Australian racing in same dilemma as Hong Kong, says Read


The following story about the dilemma facing Hong Kong Racing, by Murray Bell, is reproduced by permission of the South China Morning Post.
IAS Chairman, Mark Read, says the comments by Hong Kong Jockey Club executive director, Winfried Engelbrecht-Bresges, about the beak future of Hong Kong racing unless changes are made, are very pertinent to Australia.
Read says that in the last 20 years racing has gone from being the predominant gambling medium to now having less than a 10 percent share of the Australian gambling market because TAB deduction rates make racing too expensive and relatively unattractive.
Read says that the initial legislated maximum deduction rates of 16% made allowance to pay for massive infrastructure, TAB betting shops and staffing.
“However, pubs and clubs now provide the majority of outlets and the staffing, so these cost cuts should be passed onto the customer in the form of reduced totalisator deductions,” Read said.
“The use of the internet has also reduced costs substantially, but again, the benefit of these reductions are not being passed onto consumers.
“Governments, too, have their hands out all the time for a slice of racing action and they must realise that they will kill the golden goose if they continue unabated.”
He said Mr Winfried Engelbrecht-Bresges could well be talking about the future of Australian racing, so similar is the situation.