NSW Racing and Online Headwinds

Its a very familiar tune. A local racing organization is complaining that it faces a funding shortfall amidst dwindling wagering revenues.

This time its NSW Racing. Bob Bentley, Chairman of the Australian Racing Board has complained that the industry "faces the greatest challenge in our lifetime", faced with the plethora of competing wagering options for consumers.

The bulk of ARB revenue comes from local TABs, or licensed monopoly wagering shops, in an arrangement that has been in place for many years now. The arrangement is still in place but the TABs, which used to be the punters only choice, are now one of hundreds of betting options and their revenues, and consequently those paid to the ARB are falling.

Australia is certainly not unique in this regard. Canada's Woodpine Entertainment Group earlier in the year were bemoaning the impact of online gambling on their wagering bottom line, while Irish Prime Minister Martin Cullen has come out and said that he will ban online sports betting in Ireland unless operators are prepared to make a contribution to the exchequer.

And the headwinds these local racing and wager monopolies face is considerable. Online online gambling options available to locals number in the thousands, and include sophisticated well presented offering that are often superior to local wagering monopolies.