RQ bets on wagering growth to combat fall in UBET revenue

RACING Queensland’s wagering partner UBET has tabled a 3.6 per cent loss in revenue for the 2015-16 financial year.

Fixed odds betting has usurped tote bets, now accounting for 52.9 per cent of all turnover (up from 44.4 per cent last year). Picture: Jono Searle

RACING Queensland’s wagering partner UBET has tabled a 3.6 per cent loss in revenue for the 2015-16 financial year.

This was the first full 12 months of data since Tatts Group launched the UBET brand and, while turnover rose by 4.1 per cent, the move by punters away from parimutuel betting, which provides more certain returns, resulted in a lower ‘‘blended win rate’’.

The win rate fell from 16 per cent (on turnover) last year to 14.8 per cent, resulting in a revenue fall of $23 million on the $632.9 million from 2014-15, despite turnover being up by about $200 million.

Fixed odds betting has usurped tote bets, now accounting for 52.9 per cent of all turnover (up from 44.4 per cent last year). Parimutuel betting fell another 11.7 per cent in 2015-16.

Racing Queensland’s annual report is due soon and while its deficit is tipped to fall short of the original $28 million prediction, it could be close to $20 million.

The key figure for Racing Queensland and its thousands of participants will be the Race Information Fee deduction that UBET takes off its contribution to RQ for fees paid to interstate controlling bodies.

Last year the number rose alarmingly from $25 million to $34 million, which accounted for a big percentage of RQ’s $11 million operating loss.

Figures released by Tatts on Thursday were not broken down by state and territory (the group has operations in Queensland, South Australia, Tasmania and the Northern Territory), but it is expected Queensland numbers will fall in line with overall figures.

RQ acting chief executive Sam Adams said there was some positive news to take from Thursday’s figures.

“While UBET is operating in a competitive environment which has impacted on revenue, the wagering industry itself is growing,’’ he said.

“Signs for future growth with UBET are positive, with the continued upgrading of retail outlets and the strong growth in online markets.’’

There was some positive news for the racing codes, with betting on gallops, harness and dogs contributing 83.6 per cent of the total UBET turnover (up from 82.6 per cent last year).

Under The Louvre (No. 7) gains the upper hand over Black Heart Bart in Queensland’s premier race, the Stradbroke Handicap. Picture: Jono Searle

Originally published as RQ bets on wagering growth to combat fall in UBET revenue