Darwin Turf Club has denied its Silks venue is losing $23,000 a week

Darwin Turf Club has denied a cornerstone venue is losing tens-of-thousands of dollars a week, as it welcomes a government review into the racing industry. Read what’s being said.

Darwin Turf Club has denied claims its Silks entertainment venue is losing $23,000 a week. Picture Katrina Bridgeford.

Darwin Turf Club’s Silks entertainment venue was a millstone around the neck of the Territory’s racing industry, requiring thousands of dollars every week to keep it operational at the expense of other racing services, financial documents show.

The NT News has spoken with a number of people close to the Darwin Turf Club who claim the Silks’ 2020 opening had signalled the start of a tough new era for the club, which has endured a number of challenges over the past five years including an embarrassing political scandal.

A document obtained by the NT News showed that as of December 2023, Silks’ income as a loss totalled $1.19m – $23,000 a week.

Darwin Turf Club chairman Craig Tresize denied that Silks was currently a financial burden and that the figures were old and out of date.

Darwin Turf Club chairperson Craig Trezise. Picture: Pema Tamang Pakhrin

He said Silks had made its last payment on $2.4m of Westpac Debt in September 2024, which reduced the monthly debt repayments by about 50 percent (90k per month to 45k).

“This has come on the back of improved operating profit for the year 2024 when compared with 2023 figures with a focus on labour costs and in-house promotions,” Mr Trezise said.

“Gaming has seen year-on-year numbers improve after a sluggish start to 2024 and is currently trending higher than budget expectations.

“Despite economic headwinds faced by all households around the country and in turn challenges for hospitality outlets, the viability and trending conditions of Silks Darwin remain buoyant against the cost of living crisis.”

The NT Government has called a review of the Territory’s racing industry – the third in the past decade – and the position of chief executive is being opened up for applications, with incumbent Grant Dewsbury uncertain whether or not to recontest the role.

The Turf Club has welcomed the review stating it has faced significant financial pressures in the past three years with funding levels well below the historical averages.

As a result the club has implemented several measures including limiting access to only the new grandstand for meets outside the Darwin Cup Carnival.

It has also temporarily suspended TAB operator assisted betting services on-site and reviewed additional operational areas to manage costs effectively to ensure the club’s viability.

“We are hopeful that this review will provide the foundations to rebuild and grow, enabling us to deliver world-class racing experiences and facilities for the community, participants, and visitors alike,” Mr Trezise said.

“This review is an opportunity to chart a sustainable and prosperous path for the entire racing industry.”

Silks, but not this type, are causing issues at Darwin Turf Club. Picture by Patrina Malone

The NT News has learnt Thoroughbred Racing NT would have initiated its own review into Darwin Turf Club had the NT Government not stepped in.

Thoroughbred Racing NT last year expressed concerns at the ongoing financial sustainability of Darwin Turf Club.

There is incredulity from some supporters of Darwin Turf Club, which was formed in 1955 and is one of the Territory’s oldest continuous clubs, that despite financial issues the chief financial officers role has been downgraded to a finance manager position.

And while the $8.8m venue and eatery has proven popular with punters, it has brought with it considerable running costs that have been linked to some of the fiscal pruning that has recently been implemented across the club.

Last Darwin Cup Carnival, the club broke with tradition and did not open the internal carpark to spectators which, while drawing some criticism, is understand to have saved hundreds-of-thousands of dollars.

Darwin Turf Club’s chief operating officer role has been vacant since October and experienced venue operator Russell Reid was the last permanent manager at Silks. He left the role in 2024 and is now managing the Endeavour Group’s NT operations.

It is understood Silks is suffering financial losses despite no rent being charged on the venue and having 55 poker machines for use by patrons.

Questions around the future of a stable development that has been planned at the Fannie Bay racetrack for a number of years also remain, despite the $4m project being lodged with the Development Consent Authority last year.

In addition, the NT News has been told Darwin Turf Club was paid its capital expenditure by the previous Labor Government as a lump sum, instead of over 10 years, meaning a $4.5m cash injection that was placed in Silks’ offset account.