Powerful racing industry group heads to Canberra as wagering reform debate intensifies

Australia’s three most prominent racing executives will speak before a Senate Committee into proposed amendments to the legislation governing wagering advertising next week as a submission made by Racing Australia warned of the threat posed by regulatory overreach.

The Environment and Communications Legislation Committee, which is chaired by Senator Varon Ghosh, will hold public hearings on Monday and Tuesday.

Racing Australia chief executive Paul Eriksson, Racing Victoria CEO Aaron Morrison and Racing NSW acting chief executive Graeme Hinton are set to answer questions at 2:15pm on Monday.

It follows a submission to the Committee from Eriksson which highlighted the industry’s concern about regulatory overreach.

He argued that racing and wagering are intrinsically linked, and the industry relies heavily on betting turnover to fund racing operations and participant returns, while warning that excessive restrictions could drive bettors to illegal offshore operators, reducing consumer protections and industry funding.

As well as stating the industry’s support for gambling reforms and stronger protections through BetStop and other consumer safeguards, Eriksson sought broader and clearer racing exemptions, particularly for digital platforms, streaming services, social media content and racing-related activities such as breeding and equine welfare.

It also calls for stronger action against illegal offshore gambling, including transaction blocking, improved enforcement and addressing VPN loopholes.

“The unintended consequences of well-intended Government regulation fuelling illegal black markets should not be underestimated,” Eriksson said.

“Any further expansion of the reforms, in particular the banning of generosities such as bonus bets, or further advertising restrictions will be catastrophic to the racing industry.”

“Racing is an adult focused, highly regulated product and wagering forms an intrinsic and unavoidable component of racing.”

Thoroughbred Breeders Australia also made a detailed submission and chief executive Andrew Hore-Lacy will speak during the same session as the racing executives.

In its submission, TBA said it supports the bill as introduced and urged federal lawmakers to preserve racing-specific provisions.

Among TBA’s submission was a call to ensure racing-related exemptions are maintained and extended to cover breeding, bloodstock and ownership content and that regulator ACMA publishes practical guidelines clarifying the exemptions. TBA also supported the strengthening of enforcement against illegal and unlicensed gambling services.

“TBA supports proportionate and evidence-based measures to reduce gambling harm across all forms of gambling, including wagering, poker machines, lotteries, illegal offshore services and online casino-style products,” the submission said.

“The Bill appropriately recognises that wagering occupies a different position within racing than it does within most other sports.”

TBA said that racing is not merely a recipient of wagering sponsorship, but that revenue generated through licensed wagering supports the racing product itself and flows through prize money, ownership and breeding incentives, employment and investment across regional Australia.

“The consequences of changes to that system will not end with wagering operators or race clubs. They will ultimately influence the confidence of owners and breeders, the size and quality of future foal crops, regional employment and Australia’s international standing as a leading Thoroughbred-producing nation,” it said.

“TBA therefore asks the Committee to support the Bill as introduced and preserve its racing specific provisions.

“Before there is a race, there is a breeder. The decisions those breeders make today will determine the racing industry Australia has in the years ahead.”

The first day of the hearing also includes gambling harm reduction advocates as well as public health officials and representatives of The Lottery Office.

Day two features representatives from two of Australia’s biggest bookmakers, Sportsbet and Tabcorp, as well as Responsible Wagering Australia CEO Kai Cantwell. That session also includes representatives from free-to-air TV, the regulator ACMA and lottery executives.