30 November 2007

$500 million - the cost of Equine Influenza

THE horse flu epidemic will cost the racing industry more than $500 million in TAB betting turnover, The Daily Telegraph can reveal.

Sydney racing's long-awaited return at Randwick tomorrow has boosted industry spirits at a time when the full financial toll of equine influenza is only just being realised.

Since NSW racing was virtually shut down by EI in late August,a Tabcorp betting analysis has revealed:

NSW TAB turnover is down $227m or 17 per cent.
Victorian TAB turnover has fallen $77.3m or 7 per cent.
Combined NSW and Victorian TAB turnover losses have reached $304.3m or 12 per cent.

Tabcorp chief executive Elmer Funke Kupper said the "bleeding won't stop just yet'' despite Saturday metropolitan returning in Sydney and Brisbane tomorrow.

" By the time racing is back to normal, hopefully in early 2008, the loss in turnover will grow to approximately $550 million,'' Funke Kupper said.

The EI outbreak has caused NSW to abandon 193 race meetings since August 25 - 30 on the metropolitan area, 31 at the provincials and 132 in country centres - which has precipitated the betting downturn.

Sydney racing's comeback at Randwick tomorrow is expect to attract a bumper crowd of more than 30,000 through the gates.

The raceday features a high-profile clash of world-class sprinter Takeover Target and 2004 Golden Slipper winner Dance Hero in the $100,000 Arrowfield Stud Sprint.

Tabcorp is planning a massive promotional drive over the summer months designed to entice punters back to the racetracks beginning with its $100,000 Pick 6 promotion at Randwick tomorrow which is available for any racegoer that correctly selects the winners of races three to eight.

" We need to get people back on track,'' Tabcorp's wagering supremo Robert Nason explained. "Our on-course turnover has really suffered during EI in Sydney - it has been a big part of our downturn in turnover.

" Tabcorp has major promotions planned over the next few weeks including the Pick 6 promotion for Randwick (tomorrow). At Rosehill next Saturday, we are preparing to give the first 2000 people through the gates a $10 TAB betting voucher.''

Nason also indicated Tabcorp will announce the introduction of two new bet types next month - the Duet and Running Double.

The Duet requires punters to pick the first two or three over the line in any race while the Running Double requires a successful bettor to pick winners of successive races.

Racing NSW chief executive Peter V'Landys said the TAB betting turnover downturn won't necessarily cause race club prizemoney to fall next year.

" Although TAB turnvoer is down, fortunately the Federal Government has provided the racing indutrry with an excellent financial assistance package which amounted to over $200 million to both NSW and Queensland,'' V'Landys said.

" This has kept most participants in the NSW racing industry viable during the EI crisis and will allow clubs to maintain prizemoney levels despite the revenue falls resulting form the TAB turnover downturn.

" In fact, the Federal Government assistance package should enable us to actually increase rae prizemoney in the near future to give the NSW racing industry the much-needed financial impetus to get back on its feet.''