The Case for Change
The role and functions of Racing NSW have grown significantly since the Thoroughbred Racing Act was introduced in 1996, while that Act has also been amended in ways that have given more power and independence to the regulator.
Among the issues identified with the Act are:
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1
When the Thoroughbred Act was first introduced, it made clear that Racing NSW would be independent of the state government, but the directors of its board would be accountable to the industry. Representatives from across the Thoroughbred industry would comprise the selection panel that appointed people to the board and decide whether to extend their terms. But the Act was amended in 2008, and now the Minister for Racing chooses the selection panel and board, with no input from the industry.
As a result, in our view, Racing NSW does not have the clearly entrenched Ministerial and Parliamentary accountability measures that the community expects of authorities of this kind.
Additionally, the accounts of Racing NSW are not subject to scrutiny by the NSW Auditor General, unlike other statutory authorities. This issue was raised by former NSW Auditor General, Tony Harris, in a submission to the Rosehill Inquiry.
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2
The funding model has changed dramatically since the Act was created: all revenue from corporate bookmakers, such as SportsBet and Ladbrokes, as well as the income from Point of Consumption Tax and many government grants flow directly to Racing NSW. Having control of these funds and how they are distributed has changed the balance of power between Racing NSW and the state’s clubs in a way that could not have been envisioned when the Act was created.
This change means clubs are dependent on Racing NSW for funding to maintain their facilities or undertake capital upgrades.
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3
Racing NSW is given sweeping powers to regulate the industry under the Act: for example, people can be warned off and have their businesses closed down, while stewards have stronger investigative powers over licensed participants than police do over citizens. Unlike in other states, however, this integrity function is not clearly separated from the commercial and strategic arm of the organisation.
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4
As well as changing how board members were appointed, the Act has twice been changed to allow directors to remain much longer than is regarded as sound governance practice. The original term was eight years, but it was increased to 10 and then 12 years in 2021. In fact, in 2023 the state Government sought to increase the term of then Racing NSW chairman, Russell Balding, to 14 years. These longer terms are out of step with other statutory authorities.
Join the Movement
Every voice counts. Whether you are a club member, a trainer, an owner, punter, employee or simply a fan of racing, you can make a difference by staying informed and connected.
Join our mailing list to receive updates, learn how to make submissions to the Hazard Review, and access resources to contact your local Member of Parliament.
Together we can ensure that racing in NSW remains a sport guided by integrity, not influence.
Contact us at: admin@reformnswracing.org
