Gambling revenues set to fall for 2019 Melbourne Cup

The lead up to the 2019 Melbourne Cup, so often described as the ‘race that stops a nation’, sees the event facing the prospect of declining revenues as the industry is impacted by concerns over the welfare of racehorses.

With gambling income from the race generating about 90% of Racing Victoria's annual revenue, from a $7 billion turnover in the last financial year, declining interest saw the 2019 Caulfield Cup experience a 24% fall in betting, while Racing Victoria reported a 7.5% decrease overall from record-high numbers last year.

Racing Victoria Chief Financial Officer Aaron Morrison, told the ABC “it's incredibly important and it's an incredibly important barometer for the health of our sport and our products.”

Animal welfare concerns were raised on the eve of the Spring Carnival when the ABC's 7:30 program highlighted the poor treatment of some thoroughbred racehorses after their careers had ended.

However, Racing Victoria's hybrid race fee model which taxes gambling companies when they win based on their revenue or turnover (whichever is greater), and on their turnover when they lose, has also been blamed for contributing to a decline in betting.

Responsible Wagering Australia, the peak body for gambling companies in Australia, believed these fees, combined with the introduction of a Point of Consumption tax, were placing pressure on companies.

A Responsible Wagering Australia spokesman told the ABC “when taken together, race field fees, the Point of Consumption Tax and other charges impose one of the highest effective tax rates on wagering globally.”

Other factors included the increasing uptake of sports betting and the retirement of superstar mare Winx.

The animal cruelty revelations have also seen celebrities staying away from the race.

Model Megan Gale, a regular for many years as the face of Melbourne Cup sponsor Lexus, announced on Thursday she won't be coming.

Singer Taylor Swift revealed last month she wouldn't be going ahead with a planned performance at Flemington, while actress Lana Condor pulled out of attending last week, with both citing scheduling issues.