Racing prizemoney is on the chopping block in Queensland as Racing Queensland (RQ) comes to terms with a projected loss of $28 million this financial year.
That’s $7 million worse off than Premier Annastacia Palaszczuk predicted RQ would be just last month, when a damning report was handed down into animal cruelty in the state’s greyhound industry.
But Racing Minister Bill Byrne in parliament on Thursday pointed to several factors that has caused the anticipated revenue gap to be “far worse than we thought”.
“Revenue assumptions were simply wrong, while expenditure grew unsustainably,” Mr Byrne said.
The minister said RQ budgeted for an unrealistic expectation from revenue growth from wagering that didn’t materialise, particularly involving a 30-year, $4.5 billion deal last year with gambling giant TattsBet, now called UBET.
That deal prompted prizemoney expenditure to grow significantly last year – accounting for 61 per cent of RQ’s costs.
The dire state of RQ’s books might not have even been known if the government hadn’t sent KPMG auditors in after the greyhound report.
KPMG’s Ian Hall, who assumed the role of RQ interim CEO, said several factors would be considered to reduce the growing revenue gap.
He wouldn’t rule out cutting back the increased prize money.
“Obviously, it is the largest expense and everything is on the table to be looked at and considered,” Mr Hall said.
Mr Hall said RQ’s budget had failed to factor in the fact the state’s most popular track, Eagle Farm, was out of commission and it didn’t allow for wet weather events.
The optimistic revenue forecast also didn’t take into account changing betting trends, he said.
Meanwhile, Mr Byrne said that since the commission of inquiry into the state’s greyhound industry, four cases have been referred to the Crime and Corruption Commission involving RQ.
Mr Byrne refused to offer more details, except to say they were separate to the 68 charges laid against 25 people in relation to serious animal cruelty offences.
“Let’s just say they’re not being referred to the CCC for matters associated with tiddlywinks,” Mr Byrne said.
“We’re talking about substantive, serious issues and that’s the way they’re being treated.”
RACING QUEENSLAND’S PATH TO SUSTAINABILITY
* Business as usual for next six months
* Consultation with industry over the next three months
* First meeting scheduled for start of August
* Reviewing and analysing feedback over next six months, developing strategies for path back to sustainability
* From January 1, 2016, steps will be put in place to bring industry back to a sustainable future
(Source: Racing Queensland interim CEO Ian Hall)
