Racing SA records $3.26 million deficit, eyes return to surplus by 2027
Racing SA’s annual finances will remain in the red for at least another 12 months, with a $3.256 million deficit for last financial year to be followed by a budgeted $1 million loss this year and an intention to return to surplus in 2027.
Racing South Australia has posted a deficit of $3.26 million for the 2024/25 financial year, slightly more than its budgeted loss of $2.94 million, with an expectation of a further $1 million shortfall this year and plans to return to surplus in 2027.
In handing down the regulator’s annual report, chairman Rob Rorrison said $2.5 million in infrastructure grants to race clubs throughout the state accounted for most of the deficit.
“(Infrastructure) remains a cornerstone of Racing SA’s long-term visions,” Rorrison wrote.
“Our 10-year infrastructure plan and capital grants program are fundamental to the sustainability of racing across the State. The board of Racing SA has endorsed this long-term commitment.”
Racing SA reported that total revenue for FY2024/25 dropped 6.2 per cent from $96.7 million the previous year to $90.7 million.
Income from TAB product fees rose 3.3 per cent to $21.7 million but Betting Operation Contribution – a point of consumption paid by bookmakers – dropped 2.2 per cent from $50.1 million to $49.05 million. There was a samll decline in wagering turnover.
A State government industry grant dropped from $12.8 million to $9.5 million – a 25.9 per cent decrease year-on-year.
Revenue from vision, digital and international rights figured in an 8.1 per cent hit, down from $5.6 million in 2024 to $5.2 million in 2025.
A 2.1 per cent increase in expenses was attributed to direct industry funding, with prize money, club funding and capital grant programs all increasing year-on-year.
Jockey Workcover premiums rose by $650,000 year-on-year up to $2.9 million.
“More than 67 per cent of total revenue was returned as prize money, which continues to demonstrate efficient operations while delivering strong returns to participants,” chief executive Nick Bawdin said.
Racing SA distributed $64.1 million in prize money in past year, an almost 1 per cent increase on 2023/24, a return that accounted for more than 65 per cent of the regulator’s expenditure.
Bawdin said wagering turnover on SA racing compared favourably to the national trend, being down only 1.3 per cent year-on-year.
“This result reflects the strong confidence punters continue to have in South Australian product underpinned by nation-leading field sizes,” he said.
“With a new race field fee model implemented with all wagering service providers for FY26, and a continued focus on tightening discretionary costs, Racing SA has budgeted for a $1 million deficit in FY26 before returning to surplus in FY27.
“Achieving this will largely rely on maintaining our focus on the key drivers of growth and engagement in our product, being field sizes, race date and program optimisation, and ongoing investment in areas that sustain wagering confidence and industry participation.”
Average field sizes in SA have increased from 8.7 in 2020 to 10.8 in 2025, making it a benchmark state for horse numbers per race.
“ … this has sheltered us from the turnover and thus financial downturn seen across the rest of the nation,” Rorrison said.
Ownership and horse numbers remained steady during 2024/25.
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