RV scotches funding concerns

Racing Victoria CEO Rob Hines has allayed fears about the future state of funding for Victorian racing, saying that increased competition with the TAB from corporate bookmakers had not massively affected racing's bottom line.

Hines sent a statement to media outlining the future funding expected from TABCORP and predicted wagering revenue will continue to grow. He said funding from TABCORP had grown by nine percent in the past year, which enabled Racing Victoria to raise prizemoney levels earlier this year.

He expects net income of $248m from the TABCORP Joint Venture and wagering operators in the next financial year, another six per cent growth, and said that should ensure that prizemoney levels remain at current levels.

He also acknowledged that corporate bookmakers and betting exchanges had made further contributions through direct sponsorship of clubs and events, something which has assisted in supporting prize money levels

"RVL will continue to strive to maximise the income to the racing industry while making every effort to reduce the costs of the administration of racing in both Country and Metropolitan Victoria," he said.

Advertising restrictions on corporate bookmakers and betting exchanges were lifted in Victoria last year, paving the way for a huge growth in numbers of people betting outside the TAB system.

There were fears that the change could precipitate a massive fall in revenue for TABCORP in Victoria, and subsequently affect funding of racing. However, Hines' statement would indicate that in troubled financial times, the industry and TABCORP are in rude health.