magic Millions Carnival, allowing it to be conducted as a Saturday twilight meeting for the first time.
But first, next year’s carnival prize-money increased to a record $11.75 million.
“As a result, the 2023 edition of the Magic Millions will be the first raceday in Australia to stage eight million-dollar plus races, with only the Dubai World Cup meeting and day two of the Breeders’ Cup World Championships, offering more across the globe, with nine apiece,” the RQ spokesperson said.
“As a flagbearer for the Queensland racing industry, Magic Millions plays a critical role in our breeding, racing and events activities and we’re looking forward to the introduction of The Debut and The Syndicate in 2023.”
Racing Queensland, meanwhile, is expected to announce the expansion of stabling in South-East Queensland, which are in short supply at present with locals and interstate trainers expressing a desire to either add to or obtain boxes in the Sunshine State.
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The mysterious Louis Bloodstock – which made a big splash at the Magic Millions National Yearling Sale on the Gold Coast last week, spending $919,000 on 22 yearlings (all sold on day one and bought online) – may have also been active on Inglis Digital’s twice-monthly sale, earlier this week.
When the Louis Bloodstock proprietor is eventually unmasked, it will emerge that he (that part we are certain of) has a large thoroughbred portfolio at their disposal. Whoever the investor is, they certainly had industry figures’ tongues wagging over the past week or so.
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Coolmore’s dual Group 1-winning sprinter Home Affairs (I Am Invincible), the $875,000 Easter graduate, is set to run next Saturday in the Platinum Jubilee (Gr 1, 6f) at Royal Ascot, is one of the pin-up colts for auction house Inglis, but barring misfortune it could have been Magic Millions spruiking the valuable stallion.
The Torryburn-bred and sold Home Affairs was a last-minute withdrawal from the 2020 Magic Millions Yearling Sale, owing to a minor setback, having already won many admirers on the Gold Coast and widely considered to be a million dollar yearling.
Of course, the pandemic then hit and the 2020 Easter sale was one of the biggest casualties of the Covid outbreak in terms of momentarily depressing the marketplace.