Racing’s economic impact beyond $1bn

The economic value Western Australia’s racing industry exceeded $1 billion in the 2021-22 financial year, up more than $330 million against pre-pandemic figures.

A report commissioned by Racing and Wagering Western Australia – the operator of the state-owned WA TAB – reported significant growth in the sector since a previous report assessing 2018-19, when the industry’s economic contribution was $970 million.

In 2021-22, racing generated $1.3 billion in value-added economic impact, reported off the back of $1.1 billion worth of direct spending across thoroughbred, harness and greyhound racing.

Direct spend came in at $870.3 million in 2018-19.

At $550 million, more than half the 2021-22 direct spend was attributed to racing club and industry spending, funded by wagering product fees, race day revenues, sponsorship and membership, non-race day revenues and nominations.

A further quarter - $281 million – was spent on other wagering operator expenditure, with breeding and training of racehorses and greyhounded attracting close to 22 per cent of spend at $241.1 million.

More than 46 per cent of the economic value was found to be generated in the regions, including Peel, second to Perth’s $725.4 million of economic impact at $228.1 million.

The Wheatbelt and South West were the next largest regions by measure of economic impact, both reported in excess of $90 million.

Racing and Wagering WA chief executive Ian Edwards said the report demonstrated the community value of the industry.

“The involvement of about 25,000 people in an industry worth well over $1 billion a year only shows part of the contribution racing brings to WA,” he said.

“Close to 50 per cent of the economic value is generated in regional parts of the state and flows back to those local communities.

“Many communities across WA depend on racing as a source of social connection as well as income, particularly in rural areas.”

More than 25,000 people were found to be involved in racing as participants, employees or volunteers, with direct and indirect employment at more than 10,000 in WA.

The report assesses a period in which the state explored selling the TAB into private hands, a move supported by Racing and Wagering WA.

In October last year, News Corp-backed Betr emerged as the front runner for the betting agency but backed out.

In December, the TAB sale was scrapped indefinitely to the disappointment of RWWA, which believed the sale and introduction of a new long-term funding model would be the best outcome in a competitive wagering environment.

RWWA reported wagering turnover of $4.2 billion during the financial year, comprising $392.8 million from the WA TAB; $829.1 million through interstate TABs and $297.5 million from WA residents through non-TAB service providers.

At close to $2.7 billion, more than half the wagering turnover came from interstate and overseas residents using non-TAB wagering service providers.

A total 885 race meetings were held across WA’s 50 racing clubs in 2021-22, for 8372 races.