2011 Annual Report VISION Provide a committed, user-friendly, professional and cost effective administration which uses best business practice in serving all aspects of the NSW Thoroughbred Racing Industry. Provide Leadership and Strategic Direction to ensure the NSW Thoroughbred Racing Industry achieves revenue growth, profitability and greater returns to Owners and Industry Participants. Provide a Racing product which appeals to all demographics, and takes all actions necessary to guarantee integrity and confidence in the sport. Maximise betting turnover on NSW Thoroughbred meetings by accommodating punters’ needs and desires, and work with Tabcorp to promote new wagering products, which reflect changes in demand. CONTENTS Chairman’s Report 2 Chief Executive’s Report 3 Industry 8 Regulatory 11 Integrity 18 Veterinary Services 20 Laboratory 22 BOBS 24 Industry Training 26 Appeals 28 Marketing & PR 30 Insurance 32 NSW Group & Listed Winners 36 Annual Trends 35 Financial Statements 38 Front cover: Sydney’s champions for the 2010/11 racing season – Chris Waller, Josh Adams, Nash Rawiller, More Joyous MISSION STATEMENT To establish a dynamic NSW Thoroughbred Racing Industry which advances participation, ensures integrity and delivers quality racing at all levels. MEMBERS OF THE BOARD A R Bell (Alan) A F Brown (Alan) K M Brown AM (Ken) Chairman Deputy Chairman Appointed 19 December 2008 Appointed 19 December 2008 Appointed 19 December 2008 Attended 10 meetings Attended 12 meetings Attended 12 meetings P N V’landys (Peter) K E Harding (Kim) A A Inglis (Arthur) Racing NSW Chief Executive Appointed 19 December2008 Reappointed 19 December 2010 Appointed 23 February 2004 Attended 12 meetings Attended 12 meetings Attended 12 meetings FUNCTIONS OF THE BOARD Under section 13 (1) of the Thoroughbred Racing Act (NSW) 1996, the Board has the following functions: a. all the functions of the principal club for New South Wales d. functions with respect to the insuring of participants and committee of the principal club for New South Wales in the horse racing industry, being functions of the under the Australian Rules of Racing, kind exercised by the AJC on the commencement of this section, and such other functions with respect to b. to control, supervise and regulate horse racing in the State, insurance in the horse racing industry as may be prescribed by the regulations, Such functions in relation to the business, economic development and strategic development of the horse e. such functions as may be conferred or imposed on Racing racing industry in the State as are conferred or imposed by NSW by or under the Australian Rules of Racing or any this Act, other Act, c. to initiate, develop and implement policies considered f. such functions with respect to horse racing in New South conducive to the promotion, strategic development and Wales as may be prescribed by the regulations. welfare of the horse racing industry in the State and the protection of the public interest as it relates to the horse racing industry, CHAIRMAN’S REPORT Alan Bell Chairman The Hon. George Souris MP matters will be accorded high priority during the 2011/12 financial year Minister for Tourism Major Events Hospitality and Racing, and the Board has developed a comprehensive Operational Plan for and Minister for the Arts the foreshadowed implementation of the Strategic Plan. Level 30, Governor Macquarie Tower 1 Farrer Place No doubt one of the highlights of the year was the successful Sydney NSW 2000 merger of the Australian Jockey Club and the Sydney Turf Club and the consequent formation of the Australian Turf Club under the Dear Minister Australian Jockey and Sydney Turf Clubs Merger Act 2010. As a result of funding secured from Tabcorp and the NSW Government, In accordance with Section 29 of the Thoroughbred Racing Act 1996 the new Club is about to embark on a major capital development (the Act) I am pleased to submit to you the 15th Annual Report of program at its Randwick and Rosehill Racecourses which will see Racing NSW for the period 1 July 2010 to 30 June 2011. the racegoers in Sydney enjoy world class facilities and experiences. Firstly, please accept our Board’s congratulations on your Racing NSW is looking forward to working closely with the Club to appointment as Minister for Racing. We are looking forward to capitalise on the huge opportunities which have come our way as a working with you over the coming years towards ensuring the result of the funding arrangements for the capital works. financial well-being of the NSW Thoroughbred Racing Industry. As required under the Act, the Board has continued to hold meetings Our Board met on 12 occasions in this reporting period. The with the Racing Industry Consultative Group (RICG). The advice contribution of my fellow Board members, whose dedication, provided by that body has been both welcome and appreciated. The expertise and detailed knowledge of the inner-workings of the counsel of RICG has ensured that Racing NSW develops its policies to industry proved invaluable, enabled Racing NSW to deliver on its best suit the needs of the industry and its participants. obligations and responsibilities under the Act. During the year Racing NSW hosted the 2nd Annual Australian In July 2011 the Board resolved to change office bearers whereupon Racing Conference in Sydney during April 2011. In all, 234 delegates I was appointed Chairman and the former Chairman Alan Brown from Race Clubs and controlling Authorities from around Australia assumed the role of Deputy Chairman. The Board expresses its and New Zealand attended. The theme of the conference was appreciation to Alan for his efforts on behalf of the industry during the “Racing for Change” and included addresses on a wide array of formative years of the newly restructured Board. important topics by an exceptional panel of speakers from the wider corporate world. During 2009/10 we released our Strategic Plan for the NSW Thoroughbred Racing Industry, setting out our vision for the industry Finally, on behalf of the Board and myself I thank and acknowledge the over the next three years. Full implementation of this plan has been Chief Executive, Peter V’landys, and the entire staff of Racing NSW for delayed pending the outcome of the High Court proceedings currently their dedication and achievements during the year. being determined by the High Court of Australia. In particular, their outstanding efforts during negotiations to secure In that regard, Racing NSW is a Respondent to two Appeals to the abovementioned funding from Government and Tabcorp and in the High Court by appellants Betfair and Sportsbet against the their tenacious defence of the Race Fields Legislation in the Federal unanimous judgments in favour of Racing NSW delivered by the Full and High Court Appeals brought credit to everyone who serves on Court (Chief Justice Keane, Justice Buchanan and Justice Lander) Racing NSW. of the Federal Court on 17 November 2011. Those Appeals were to be heard by the High Court from 30 August 2011 to 1 September 2011; In closing I would particularly like to thank you, your staff and your their outcome will have a significant bearing on the future funding of Departmental Officers for your assistance and support during the year. the NSW Thoroughbred Racing Industry. With the Appeals pending, it has not been possible to finalise a review Yours Sincerely of the NSW industry’s Intra-Code Agreement. These outstanding Alan Bell 2 Racing NSW Annual Report 2011 CHIEF EXECUTIVE’S REPORT Peter V’landys Chief Executive 2010/11 was another year of achievement for the NSW record year for Racing NSW’s Breeder Owner Bonus Scheme Thoroughbred Racing Industry. We celebrated the bi-centenary (BOBS). Total bonuses paid to winning owners including BOBS of the commencement of racing in Sydney (and Australia) and Double Up were in excess of $9.8 million, with BOBS continuing to saw the realisation of the historic merger between the Australian be the most lucrative of any Australian State bonus scheme. Jockey Club and the Sydney Turf Club to form the Australian Turf Club. The year also saw the Full Court of the Federal Court BETFAIR AND SPORTSBET COURT unanimously rule in favour of Racing NSW by dismissing the legal PROCEEDINGS challenges by wagering operators Sportsbet and Betfair against Betfair and Sportsbet commenced Federal Court proceedings the payment of Race Field fees. in October and November 2008 respectively resisting payment In addition, Racing NSW was able to introduce or further of the fees imposed by Racing NSW under the Race Fields enhance a number of programs and initiatives which will provide Legislation on the basis that those fees discriminated against significant benefits for the NSW Thoroughbred Racing Industry. them as interstate operators. Complete details of the operations of Racing NSW are Betfair’s challenge was heard by Federal Court Justice Nye outlined later in this Report. However, I have identified the major Perram from 18 November 2009 to 1 December 2009. Sportsbet’s issues below. challenge was heard by Justice Perram from 4 February 2010 to 19 February 2010. OPERATING COSTS AND ADMINISTRATIVE Justice Perram delivered judgment in both matters on 16 CHARGE June 2010. Racing NSW will report an operating surplus before extraordinary Betfair’s challenge was dismissed and it was ordered to pay items of $1,602,776. Including extraordinary items the surplus Racing NSW’s costs. increases to $3,473,854. In the case of Sportsbet, Justice Perram upheld the validity The most pleasing aspect is that the first charge against the of the Race Fields Legislation and accepted that overcoming the TAB Distribution was $7,994,011 down $54,308 compared to issue of ‘free riders’ on the NSW Thoroughbred Racing Industry $8,048,325 in the previous year.