A bookie, a breeder and a business opportunity

When a bookmaker and a major breeding operation decided to go into business together, an alliance once thought improbable, it demonstrated that anything is possible with some creative thinking and enterprise.

While one’s fortunes may be linked tenuously to the success of another as wagering drives prize money, which in turn stimulates bloodstock prices and service fees, bookmakers and breeders have traditionally operated independently as different sectors of the same industry.

However, among the hundreds of millions of dollars swirling around Australasia’s annual yearling sales in 2024, the genesis of a partnership between wagering firm Entain and Henry Field’s Newgate Stud Farm moved into full stride at Easter.

As the blaze of publicity surrounding the $10 million sale of Winx’s daughter and the emergence of American investor John Stewart captivated the bloodstock scene, Entain and Newgate methodically went about adding to a joint bloodstock portfolio.

Together, they spent $2.425 million in Sydney as they targeted a selection of fillies, adding six yearlings to a partnership that had earlier made eight purchases from the Magic Millions, Karaka and Classic sales.

In total, the Entain-Newgate syndicate signed for $4.245 million worth of bloodstock this year in a strategy that appealed to Field’s sense of entrepreneurship.

Newgate is using a blueprint that has made its colts syndications model so successful in a bid to capitalise on a demand for high-quality race fillies and mares as breeding stock that shows no sign of slowing down.

“I think Australian broodmares have been undervalued for a long time compared to the rest of the world,” Field told The Straight.

“They are now starting to be valued in line with the rest of the world but they’re probably still good value in relative terms to the global market.

“We feel there is an opportunity in the fillies space to buy these nice quality horses to develop and resell them back into the broodmare market after hopefully enjoying their feats on the racetrack.”

The joint venture is a union that allows Newgate’s partners to race the fillies with Entain through an ownership experience framework created on a betting platform.

Established last year as the Ladbrokes Racing Club, Entain’s customers will complete a triumvirate between the bookmaker and the stud.

It has already enjoyed some racetrack success but investing in yearlings has taken the concept to another level.

“We feel there is an opportunity in the fillies space to buy these nice quality horses to develop and resell them back into the broodmare market.” – Henry Field

The Newgate-Entain partnership is a unique alliance in Australian racing and it speaks volumes for a willingness to innovate that a major breeding operation and a wagering provider can find a mutual ambition.

“We got chatting organically about ideas and this is the idea we came up with and I’m really glad we have,” Field said.

“The Ladbrokes Racing Club team are smart guys who are passionate about racing and we thought if we could work with them to broaden the ownership base in Australia and New Zealand, it was a task we wanted to take up.”

Newgate’s reputation has been crafted on a template of turning colts into commercial stallions but its success with fillies and mares – albeit from a small sample – shouldn’t be underestimated.

Field imported the Scat Daddy mare Con Te Partiro from the United States to win twice at Group 1 level in Australia. Initially purchased for $US575,000, she later sold for $US1.6 million at Keeneland.

Newgate also shared ownership of VRC Oaks winner Pinot before her sale to Japanese interests.

“We would have raced less than 10 fillies in the Newgate colours in recent years so it’s not something we have done very much of,” Field said.

Whether it’s buying a colt or a filly, Field says he is looking for one characteristic above all others that has served Newgate well.

“We were really focused on trying to buy fillies who are athletes. Pedigree was important but it was secondary to our decision-making,” he said.

“When we are buying colts it’s pretty much a certain type and we don’t compromise on that.

“And that’s how we feel with these fillies.

“When we are going back to sell broodmares – hopefully a number of black-type broodmares in a few years time – hopefully people will see the quality and types of mares that we will be offering to the market.”

Dan Cobby has worked for the ATC, as a race broadcaster, and in a role with champion trainer Chris Waller’s stable. He now handles the Ladbrokes team of thoroughbreds, pacers and greyhounds as Manager – Ownership & Participation at Entain.

“I guess partnering with someone like Newgate, it certainly opens up a few avenues,” he told The Straight.

Entain and Newgate opened their 2024 yearling account with a $300,000 daughter of Written Tycoon at the Magic Millions Gold Coast sale.

The shopping spree ended with a $520,000 filly by Exceedance, the last lot sold at Inglis’ Australian Easter Yearling Sale.

A $725,000 Farnan filly from Easter was the partnership’s most expensive purchase as a half-sister to Group 1-winning sprinter and Newgate stallion Wild Ruler and twice Group 1-placed Pavitra.

“You could say we went in there with twice the budget and that allowed us to buy more horses and allowed us to probably spread our horses across more trainers,” Cobby said.

Targeting well-bred fillies made good business sense for Entain on more than one level.

A residual value is assured at the end of their racing careers while offering a different way into the yearling market without trying to match Field’s buying power for blueblood colts.

“It safeguards us a little bit,” Cobby said. “We couldn’t really go in and buy colts against existing syndicates.

“Henry can now have a fillies syndicate business and still have his colts syndicate business that is able to sit separately.

“He gets a good spread (of horses) and we get to race with someone who is trusted and very well respected in the industry.

“It also gives him a chance to have first crack at putting them together as part of a mares draft – or potentially – by that point.”

Newgate has built a reputation as a pre-eminent consignor of quality mares. It has the biggest draft of any vendor at both the upcoming Inglis Chairman’s Sale and the Magic Millions National Broodmare Sale.

“Henry can now have a fillies syndicate business and still have his colts syndicate business that is able to sit separately.” – Dan Cobby

Entain has found that customers who might be considered rank-and-file followers of racing want to know more.

Instead of being on the outside looking in as a casual punter, they are curious to learn about the inner sanctum that belongs to high-profile trainers, elite jockeys, wealthy owners and their racehorses.

“I think we live in such a bubble in racing and we probably take it for granted that we’ve got access to leading trainers and jockeys,” Cobby said.

“But there are so many people interested in our sport that don’t know how to get into it and get that behind-the-scenes access.

“So this is the perfect platform for that.”

Sires of horses purchased by Entain for Ladbrokes/TAB Racing Club in 2024

Sire	Number
Proisir	3
Ardrossan	3
Toronado	2
Capitalist	2
Written Tycoon	2
So You Think	1
Savabeel	1
Russian Revolution	1
Per Incanto	1
Snitzel	1
Exceedance	1
Hello Youmzain	1
Farnan	1
Zousain	1
Blue Point	1
Pierro	1

Ladbrokes doesn’t offer direct or outright ownership like the typical syndication model that thrives in Australia.

But the bookmaker allows a customer to interact between its betting service and the club without leaving the Ladbrokes online platform.

Membership is optional but those who join can enter a ballot to enjoy the same racing experience as a registered owner.

“The biggest thing for us is that we can have the mounting yard privileges as well as our (racing) colours displayed,” Cobby said.

As an extension of its New Zealand TAB deal, Entain is expanding the concept with the TAB Racing Club expected to be up and running in September.

It has earmarked at least eight of its yearling purchases from New Zealand to be part of that deal. Most of those have already been allotted to leading trainers.