Falling attendance and tighter regulations threaten revenue growth
Melbourne, Australia (PRWEB) September 02, 2012
Horse racing and greyhound racing have been fixtures of Australian sporting culture for a long time. However, the Horse and Dog Racing industry in Australia is facing some trouble. In 2007, equine influenza (EI) hammered horse racing in Queensland and New South Wales, where a number of races were called off due to heavy quarantine restrictions. According to IBISWorld industry analyst Craig Shulman, “this halted the entire spring racing carnival in these regions, which was devastating for several industry participants”. After months on the sidelines, the Horse and Dog Racing industry in Australia returned to normal. By March 2008 Australia was declared EI-free and the industry began to recover. Although this remains the case, the industry will still feel the effects of EI, with tighter government restrictions resulting in fewer quality horses entering Australia, thus affecting betting revenue and attendance figures.
Growth for the Horse and Dog Racing industry in Australia has been constrained by the economic slowdown of 2008-09, which resulted in tighter spending patterns by Australian consumers. The slow recovery has led the industry to grow by an annualised 3.2% over the five years through 2012-13. Industry revenue is expected to increase by 2.1% in the current year. Shulman adds, “compounding the industry's woes is the debate regarding the fate of jumps racing”. Steeplechase horses have a high rate of injury (at which point many are put down) and there is a strong moral push against it.
Over the next five years, revenue is expected to decline due to the decreasing popularity of race wagering and consequently the sport overall. The top four companies in this industry are Racing Victoria, Australian Turf Club, Victoria Racing Club, and Racing and Wagering Western Australia. Moves towards greater prevalence of major events are raising the level of market share concentration. In terms of prize money, the industry is dominated in the training area by a few professional trainers. Most trainers receive little or no prize money. In the clubs area, the Principal Racing Clubs and control organisations set the rules and regulations for racing in the state in which they are located.
For more information, visit IBISWorld’s H orse and Dog Racing report in Australia industry page.
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IBISWorld industry Report Key Topics
Horse and dog racing operators run racing and training facilities. Horse racing includes racing horses that are ridden or pull a vehicle. Breeding, wagering and other ancillary services are not included in this report.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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