Racing Distribution Agreement in South Australia: What You Need to Know
If you are involved in the racing industry in South Australia, you may have heard about the Racing Distribution Agreement. This agreement, signed in 2018, has been designed to improve the distribution of race betting revenue in the state.
What is the Racing Distribution Agreement?
The Racing Distribution Agreement is an agreement between the South Australian Government, Racing Australia, and the three racing codes – Thoroughbred Racing SA, Harness Racing SA, and Greyhound Racing SA. The agreement outlines how the revenue from race betting will be distributed between the three codes and the government.
Why was the Racing Distribution Agreement introduced?
The Racing Distribution Agreement was introduced to address the declining revenue of the racing industry in South Australia. In recent years, the industry has been facing significant challenges due to the rise of online bookmakers and the closure of betting agencies.
Under the Racing Distribution Agreement, a percentage of the state`s racing betting revenue is allocated to the industry to support growth and sustainability. This revenue is distributed between the three codes and the government, with the majority going to the codes.
How is the revenue distributed?
Initially, 50% of the revenue goes to the Thoroughbred Racing SA, 25% to the Harness Racing SA and 25% to the Greyhound Racing SA. However, if a code fails to meet the minimum performance criteria, it may receive a smaller percentage of the revenue.
The government receives a percentage of the revenue to cover the costs of regulation and support for the industry. The remaining revenue is used to support industry development and marketing initiatives.
What are the benefits of the Racing Distribution Agreement?
The Racing Distribution Agreement provides several benefits for the racing industry in South Australia. Firstly, it provides a stable and predictable revenue stream for the three codes, which helps support the growth and sustainability of the industry.
Additionally, the Racing Distribution Agreement provides a framework for cooperation between the codes and the government, which helps to ensure that the industry is regulated effectively and efficiently.
Finally, the Racing Distribution Agreement helps to promote the racing industry in South Australia, by providing funding for marketing initiatives and development programs.
Conclusion
The Racing Distribution Agreement is an important agreement for the racing industry in South Australia. It provides a stable and predictable revenue stream for the three codes, which helps to support industry growth and sustainability. Additionally, it promotes cooperation between the codes and the government, and provides funding for marketing and development initiatives. Overall, the Racing Distribution Agreement is a vital initiative that will help to ensure the ongoing success of the racing industry in South Australia.