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Annual Report Contents 2019 ANNUAL REPORT CONTENTS Victorian Thoroughbred Racing by the Numbers 4 Chairman’s Report 6 CEO Report 8 Member Stakeholders 10 Strategic Framework 11 Racing and Programming 12 Racing Snapshot 15 Prizemoney 18 Owners and Breeders 19 Participants 20 Equine Welfare 22 Integrity 26 Infrastructure 30 Community 32 Diversity and Inclusion 34 Clubs 36 Wagering 39 Media 40 Racing.com 42 Investments and Industry Sustainability Fund 44 Directors’ Report 46 Lead Auditor’s Independence Declaration 56 Independent Auditor’s Report 57 Directors’ Declaration 60 Consolidated Statement of Surplus or Deficit and Other Comprehensive Income 61 Consolidated Statement of Financial Position 62 Consolidated Statement of Cash Flows 63 Consolidated Statement of Changes in Equity 64 Notes to the Financial Statements 65 Racing Victoria Limited ACN 096 917 930 Annual Report for the financial period ended 30 June 2019 Page 2 Racing Victoria 2019 Annual Report Racing Victoria 2019 Annual Report Page 3 VICTORIAN THOROUGHBRED RACING BY THE NUMBERS VICTORIAN THOROUGHBRED RACING BY THE NUMBERS $1.55B ECONOMIC BENEFIT IN REGIONAL AREAS 71,388 1.38M $ ATTENDEES OWNERS 3.20B $ ECONOMIC IMPACT M+ 3,518 INDUSTRY50 SPEND PER ANNUM ON 25,157 INFRASTRUCTURE FULL TIME STABLE EQUIVALENT JOBS EMPLOYEES $7.02 B TOTAL WAGERING CHANNEL 7 TURNOVER AUDIENCE 548 M OVER THE RACE MEETINGS 4.23 VIEWERS 2018 SPRING RACING CARNIVAL $ 294 762M 67 JOCKEYS RACETRACKS 8,808 994 ECONOMIC BENEFIT INDIVIDUAL COMPETING HORSES TRAINERS Page 4 Racing Victoria 2019 Annual Report Racing Victoria 2019 Annual Report Page 5 CHAIRMAN’S REPORT CHAIRMAN’S REPORT I commend to you Racing Victoria’s 2019 Annual In mid-2019, we were pleased to endorse a new We are fortunate to have a Minister for Racing in Report which provides a detailed overview of our three-year Equine Welfare Strategic Plan and Martin Pakula who is a passionate advocate for performance across the 12 months ending 30 June subsequent to the end of the financial year to racing and committed to its sustained success and 2019 and more broadly the health of the Victorian commit to a minimum $25 million spend across we thank him for his ongoing support. thoroughbred racing industry. three years to accelerate its implementation. Our achievements over the past 12 months would This report details another strong financial Based on the level of support we have received not have been possible without the valuable performance in a year in which we offered record both within and outside the racing industry since commitment that each and every participant prizemoney and delivered targeted industry announcing our commitment, I am confident that makes, and I want to thank them for their passion investments to grow the sport and ensure safe and together we can deliver the highest levels of care and dedication. competitive racing. to our horses before, during and after racing. The horses are the heroes of our sport and we must On behalf of the Board, I also want to thank our Over the past 12 months, the Board has been treat them as such. Chief Executive Giles Thompson, his executive team focused on continuing to deliver improvements and all the staff who have worked tirelessly in the in the areas of integrity, equine welfare and During 2018-19, participation within Victorian racing best interests of the industry throughout the year. participant wellbeing. remained exceptional with nation-high attendances, ownership, wagering and international competition The thoroughbred racing industry is a valuable An integrity services review completed in the first recorded. contributor to the state of Victoria delivering over Brian Kruger half of the financial year laid the foundation for $3.2 billion in annual economic benefit and the Chairman resourcing and technology advancements to ensure In addition, we were able to reward our participants equivalent of 25,000 full-time jobs. that we remained best equipped to deliver a level with significant prizemoney increases and continue playing field for all. to offer the highest average prizemoney per race in As well as the economic benefits, racing remains an Australia. integral component of our social fabric, particularly In addition, the Board led a project to review culture throughout country Victoria where it continues to and behaviours within the sport and to consider A bold and diverse footprint remains important to unite communities and support local businesses additional changes in policies and practices that our future in Victoria, which is why we were also and associations. would assist in the prevention of integrity breaches. pleased to increase prizemoney for every Country Cup across the 2018-19 racing season. As an industry, we are likely to face a number of Known as Fair Racing For All, the project engaged challenges in the 12 months ahead, be it delivering a broad range of stakeholders, both within and On the racetrack, Winx’s historic fourth Cox Plate ongoing improvements in equine and participant outside racing, to ultimately deliver a series of win and Godolphin’s breakthrough victory in the welfare and integrity reforms; or responding recommendations aimed at promoting a culture Melbourne Cup with Cross Counter after more than to a very dynamic wagering market and other of fair play and ethical behaviours. 25 years of trying were standouts. The performance competitive pressures. of Linda Meech to become the first female rider to We are working to implement many of these claim the Victorian jockeys’ premiership was equally The engagement of current and future generations recommendations, which include enhanced special. of racing fans is a key to our ongoing viability and licensing standards and compulsory professional the manner in which we address integrity, equine development, for the next licensing period Maintaining our national primacy is a focus for the welfare and participant wellbeing will be pivotal to commencing mid-2020. Board and also the Victorian Government and I us remaining an entertainment and employment want to take this opportunity to acknowledge the option of choice. Leading the Fair Racing For All project was our Government for their continued assistance. Director and wonderful friend Michael Andrew AO, I can assure you that the Board, management and whom we tragically lost to illness in June. Michael That assistance comes through the Victorian staff at Racing Victoria will do our best to deal with was an incredibly hard-working, passionate and Racing Industry Fund, which has facilitated many those challenges and maintain Victoria’s position as astute member of the Board, who was deeply key programs, infrastructure upgrades and events one of the leading racing jurisdictions in the world, committed to improving the integrity of the sport. across the state this past year, as well as supporting both on and off the track. the delivery of our prizemoney increases. We know that Michael’s legacy will, among other things, live on in the benefits that the Fair Racing For All recommendations deliver in enhancing integrity, culture and behaviours in our sport for future generations. Page 6 Racing Victoria 2019 Annual Report Racing Victoria 2019 Annual Report Page 7 CEO REPORT CEO REPORT It is with pleasure that I provide an overview of the A $17.5 million investment was also announced Whilst there has been much to celebrate across the performance of Racing Victoria and the Victorian in FY19 by the State Government to create new past 12 months, there remains increasing pressure thoroughbred racing industry in the 2018-19 facilities at regional training centres as part of a on all industry stakeholders to deliver the highest financial year (FY19). $40.1 million joint funding package that will support standards of integrity and equine welfare. the relocation of Caulfield trainers by the end of In summary, Victorian thoroughbred racing has 2023. To that end, we were pleased to work with the State worked hard to maintain its customer engagement, Government across FY19 in developing the Victorian while delivering record prizemoney returns for There was a continuing focus in FY19 on participant Racing Integrity Board and Victorian Racing Tribunal participants and a strong surplus for the seventh support with $25.6 million – up 1.7% – directed which both took effect in August 2019. consecutive year. towards jockey ride fees, jockey WorkCover, workforce development and welfare initiatives. Implementing the recommendations of our Fair We achieved a net surplus of $8.8 million for FY19 Racing For All project and an accelerated Equine while facilitating a significant targeted increase in The core racing product was well received by Welfare Strategic Plan will be a focus of FY20, as expenditure across prizemoney, infrastructure, risk punters with customers driving turnover on will monitoring an evolving wagering market. management and club funding. Victorian racing to a record $7.02 billion, a 9.4% increase on the previous year. The Point of Consumption Tax introduced on 1 We have also sustained a strong balance sheet, one January 2019 is starting to impact wagering on which ensures that we retain funds to safeguard Off the back of unparalleled promotions and Victorian racing as foreshadowed, which means the Giles Thompson the sport in the face of emerging challenges with generosities from Wagering Service Providers outcome of a legislated Government review in 2020 Chief Executive managed funds under investment growing to $81.4 (WSPs), wagering turnover increased across both will be critical. million at the conclusion of FY19. the 2018 Spring Racing Carnival (up 8.1%) and the 2019 Festival of Racing (up 12.2%). There is also much work to be done on our media Revenue grew by 8.8% to $465.5 million, driven and wagering frameworks with rights agreements principally by Government funding support for We were excited to launch Australia’s first fan-voted nearing their expiry and the Government embarking prizemoney increases which saw an additional race, The All-Star Mile, during the Festival of Racing on its process for the allocation of the post-2024 $23.8 million (+12.2%) paid out to a broad range of which, at $5 million, was the world’s richest mile race.
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