Chief Stipe Posted August 29, 2024 Share Posted August 29, 2024 Experts' wagering warning Paul Tatnell@PaulTatnell29 August, 2024 Australian wagering experts have told the Asian Racing Conference in Japan that local markets are at a 'tipping point' as they work through regulation and taxation battles. The session focused on global wagering trends, challenges, innovations and the World Pool. Entain Australia and New Zealand CFO and deputy CEO, Lachlan Fitt, said the business will have to make adjustments to its wagering offerings if further regulation is enforced. Entain operates Ladbrokes and Neds in Australia. "I think really one of the critical points right now is that given what we're seeing in terms of taxation and some of the increased regulation in the market, the biggest risk for all of that for everyone right now, is over-taxation and over-regulation," he said. "And we are really at a tipping point in Australia that we don't have any more capacity to be able to absorb these increases. "At the end of the day, our margins are already very thin. The only levers we have to pull are reducing marketing technology, promotional investment, or passing on the costs to the customer. And all of those things are negative for the long run for the racing industry." In his presentation to delegates, Fitt said Entain had invested tens of millions of dollars in attracting customers through innovative content and ownership opportunities. "In Australia we have a really competitive market and that's driven innovation over a long period, both from ourselves and our competitors," Fitt said. "As a business what we have tried to do is move a little bit outside pure betting product innovation and look at ways we can drive engagement in racing at the top of the funnel through owners, the Ladbrokes Racing Club, through our content strategy, telling the stories of the participants, the horses, the trainers, the jockeys," he said. "We are a very proudly a racing-first business. And we took on the view that for us to have an industry over the long term that was sustainable and strong, that we had a role to play." Fitt said new government advertising regulations could have a significant impact on wagering turnover and subsequent PRA revenues. He said turnover could decline between 15 and 40 per cent, depending on what regulations the Federal Government announces, which will then impact what Entain can offer punters. "There's a fair range of outcomes right now but we don't have the margins to be able to play with, so we would have no choice but to reduce our investment in marketing, reduce our investment in generosity, pass on higher odds, stop innovating on product," he said. "And all of those things from a punter perspective will mean lower engagement long-term, less enjoyment, less entertainment. We're in a discretionary income space and if customers are losing their money faster and not enjoying it, then they'll go and do something else." The growth of the World Pool has been a key conversation during the ARC so far, which has seen key Australian races open up to major Asian markets. The financial result was strong for local PRAs. Fitt said while the World Pool is good for the globalisation of racing, it is not necessarily the 'silver bullet'. "From a wagering perspective, we have to focus on the customer. And the customer has been telling us they want a range of products. I don't think [the World Pool] is the silver bullet," he said. "But it is a really important tool and vehicle I think that can be used to drive that globalisation of racing. And, certainly in some markets, the view on the wagering benefit will be much stronger than what we would see in Australia or New Zealand." Racing Queensland chief executive Jason Scott also addressed the conference and said while the World Pool is beneficial for big race days, he believes more work needs to be done to understand why customers globally are filtering to illegal markets. "I think World Pool tote is absolutely fantastic for Royal Ascot, for Melbourne Cups, for The Everest, for Japan Cups, but jurisdictions such as Australia, Japan, America, UK race seven-days-a-week, wall-to-wall racing," he said. "To be honest, we need to learn from the illegal markets, illegal markets are growing, why are people going to illegal markets, yes, they use crypto, but the reason is most customers are conscious of return and because the illegal markets are able to offer a greater return through less take outs, less taxes etc … they can grow." Scott also argued the success of Hong Kong's product in terms of how often they race. "Hong Kong is the most-successful jurisdiction in the world and they race two times a week … we simply race too much," he said. Quote Link to comment Share on other sites More sharing options...
Australian wagering experts have told the Asian Racing Conference in Japan that local markets are at a 'tipping point' as they work through regulation and taxation battles. The session focused on global wagering trends, challenges, innovations and the World Pool. Entain Australia and New Zealand CFO and deputy CEO, Lachlan Fitt, said the business will have to make adjustments to its wagering offerings if further regulation is enforced. Entain operates Ladbrokes and Neds in Australia. "I think really one of the critical points right now is that given what we're seeing in terms of taxation and some of the increased regulation in the market, the biggest risk for all of that for everyone right now, is over-taxation and over-regulation," he said. "And we are really at a tipping point in Australia that we don't have any more capacity to be able to absorb these increases. "At the end of the day, our margins are already very thin. The only levers we have to pull are reducing marketing technology, promotional investment, or passing on the costs to the customer. And all of those things are negative for the long run for the racing industry." In his presentation to delegates, Fitt said Entain had invested tens of millions of dollars in attracting customers through innovative content and ownership opportunities. "In Australia we have a really competitive market and that's driven innovation over a long period, both from ourselves and our competitors," Fitt said. "As a business what we have tried to do is move a little bit outside pure betting product innovation and look at ways we can drive engagement in racing at the top of the funnel through owners, the Ladbrokes Racing Club, through our content strategy, telling the stories of the participants, the horses, the trainers, the jockeys," he said. "We are a very proudly a racing-first business. And we took on the view that for us to have an industry over the long term that was sustainable and strong, that we had a role to play." Fitt said new government advertising regulations could have a significant impact on wagering turnover and subsequent PRA revenues. He said turnover could decline between 15 and 40 per cent, depending on what regulations the Federal Government announces, which will then impact what Entain can offer punters. "There's a fair range of outcomes right now but we don't have the margins to be able to play with, so we would have no choice but to reduce our investment in marketing, reduce our investment in generosity, pass on higher odds, stop innovating on product," he said. "And all of those things from a punter perspective will mean lower engagement long-term, less enjoyment, less entertainment. We're in a discretionary income space and if customers are losing their money faster and not enjoying it, then they'll go and do something else." The growth of the World Pool has been a key conversation during the ARC so far, which has seen key Australian races open up to major Asian markets. The financial result was strong for local PRAs. Fitt said while the World Pool is good for the globalisation of racing, it is not necessarily the 'silver bullet'. "From a wagering perspective, we have to focus on the customer. And the customer has been telling us they want a range of products. I don't think [the World Pool] is the silver bullet," he said. "But it is a really important tool and vehicle I think that can be used to drive that globalisation of racing. And, certainly in some markets, the view on the wagering benefit will be much stronger than what we would see in Australia or New Zealand." Racing Queensland chief executive Jason Scott also addressed the conference and said while the World Pool is beneficial for big race days, he believes more work needs to be done to understand why customers globally are filtering to illegal markets. "I think World Pool tote is absolutely fantastic for Royal Ascot, for Melbourne Cups, for The Everest, for Japan Cups, but jurisdictions such as Australia, Japan, America, UK race seven-days-a-week, wall-to-wall racing," he said. "To be honest, we need to learn from the illegal markets, illegal markets are growing, why are people going to illegal markets, yes, they use crypto, but the reason is most customers are conscious of return and because the illegal markets are able to offer a greater return through less take outs, less taxes etc … they can grow." Scott also argued the success of Hong Kong's product in terms of how often they race. "Hong Kong is the most-successful jurisdiction in the world and they race two times a week … we simply race too much," he said.
Wingman Posted August 30, 2024 Share Posted August 30, 2024 The last sentence is a telling statement;i,e "We simply race too much." As I have stated previously on different posts NZ has missed a real opportunity to reset its calendar and if it is to happen next season it is unlikely to happen with the current executive who have been in their positions of power far too long. Meanwhile below is a cut and paste excerpt from a Racing Post article in UK which puts another layer of worrying trends negatively impacting turnover. Racing's leadership has claimed the affordability checks already implemented by bookmakers have massively impacted online betting turnover and estimated the government's new policies could wipe a further £250 million from the sport's revenues over the next five years. Black added: "Of course there has to be social responsibility, but if it becomes an encumbrance on the innocent individual then you're just going to stop them from betting with all the red tape you put in their way. You'll irritate them and they'll stop, and change their habits as a result because no punter likes unnecessary form-filling and red tape, that drives people away. "The Gambling Commission knows that, they have to know that, so they know they'll annoy the hell out of a lot of perfectly innocent and responsible punters and as a result the industry will lose their business. That's going to be very damaging and they must know that. 1 Quote Link to comment Share on other sites More sharing options...
The Centaur Posted August 30, 2024 Share Posted August 30, 2024 In NZ there would appear far too many employed by the governing and wagering bodies doing bugger all. That includes the judicial. For instance what have the racing admin staff been doing at Ellerslie when there has been no racing. I get the impression NZTR are running scared of employment contract payouts when wishing to terminate employment. There are too many bookies in Australia. Its killed racing in the UK and will do so in Australia. AS for the so called "World Pool" all I can see is its an avenue for bookies to lay off. 1 Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted August 30, 2024 Author Share Posted August 30, 2024 1 hour ago, The Centaur said: AS for the so called "World Pool" all I can see is its an avenue for bookies to lay off. Better than them laying off on the local pool! Quote Link to comment Share on other sites More sharing options...
Chief Stipe Posted August 30, 2024 Author Share Posted August 30, 2024 18 hours ago, Wingman said: The last sentence is a telling statement;i,e "We simply race too much." 20 Thoroughbred Meetings in OZ today. Quote Link to comment Share on other sites More sharing options...
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