Report finds racing industry contributes $80 million a year to ACT economy but Greens still want funding pulled

The Canberra thoroughbred racing industry contributed almost $80 million a year to the ACT economy, according to an independent report released as the ACT Greens again attempted in vain on Tuesday to amend the ACT Budget in the Legislative Assembly to axe public funding for race clubs.

The report by IER – a research company specialising in event, tourism and sporting industries – was commissioned by the industry in August 2023 as a requirement of the Memorandum of Understanding between the Canberra Racing Club, the Canberra Harness Racing Club and the ACT Government that provides for about $8 million a year in funding up to 2026-27.

It found the racing industry generated $79.2 million in 2022-23 – a tenfold return on public funding – and was responsible for about 500 full-time jobs, including 333 employed directly in the industry.

The Canberra Racing Club alone employs 20 full-time and part-time staff and a further 134 casual employees across the year, many on race days.

The racing industry spend in 2022-33 was $80.7 million – 28 per cent on training, much of which occurs at Thoroughbred Park, 12 per cent by the Canberra Racing Club and 60 per cent in gambling, including race fields licence revenues for the industry, taxes and advertising.

About 82 per cent of this was spent locally.

During the 2022-23 racing season, about 505 racehorses were trained in the ACT, with owners spending $22.6 million on the preparation of their horses for racing.

The report estimated that in 2022-23 racing customers – racegoers, sponsors, members, broadcast providers, community groups and participants – spent $16.3 million, excluding betting.

In 2022-23, the Canberra Racing Club took in $14.4 million – 38 per cent of which originated from outside the ACT, or $4.2 million. Overall, the club spent 41 per cent of its expenditure budget ($6.1 million) within the ACT economy, a number that is growing under a new strategy, the report says.

There were 25 scheduled race days held at Thoroughbred Park, with three cancelled due to bad weather, attracting a total attendance of 30,582.

More than 41,700 patrons attended various non-raceday functions and events at the venue.

Canberra Racing Club Chief Executive Darren Pearce said the club was a shopfront for a significant and hardworking industry that was bigger than some may realise.

“There is a significant multiplier effect from every horse stabled here at Thoroughbred Park,” he said.

“The other big multiplier is our events and hospitality business, which operates all year round.

“We are deeply connected to the Canberra community and contribute through employment, economic benefits, and the social and cultural fabric.”

Mr Pearce said the figures would be even better for 2023-24, with over 20,000 patrons welcomed across two weekends in March for the Canberra Festival of Speed and Black Opal Stakes Race Day.

“We are bigger than racing,” Mr Pearce said.

“The Festival of Speed is a wonderful example of our club’s efforts to diversify our business, add more value to the Canberra community and ultimately drive growth for the operating business.”

Canberra Racing Club is also looking to develop part of the course for housing with a master plan for 3200 multi-unit homes, including social and affordable housing, a hotel and aged-care facilities. New stables and training facilities would be established on the track infield and facilities for racegoers refreshed.

But the ACT Greens are promoting their own plans for a new suburb of 5000 homes to be built on the Thoroughbred Park site, in spite of their Labor partners in government assuring the club of its future in the ACT.

Greens MLA Jo Clay questioned the report’s findings and compared the $80 million figure with the $2.9 billion she said the ACT’s creative industries contributed to the local economy.

Ms Clay said the horse racing industry received more public money than the Canberra Raiders, ACT Brumbies, Canberra United and all community sports programs combined.

“The 2022-23 MOU provided $6.8 million of public funds to the Canberra Racing Club. That year, the Canberra Racing Club gave out $5.96 million in prize money and $976,000 in payments to key management personnel,” she said.

“It looks an awful lot like the public is funding horseracing prize money and CEO salaries.”

“This is just not OK, and the community will be rightly disappointed that both ACT Labor and the Canberra Liberals voted to continue this waste of public funds.”

But the Greens would not stop funding immediately, proposing a phase-out to minimise disruption, she said.