Written by Paul Vettise
Racing Minister Winston Peters had positive news for the racing industry during his opening address at New Zealand Bloodstock’s May Sale at Karaka.
He announced a repeal of the betting levy currently paid by the industry to the Crown and it will be phased out over a three-year period, with freed-up funds to be redirected to the racing and sports sectors.
The betting levy represents four per cent of betting profits, which amounted to NZ$13.9 million in 2018.
“We’re not talking about small change here,” Peters said. “Redirecting the betting levy is a step toward revitalisation of the racing industry.
“We’re not talking about small change here.” – Winston Peters.
“It was a recommendation of the Messara review of the racing industry and was endorsed by the Ministerial Advisory Committee (MAC),” Peters said.
Arrowfield principal John Messara recommended widespread changes to the NZ industry in his 2018 report
Respected thoroughbred identity John Messara, principal of Arrowfield Stud, recommended widespread and sweeping changes to the New Zealand industry in his report completed last August.
“The report by John Messara addressed racing’s need to boost revenue, without it the industry will at best remain static,” Peters said.
“The betting levy funds will be redistributed to the racing codes and Sport New Zealand, with a proportion set aside to support the reduction of gambling harm.
“This change will provide an important source of revenue for industry investment decisions.
“The racing industry plays a vital role in the New Zealand economy, having contributed NZ$1.6 billion to the economy in 2016-17 whilst employing tens of thousands of New Zealanders, many of them young, and boosting New Zealand’s exports.”
“It is important that the industry is revitalised and placed on a sustainable footing for the future.” – Winston Peters.
Peters said it was paramount that changes were made and these were preliminary moves with more announcements to follow.
The NZ racing industry employs tens of thousands of New Zealanders
“It is important that the industry is revitalised and placed on a sustainable footing for the future.
“Redirecting the betting levy funds is only one of a number of steps the government is undertaking.
Last month, Peters also announced a Government agreement to a stepped response to the Messara Report, introducing two new pieces of legislation to bring new governance arrangements and other sources of industry revenue.
In a blunt appraisal, the Messara Review made 17 major recommendations, including the reduction of tracks from 48 to 28, the construction of all-weather tracks at Cambridge, Palmerston North and Christchurch and outsourcing the TAB’s commercial activities to an international operator.
