Stagnant racing attendances and a rising interest in alternative forms of gambling have affected the industry over the past five years
Melbourne, Australia (PRWEB) October 28, 2014
Horse and Dog Racing are fixtures of Australia's sporting culture. Horseracing is the only sport that warrants public holidays in various states, culminating in November's Melbourne Cup, the jewel of a $1.5 billion industry. However, industry participants have faced an array of challenges over the past five years. In August 2007, equine influenza (EI) threatened thoroughbred horseracing in Queensland and New South Wales, where several races were called off due to heavy quarantine restrictions. Although EI occurred outside the current five-year period, its after-effects have had a lasting impact on the industry. According to IBISWorld industry analyst Spencer Little, “stagnant racing attendances and a rising interest in alternative forms of gambling have affected the industry over the past five years.” Racegoers have tended to splash out at marquee events during the Melbourne Spring Racing Carnival, such as the Melbourne Cup. This has limited ticket sales and revenue for non-event based thoroughbred, harness and greyhound races.
The increasing popularity of sports betting through accessible online platforms has reduced the share of gambling expenditure on racing, and restricted a key revenue source for racing authorities and race clubs. These effects have culminated in industry revenue declining at compound annual rate of 4.1% over the past five years. Revenue is estimated to fall by 4.8% in 2014-15, to reach $1.5 billion. Although these challenges are set to remain prevalent over the next five years, the industry's performance is expected to improve slightly. Despite access to corporate bookmakers' racing turnover, revenue from gambling activities is anticipated to be limited, as gambling expenditure reaches saturation and gamblers shift to placing wagers on sports matches and other events. This trend, coupled with falling thoroughbred, harness and greyhound racing attendances, is likely to contribute to the industry's decline over the next five years. “Projected consolidation is expected to force smaller and less profitable participants to exit the industry over this period,” says Little.
The Horse and Dog Racing industry displays a low level of market share concentration. The size of industry participants can vary significantly depending on their main operations. The industry's largest players are principal racing authorities and large race clubs. However, other racetrack and race club owners, particularly in small country towns and regions with smaller populations, typically generate far less revenue than these major players. Racing groups vary greatly in size, from the larger metropolitan clubs to the picnic race clubs and tracks that only hold one or two meetings per year and operate on a voluntary basis. Over the past five years, market share concentration has increased due to the consolidation of the industry's major racing authorities.
For more information, visit IBISWorld’s Horse and Dog Racing industry in Australia report page.
Companies in the industry mainly administer horse and dog racing activities, or operate horse and dog racing venues. Firms that mainly operate horseracing stables or dog racing kennels, own racehorses or greyhounds, or provide related training services are also included in the industry.
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