The Racing Industry Transition Agency (RITA) in New Zealand (Executive Chair, Dean McKenzie) have or are looking to implement several cost cutting measures in light of the COVID 19 racing shutdown.
The first of these concerns the proposed racing calendar for the new season (1 August 2020 – 31 July 2021) whereby the current thirty one venues utilised for harness racing will be halved reducing the number of tracks used to sixteen. Whilst the date calendar is yet to be finalised fewer tracks will be the norm in future years. Addington Raceway (Christchurch) are likely to host seventy seven meetings next season as against its current thirty six – 47% of the standardbred horse population in training reside in the greater Canterbury area which will host 45% of the meetings. A total of 246 meetings as against the current seasons 259 are proposed.
The resumption of harness racing in New Zealand on Thursday 28 May 2020 without crowd attendance saw the further cost reduction measures introduced:
- Form guides (race fields) no longer published in NZ newspapers and neither are race results. An editorial racing service distributed to mainstream media will continue covering major race meetings and industry issues
- Totalisator Agency Board (TAB) phone betting system via call centre operators discontinued although touchtone phone betting continues
- Trackside Radio does not resume broadcasting
When crowds return to the races they can expect to see further cost cutting measures in place :
- Phasing out of on course manual betting facilities with operators being replaced in favour of an increasing number of self-service betting terminals (already an on course feature). It is implied that operators may still feature on major racedays (NZ Cup Week for example) where greater numbers of general public are in attendance who will definitely not be conversant with terminals and web enabled options
- Racebooks to be made available at individual clubs discretion
It is acknowledged that cost reductions are and have been necessary for some considerable time. The reduction in staffing (230 positions) at RITA in an attempt to drastically reduce costs is long overdue. For each of the additional cost cutting measures such as those mentioned above, there is always a likely revenue consequence. In each case there are possible downsides – the lack of newspaper published fields and results will impact those without cell phone/computer access to relevant websites (TAB, Harness Racing NZ, some clubs) containing race fields etc. Likewise touchtone only phone options may discourage some existing bettors and some may not be inclined to bet through internet options. The lack of Trackside Radio for commentaries, information re odds and discussions will be missed especially if pay to view SKYTV Trackside channels are not subscribed to.
Changing on course options may come with some resistance – whilst self-service terminals are akin to using ATM machines, not everyone is keen on them. The lack of an on course race book is more problematic – no guide of any kind apart from those on a screen (phone/laptop/tablet etc) could turn people off completely and reduce both betting and subsequent meeting attendance.
The lack of manual tote operators and race books are thorny issues for consideration where major meetings are involved and especially during the very successful Christmas racing circuits where the majority of the crowd are normally non-race goers – the one time a year punter whose dollar it is vital clubs and the industry attract. They will not react well if simple items like race book form and cash betting options with a tote operator are not available. The numbers of patrons involved at particularly Christmas meetings who are not normal racegoers will not be catered for well with self-service terminals, queues and delays are not what the industry requires on such “family/picnic” specific days.
We have your number Mr McKenzie. It is to be hoped that at the worst betting revenue remains at its pre COVID 19 level and better still improves following lockdown as a result of these cost saving measures. An outcome where betting turnover actually worsens as a result of the cost saving measures put in place above does not bear thinking about.
Peter Craig
30 May 2020
Approved By Dean Baring www.harnessbred.com
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