The Queensland Government has announced a significant review of the state’s racing industry, marking the most extensive evaluation of its kind in over 25 years. A newly released discussion paper seeks input from industry participants and stakeholders, aiming to shape the direction of racing in Queensland, Australia.

Major review aims to secure the future of Queensland racing:

With an annual economic contribution exceeding $2.4 billion and providing employment for approximately 16,000 Queenslanders, the racing sector plays a crucial role in the state’s economy. A large portion of this economic impact benefits regional communities, underscoring the industry’s importance beyond urban centers.

The review will assess the long-term viability of the three primary racing codes—Thoroughbred, Harness, and Greyhound Racing. Key areas of focus include maintaining integrity, ensuring sustainable funding, and enhancing infrastructure to support the industry’s future growth. Additionally, the review will emphasize high standards of animal welfare while fostering stronger collaboration among stakeholders.

Queensland Minister for Sport and Racing Tim Mander stressed the importance of public input in shaping the industry’s future.

“We committed to a review into all aspects of racing, and this discussion paper is the first step,” said Mander. “The racing industry is a major contributor to the state’s economy, an important employer for many hard-working Queenslanders, and is at the heart of communities right across Queensland.

“From our biggest cities to our smallest and most remote towns, racing brings our communities together.

“We want to ensure the long-term financial stability, viability, and integrity of racing in the state.

“I encourage all stakeholders and participants to have their say and play an active role in this process to ensure a prosperous future for the industry, for the participants, for the employees and volunteers, and for the communities right across the state who simply love racing.”

Matthew McGrath, who has been appointed as Chair of the Queensland Racing Review, brings extensive experience to the role. A former Chairman of the Australian Turf Club and current board member of the Cronulla Sharks, McGrath emphasized the review’s broad scope.

“The Racing Review brings many elements together and will look at social, financial, and employment impacts and the welfare of those who compete on the track and vitally for the horses and greyhounds,” McGrath stated in a press release published by Queensland Government (Minister for Sport and Racing and Minister for the Olympic and Paralympic Games).

“The Review Team aims to be at as many racetracks as possible, meeting industry participants, punters, racegoers, and the teams of people who manage and work in the Clubs.

“The recommendations will be pragmatic and progressive to ensure the best future for Queensland racing.”

Industry funding and taxation concerns:

The review also seeks to address financial challenges within the racing sector, including concerns about taxation policies and their impact on wagering revenue.

Responsible Wagering Australia (RWA) has welcomed the review, viewing it as an opportunity to examine taxation structures and the sustainability of industry funding.

RWA CEO Kai Cantwell pointed to past policy changes that have influenced racing’s financial landscape. “Despite the former Queensland Government increasing the POCT to 20% in 2022 with an 80% passthrough rate to racing, the Government is now revisiting the industry’s funding and sustainability – highlighting the unintended consequences of over-taxation and regulation,” Cantwell said.

The existing model allocates 80% of revenue from Queensland’s Point of Consumption Tax (POCT) to the racing industry. However, a decline in wagering activity directly affects available funds for prize money, infrastructure development, and support for industry participants.

RWA has also raised concerns about taxation policies in other jurisdictions, citing the Australian Capital Territory’s decision to increase its POCT from 20% to 25% in 2023. According to Cantwell, this measure was introduced without industry consultation and ultimately resulted in a decline in overall tax revenue.

Beyond taxation, RWA has warned that excessive regulatory pressure could drive more bettors toward offshore gambling platforms. The organization has estimated that, if left unregulated, offshore betting markets could contribute to an economic loss of up to $3 billion in Australia by 2027.

Cantwell acknowledged the Queensland Government’s willingness to consult industry representatives as part of the review. “We thank the Queensland Government for taking time to consult with industry as part of the review and look forward to working together to find a way forward that is good for racing and good for Queensland,” he said.

The Queensland Racing Review discussion paper is open for public input until March 30, 2025. Stakeholders, including racing clubs, industry workers, and members of the public, are encouraged to provide feedback. The recommendations generated through this process will help shape policies aimed at ensuring a sustainable future for the racing industry in Queensland.