🔒 🔒 PM prepares to move on inducements as racing industry presses case for status quo

With Prime Minister Anthony Albanese set to act on the use of generosities by bookmakers, the racing industry is continuing to push its message to Canberra around the unintended consequences of any ban.

A trio of high-powered racing executives, Paul Eriksson (Racing Australia), Aaron Morrison (Racing Victoria) and Graeme Hinton (Racing NSW), as well as the chief executive of Thoroughbred Breeders Australia Andrew Hore-Lacy, appeared before a Senate Committee hearing last week, and highlighted the potential damage a ban on generosities might do to the racing industry.

However, after other evidence at the Senate hearing, there have been increasing calls for the federal government to act in either banning or heavily regulating what have been termed inducements, led by opposition Communications spokesman Sarah Henderson.

Albanese met with opposition leader Angus Taylor on Monday to thrash out several key policy matters as parliament resumes on Tuesday and gambling reform was on the agenda.

In an address to the Labor caucus on Monday, the Prime Minister said that he expected revised legislation to be presented this week.

“As a result of the work that we did at the National Conference, when it comes to the gambling legislation, further work and amendments will be carried, with bipartisan support, about inducements,” he said.

“We are making sure that those issues are dealt with in a constructive way, making sure that we get the balance right between people who want to go along and have a punt on a Saturday at the races. But also, that problem gambling is actually dealt with.”

“This will be the strongest anti-gambling legislation that Australia has ever seen, building on the previous ones, which were also by our Government.

“I’m confident that later in the week we’ll have the legislation, the House of Representatives, with some really practical amendments dealing with the targeting of advertising, dealing with reducing children’s exposure and dealing with as well, the full suite of measures in a really practical way.”

The details of any restrictions on inducements, or generosities as the industry calls them, will be closely monitored by both the wagering and racing industries. Inducements have usually been the domain of the states to regulate.

The Straight understands that Australia’s racing industry has continued to press its case around the use of generosities, which make up around 30 per cent of revenue.

Racing Victoria, Racing NSW and Racing Australia have remained in contact on the issue over the past week, with Morrison sending a warning during the Victorian Racing Awards on Saturday night as to the possible consequences of a ban.

“It’s important the policy makers understand what’s at stake here for racing,” Morrison said.

“Around 85 per cent of racing’s funding comes from wagering-related revenue. Racing is not able to simply replace that income if it disappears.

“If funding falls materially, difficult decisions will have to be made around investment, infrastructure, returns to participants and stakeholders and racing activity.”

Morrison warned that “real people, real jobs, real livelihoods and real community impacts” will be felt if there was a ban on generosities.

“If these changes significantly reduce wagering revenue, the risk of country racecourse closures becomes very real. Nobody wants that outcome, least of all us, but we need to be honest about the consequences of taking more funding out of the system,” he said.

The racing industry has been speaking to politicians of all persuasions over recent days, highlighting the impacts of a sharp change in the legislative path.

The government could possibly look to give racing a similar carve-out on inducements as it has with advertising, but that is considered an unlikely outcome.

What is more likely is stronger regulation on the use of advertising to promote generosities, with a possible focus on SMS messaging.