Government bailout blessing for the racing industry, but questions remain about who gets what

Participants in the racing industry will have to wait to find out how the unaccounted for part of today’s $ 72.5 million government aid package escapes them.

Because the man in charge of the races admits he doesn’t know it yet.

Racing Minister Winston Peters was once again the white knight of racing today with his pre-budget announcement of the aid package, divided into three sections.

The Racing Industry Transition Agency (RITA, formerly known as TAB) will raise $ 50 million, another $ 20 million already promised in the past will go towards developing two synthetic thoroughbred tracks in Christchurch and Palmerston North, while $ 2.5 million will go to the Department of Home Affairs Affairs working to change the rules of the online game, potentially even to prevent New Zealanders gambling with any offshore betting operator.

The impotence of the latter will initially be ignored by many in the racing industry, but it could have the biggest long-term economic impact, as New Zealand’s racing and sport were losing more than $ 400 million annually to operators of off-shore betting the last time an accurate audit was performed. done.

If Kiwi bettors are barred from gambling with foreign operators, much of the money is expected to be wagered through the NZ TAB, but the main offshore sportsbooks the Herald spoke to yesterday had conflicting ideas about whether they would be banned. or not.

Implementing such a change could be a lengthy process, especially since New Zealand already has sports and racing betting deals in New Zealand with many overseas betting operators.

What will happen faster is that RITA uses $ 26 million of its $ 50 million grant to pay its bills and continue to contribute, but that still leaves them with $ 24 million, which RITA CEO Dean McKenzie is not yet unsure how it will be distributed.

“I still can’t give the industry an answer because this is also new to us,” says McKenzie.

“We, like many people in the industry, are delighted with the government’s support, but we have not had the opportunity to speak with the Minister for further guidance or with each other on how exactly that money will be used.”

Peters said the $ 24 million goes to RITA and the three racing codes to maintain basic functionality and resume racing again.

But what he didn’t say was how that money will be distributed, whether RITA will keep something to help its business while mass-financing the three codes or even targeting specific clubs deemed strategically important.

It makes no sense for RITA to have a healthier balance if no one is there to hold the races, so at least some clubs may need money to restart their businesses after many have been inactive for at least two months.

But the owners, coaches, riders are drivers who will want to see money injected into the bets, something McKenzie would not resort to.

What is certain is that the races in New Zealand will restart and RITA is out of danger for now. But work has not yet begun to re-engage punters, keep owners and coaches in the industry and the country, encourage crucial breeding numbers, and ensure careers remain a remote factor in the lives of those who are outside the industry.

There is a long way to go, but Peters has given the racing industry the drive to get moving.