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Annual Report 2020 1 ANNUAL REPORT ANNUAL Image: Magic Millions Barrier Draw 2020 Annual Report 2020 Annual Report Racing and Wagering Western Australia

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Annual Report 2020 1 ANNUAL REPORT ANNUAL Image: Magic Millions Barrier Draw 2020 Annual Report 2020 Annual Report Racing and Wagering Western Australia Annual Report 2020 Racing and Wagering Western Australia 1 ANNUAL REPORT Image: Magic Millions Barrier Draw 2020 Annual Report 2020 Racing and Wagering Western Australia Statement of Compliance For the year ended 31 July 2020 The Hon. Paul Papalia CSC, MLA; Minister for Tourism; Racing and Gaming; Small Business; Defence Issues; Citizenship and Multicultural Interests. In accordance with Section 61 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament, the Annual Report of Racing and Wagering Western Australia for the financial year ended 31 July 2020. The annual report has been prepared in accordance with the provisions of the Financial Management Act 2006 and the Racing and Wagering Western Australia Act 2003. 4 5 Annual Report 2020 Racing and Wagering Western Australia Chapter 1: Overview Contents Chapter 1: Overview About Us 1 2020 Key Performance Highlights 3 Chair and CEO Report 6 Operational Structure 11 Racing and Wagering Western Australia Board 13 Board Committees 14 Chapter 2: Report on Operations Wagering 18 Racing 22 Welfare 32 Racing Integrity 41 Corporate Social Responsibility 47 People and Culture 50 Chapter 3: Disclosures and Legal Compliance Opinion of the Auditor General 53 Certification of Financial Statements 57 Financial Statements Statement of Comprehensive Income 58 Statement of Financial Position 59 Statement of Changes in Equity 60 Statement of Cash Flows 61 Notes to and Forming Part of the Financial Statements 62 Certification of Key Performance Indicators 108 Performance Management Framework 109 Key Performance Indicators 110 Other Financial Disclosures 114 Governance Disclosures 117 Other Legal Requirements 119 Government Policy Requirements 120 Image: WA Fashions on the Field Campaign Image: Gloucester Park 6 7 Annual Report 2020 Racing and Wagering Western Australia About Us Racing and Wagering Western Australia (RWWA) was established on 1 August 2003. RWWA’s Charter under the Racing and Wagering Western Australia Act 2003 is to foster development, promote the welfare and ensure the FOCUS AREAS integrity of metropolitan and country thoroughbred, harness and greyhound racing in the interests of the long- GOALS term viability of the racing industry in Western Australia. RWWA also has responsibility for the off-course wagering functions trading as the TAB. 1 Overview Business Our Brands • Maximising wagering revenue RWWA maintains a strong emphasis on the following strategic focus areas in the context of achievement of • Grow returns to Western Australian the organisation’s stated purpose, vision and values: racing industry Customer Experience • Increase the relevance of racing in Create and lead the best customer experience for Western Australia 2 wagering and racing customers. Operations Report on • Uphold the highest standard of animal welfare Employee Experience Continue to improve staff engagement and build a • Strengthen the integrity of racing in high performing workforce. Western Australia 3 Ways of Working Legal Compliance and Disclosures • Enhance employee experience Develop new ways of working to be more competitive and efficient in the marketplace. FOCUS AREAS PURPOSE VISION VALUES To provide a sustainable To be a national leader Enthusiasm and Pride future for the Western in racing and wagering Achievement ‘Real’ationships Australian racing industry entertainment Team Play Honesty Image: Northam Race Club 1 2 Annual Report 2020 Racing and Wagering Western Australia FY2020 Key Performance Highlights Corporate Social People and Wagering Racing Integrity Welfare Responsibility Culture 1 • Employee Onboarding Overview Business • $3.2B in turnover • $1.3M invested in • 304 greyhounds • $233K in funding • Highest recorded level prohibited substance adopted through provided to overall satisfaction of active accounts from all national score 100% (18% control GAP (49% increase community groups outside of Melbourne wagering operators increase on FY2019) on WA racing on FY2019) through Community Cup week - 53,000 TAB (July 2020) • 8,753 individual • 18 employees • $163.3M in funding horse and greyhound • 26 greyhounds swabs collected adopted through • More than completed RWWA’s • Achieved highest to WA racing Emerging Leaders 2 industry the Greyhound $107K raised for Operations Report on recorded TABtouch Injury Full Recovery community groups Program • 99.8% of swabs Net Promoter Score of Scheme through Community 54 (July 2020) were negative • $12.2M increase in TAB Race Club • 89% attendance rate racefield revenue Community Program • Zero greyhounds at wellness activities, • Maintained 39% euthanised as not comprising 21 events digital wagering • $15.8M in RWWA suitable for racing and 1,781 participants 3 market share through grants and club Legal Compliance and Disclosures COVID-19 subsidies • 99.8% of greyhound • Permanent employee starters not affected turnover 8.4% • 17% increase in • 854 race meetings by serious injury (national average 18% customers using and 7,946 turnover) mobile devices to individual races wager • 122 events sponsored through • Employee experience Off the Track engagement score • Gross margin grew by WA, with 2,773 72%, surpassing KPI 1.5% on previous year retired racehorses target despite COVID-19 participating • Opened six new PubTABs within licensed venues 3 4 Image: 2020 SKY Racing Perth Cup Annual Report 2020 Racing and Wagering Western Australia Chair and CEO Report Introduction It is our pleasure to present the 2020 Annual Report for Racing associated breeding bonuses by 20 per cent, in addition to and Wagering Western Australia (RWWA). Since its inception reductions in its own cost base. in 2003, RWWA has been the principal racing authority for thoroughbred, harness and greyhound racing in Western RWWA’s cost mitigating measures, along with the robust Australia together with being the operator of the TAB. During recovery of the Western Australian TAB business with the this time RWWA has increased annual funding to the Western re-opening of the retail network, and strong receipts from the Australian racing industry from $63.3 million to $163.3 million Racing Bets Levy, enabled RWWA to return stakes and bonuses 1 Overview Business in FY2020. to their full pre-COVID-19 levels within just four months. The Western Australian racing industry continues to provide Financial Performance important economic and social benefits to the State. Overall, the State’s racing industry generates more than $821 million In order to ensure a sustainable future for the Western in economic contribution to Western Australia each year, and Australian racing industry, RWWA continues to develop sustains more than 7,360 full-time-equivalent jobs1. strategies and new ways of working to be more competitive in 2 the national wagering market. Operations Report on RWWA commenced the year with a positive outlook for the Western Australian racing industry, with key focus areas FY2020 delivered a solid performance with overall revenue including increases in prizemoney and breeding bonuses, from all sources up by $20.5 million, resulting in a total ownership and racing marketing initiatives, as well as the of $450.2 million comprised of $310.2 million from TAB introduction of seven day racing for the greyhound code. wagering, $93.2 million from the Western Australian Racing 3 Bets Levy and $46.8 million from other items. The significant Legal Compliance and Disclosures During FY2020, RWWA delivered a dual purpose in ensuring increase in revenue was once again driven by growth in that it continued to provide its critical services to the income generated by the Western Australian Racing Bets Western Australian racing industry, as well as support the Levy, which was up by 15 per cent or $12.2 million, growing State Government in its efforts with the sale of the Western from $81.0 million to $93.2 million in FY2020 (see Note 8.9 Australian TAB. Negotiations of the sale were well progressed, in Financial Statements: Grants and Subsidies from State with a preferred bidder selected. However due to the ongoing Government). uncertainty surrounding the impacts of COVID-19, all parties agreed to disengage from the process until further notice. The Western Australian Racing Bets Levy is paid by wagering operators who conduct betting on Western Australian racing. RWWA and the Western Australian racing industry responded The levy is revenue paid to RWWA, but is treated as income well to the impacts of COVID-19 and were successful in from the State Government because RWWA operates as implementing effective bio-security measures to ensure the both the principal racing authority and is the operator of the continuation of racing. This included restricting racecourses Western Australian TAB. It should be noted that a portion to essential persons only, consolidation of race meetings of the $12.2 million increase is a result of the COVID-19 to reduce unnecessary travel, hygiene and social distancing pandemic, due to comparative wagering products including a practices implemented on-course and team segregation majority of national and international sports and international among many other strict bio-security measures. racing being unavailable from March to July 2020. This left the Western Australian product with reduced wagering However, RWWA’s wagering business was impacted by competition during the period resulting in a favourable COVID-19, with Government restrictions resulting in the increase in national wagering market share. closure of the retail network,
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