Comparing stakes with 20 years ago makes depressing reading. The question is what can be done to reverse the trend.
Relying on betting turnover and sponsorship and on course income from catering will never fix the problem.
Most sports with huge prize money, including NSW racing, seem to derive their income from selling broadcasting rights.
I am not sure exactly how it works but I imagine this scenario, NSW racing sell broadcasting rights to a sports broadcaster in China. They might have 50 million subscribers. 1 million of them are interested in racing and pay $4.00 per week to see the races live on their tv. There is 200 million revenue. The broadcaster pays NSW racing 100 mil and keeps 100 mil for themselves. These are made up figures of course but it must work something like that.
For this to work of course there needs to be a demand to see the product world wide.