Punters bet a record $5.23b on Victorian racing in first six months of financial year

Punters wagered on Victorian racing in record numbers despite another Covid lockdown in the first six months of the 2021-22 financial year.

Verry Elleegant wins the Melbourne Cup.

Wagering on Victorian racing surged again in the first half of the financial year as punters continued to bet in record levels despite further waves of Covid-19 sweeping Australia.

But the high betting figures failed to provide a boost to Racing Victoria’s coffers.

RV reported Australian punters bet a record $5.23b on Victorian racing in the first six months of the financial year.

Turnover rose 5.4 per cent, taking betting on Victorian thoroughbred racing through the $5bn barrier in the first half of a financial year for the first time.

However, RV chief executive Giles Thompson reported revenue was down “two or three per cent” in the same period.

Thompson said the slight revenue decline was expected with RV’s revenue figures still surpassing budget for the six months up to December 31.

Race results accounted for part of Racing Victoria’s revenue decline.

Outgoing CEO Giles Thompson.

Racing authorities receive less income when betting agencies make lower profits on the sport.

Bookmaker margins fell from 13.4 per cent to 11.8 per cent last year as more favourites saluted across the state.

Favourites won 37.3 per cent of races for the first six months of the financial year, up from 31.9 per cent from the corresponding period last year.

Crowds were locked out of the majority of the spring carnival but that failed to stop record betting levels on eight of the 10 major meetings of the sport’s peak period.

Verry Elleegant’s Melbourne Cup attracted a record $223.8m in betting turnover last November. Picture: Michael Klein

All 10 meetings enjoyed turnover growth but Melbourne Cup Day grew by 7.6 per cent to $375.6m.

The only two major race days which did not have record turnover were Derby Day and Oaks Day, however, turnover was still up on the year prior.

The Cup Day betting bonanza pushed turnover on the four days of the Melbourne Cup Carnival to a record $724.1m.

Betting turnover was not the only number to increase with prizemoney hitting record levels in the 2021/22 financial year.

Perhaps spurred on by aggressive prizemoney increases in NSW, Racing Victoria will pay out $286.5m in stakes, up $18.7m on last year.

“This is a positive set of racing and wagering results for the first half of the 2021-22 financial year, which demonstrates the strength and overall health of the Victorian thoroughbred racing industry despite the many challenges presented by the COVID pandemic,” Thompson said.

“Victorian racing is in good health and with many things to be positive about including a record $286.5 million in prizemoney and bonuses on offer across FY22 which represents an increase of over $110 million or more than 60 percent since 2015.”

Thompson said rapid growth in digital betting was part of the reason for the record numbers.

But he added he expected that growth to slow in the coming months.

“COVID restrictions have again accelerated the shift to digital wagering and ensured record wagering numbers in the first half (of the financial year), however that has begun to plateau throughout the third quarter as restrictions ease and competition increases for the entertainment dollar,” he said.

Thompson will leave his role at the end of June.

Originally published as Punters bet a record $5.23b on Victorian racing in first six months of financial year