The government-funded greyhound racing industry

A taxpayer funded industry

The Queensland Government funded Racing Queensland with $76 million over FY22. This included $54.25 million which was a percentage of the Point of Consumption Tax (POCT) paid to the government by wagering operators. In June 2022, the Queensland Government announced that the percentage of POCT given to the industry will increase to 80% later this year. This is tax that could and should be used to support areas that are of critical importance to most Queenslanders: healthcare, education, infrastructure. But the taxpayer handouts continue.

The Queensland greyhound racing industry received $9.3 million which represented 17.3% of the POCT funding given to the industry. FY22 taxpayer funding also included $17.6 million for the Country Racing Program.

From an animal welfare perspective, it is interesting to note that by far the largest expense noted in Racing Queensland’s FY22 Annual Report was “Prize Money and Breeders Bonuses” of $208 million. Only a woeful $1.9 million was spent on ‘animal care’.

While $18 million was allocated to the “integrity function”, animal welfare is bundled with ‘licencing and registration of participants (not clubs) and stewarding’ so it is impossible to know how much money is actually spent on improving the welfare of racing animals.

Ipswich Racetrack

The Queensland Government will provide $40m for a greyhound racing complex at Yamanto. The facility will have two curved tracks despite extensive research by the University of Technology, Sydney showing that most deaths occur at track turns.

Read more in CPG’s “Running for their lives”

In 2017, after a five-year campaign led by Animal Liberation Queensland, plans for a greyhound track at Logan were scrapped.

Debt write-off

In late 2018, Racing Queensland Chairman Steve Wilson AM said, “Despite increasing returns to participants by $15.2 million over the past two years RQ remains a loss-making organisation.”

In 2019, the Qld State Government took further steps to prop up the industry with a $17.8 million debt write-off. This represented 50% of historical debt owed to the Government. The Government also made a one-off payment of $20 million to be invested in new greyhound and harness racing facilities.

Regulator funding

In April 2015, the Queensland government announced a Commission of Inquiry into the regulation of the Queensland greyhound racing industry following the discovery of incidents of live baiting. A primary recommendation was the separation of the commercial and integrity aspects of the industry.

As a result, the taxpayer-funded Queensland Racing Integrity Commission (QRIC) was established in June 2016. While QRIC is an independent body responsible for animal welfare, it states that it “exists to contribute to the ongoing success of the racing industry in Queensland”. This highlights the conflict of interests that still exists.

In FY22, the Queensland government funded QRIC with $31.57m of taxpayer money comprised of:
• Queensland Government grant of $30.94 million
• Services received below fair value (services provided by Queensland Police Service and Queensland Racing Crime Squad which are based at QRIC) of $624k

Regulator funding

The Greyhound Industry Reform Panel recommended the establishment of an independent greyhound racing regulator to try and reduce the systematic animal cruelty and mass killing exposed in 2015.

The NSW Greyhound Welfare and Integrity Commission was established in 2018. Initially, GWIC was funded by Greyhound Racing NSW but in June 2021, the NSW racing minister Kevin Anderson announced $25 million for a new taxpayer funded model. According to the minister this would free up millions of dollars which can be reinvested in facilities and prizemoney.

In FY21/22 the NSW Government provided taxpayer funding of $19.7m to GWIC made up of:
$16.1m – point of consumption tax from GRNSW and NSW Treasury
$3.5m – grant from NSW Department of Customer Service

Deadly tracks

In June 2017, the NSW Government announced a five-year $30m taxpayer funded Racing Capital Grants Program designed to bring all greyhound racing tracks up to minimum standards. However, it wasn’t until June 2020 that Greyhound Racing NSW released its Minimum Standards for Racecourse Design and Construction.

According to the Office of Racing, as at September 2022, the NSW Government has funded projects under the Racing Capital Grants Program at a total cost of $10.9m. This leaves a balance of $19.1m of taxpayer money to be used to bring racing tracks up to minimum standards by 30 June 2023.

Millions of taxpayer dollars continue to be wasted trying to make tracks safe, with dogs still being killed and injured after upgrades. Designs from University of Technology Sydney are claimed to make tracks safer, but dogs still die and suffer on these tracks.

All greyhound racetracks are unsafe, whether upgraded or not. The industry rejects the safest form of racing – a straight track with individual lanes.

Missing, feared killed

In February 2021 racing minister Kevin Anderson announced a $3.6 million taxpayer-funded electronic tracking system to protect greyhounds from unnecessary euthanasia.

However, the system only tracks greyhounds until “de-registration” which does not reflect the greyhound lifecycle which extends from birth, through retirement, to death.

The NSW partial tracking system does not track puppies prior to microchipping, greyhounds sent interstate or greyhounds that are rehomed privately by their owners.

In May 2021 a Bill was introduced by Greens NSW which will allow genuine whole-of-life tracking from birth to death of all greyhounds that have been involved in the racing industry.

Tax given to industry

In January 2019, the New South Wales government introduced a point of consumption tax (POCT) of 10% on all wagering revenue. The POCT was implemented as a way of closing a loophole in existing laws whereby most online bets were not taxed.

In an agreement with the racing industry, the New South Wales government gave 20% of the POCT to the racing industry. In June 2022, the NSW POCT increased to 15% with 33% passed on to the racing industry. In FY21/22, this amounted to $8.6m given directly to Greyhound Racing NSW with additional POCT used to fund the Greyhound Welfare and Integrity Commission.

Gambling wins big with COVID boost

With their COVID-19 survival package, the Victorian Government prioritised gambling and animal exploitation over sport, culture and tourism.

The Victorian racing industry received $44 million, the largest slice of the $150 million taxpayer-funded pie.

Funding from betting tax

On 1 January 2019 the Victorian government implemented a point of consumption tax (POCT) on wagering and sports betting. From July 2021, the POCT applied at a rate of 10% of net wagering revenue with 3.5% passed on to the Victorian racing industry.

The total amount of POCT given to Racing Victoria in FY21 was $25 million of taxpayer money, of which $6.2 million was passed on to Greyhound Racing Victoria. In FY22 this increased to $63.3 million given to Racing Victoria with $15.4 million passed on to GRV.

This is all taxpayer money that could be spent on fixing roads, healthcare, education, aged care and other areas that are critical to the entire community.

The assumption that gambling tax should be “ring-fenced” and only used to support the racing industry is without merit. If we followed this line of reasoning, then alcohol tax should only be used to build breweries rather than benefit the wider community.

Victorian Racing Infrastructure Fund

The Victorian government has given approximately $340 million of taxpayer dollars to the racing industry since funding commenced in 2001. Between 2015 and 2021, $158 million has been provided to the industry via the Victorian Racing Infrastructure Fund.

Established in 2011, the VRIF provides funding to the Victorian racing industry to “support the sustainability and growth of thoroughbred, harness and greyhound racing.” This demonstrates that it is the taxpayer who continues to prop up an industry that is considered by most people to be outdated, cruel and unsustainable.

It’s a gambling industry

In 2001, the Victorian Government compensated the racing industry for income lost as a result of a levy on gaming machine profits. The racing industry received a share of gaming machine profits from its joint venture with Tabcorp.

This investment in the gambling industry continued over the next 20 years through a variety of taxpayer funded grants and one-off payments.

A loss making industry

TasRacing is funded primarily by the Tasmanian taxpayer via an Annual Industry Funding Grant. The Grant provides the industry with a minimum of $27 million a year over a 20-year period, increasing by CPI annually.

A Government inquiry into the performance of Tasracing highlighted numerous issues with the funding agreement including that: “The ongoing indexed $27 million funding model fails to tie funding to performance and is irrespective of revenue earned.”

The latest increase in taxpayer funding for the industry was announced in September 2022. This is despite growing resistance by Tasmanian taxpayers. A parliamentary petition in June 2022 calling for an end to public funding of greyhound racing amassing more than 13,500 signatures, the most of any e-petition tabled to parliament.

In 2020, the Racing Minister also announced $8m in taxpayer funding for new greyhound and harness racing facilities in North West Tasmania. This is despite the public outcry about the greyhound deaths and injuries on existing tracks.

Greyhound Racing SA chairman Grantley Stevens and SA Racing Minister Corey Wingard at the opening of the Murray Bridge track in July 2019 which saw the death of a greyhound. (Photo: Greyhound Racing SA)

SA Racing claims its “clean”

Unlike other states which responded to the 2015 NSW live baiting scandal with comprehensive inquiries into the industry, the SA Government have refused to support an independent inquiry.

In June 2019, Racing Minister Corey Wingard delivered a $24 million package to the SA racing industry. The Minister spoke of the important work of the racing industry and how the Government would help to strengthen the viability of its business model. This is despite the Government having minimal oversight into the welfare of animals involved in the racing industry.

Taxpayers compensating the racing industry

In 2018, the SA Government introduced Australia’s first Point of Consumption Tax (POC Tax) on wagering operators. Throughout 2018, Queensland, Victoria, NSW, WA and the ACT followed suit. NT has expressed opposition to the tax and Tasmania has not made its position known.

The introduction of the POC Tax has resulted in upheaval in SA with the racing industry saying they have been adversely affected. In June 2018, the Government granted a $4.85 million compensation payment to the SA racing industry.

The SA state government returns 10% of the Point of Consumption Tax to the SA racing industry. This was estimated at between $4.6 and $5 million of taxpayer money for FY22.

Despite millions in taxpayer funding for the greyhound racing industry, Greyhound Racing SA provides very little information on the dogs it exploits and kills. The SA state government has allowed animal welfare oversight to remain with the commercial dog racing body which has responsibility for racing promoting. These are two conflicting objectives.

GRSA is also the only racing body in Australia that remains exempt from FOI, aside from the Northern Territory. This allows it to operate in secrecy.

This is not a self-funded industry

Claims that greyhound racing is self-funded are simply not true.

For example, the WA racing industry including greyhound racing is funded primarily via profits made by the Government-owned WA TAB. This is supplemented by income generated via the race bets levy paid by national wagering operators and proceeds from the point of consumption wagering tax. This is all taxpayer money that could be spent on areas of critical importance to the WA community like health, education and infrastructure.

Over FY21 and FY22, the WA state government gave the greyhound racing industry $57.1 million of taxpayer money.

Investigation into Darwin Greyhound Association

The Darwin Greyhound Association operates the only registered NT track at Winnellie. They receive hundreds of thousands of dollars a year from the NT Government.

In 2020, the NT Racing Commission launched an investigation into the Darwin Greyhound Association (DGA) following a series of allegations made by current and former members and trainers.

The investigation found that NT greyhound racing “does not have adequate policies and procedures in place to ensure best practice animal welfare standards are being adhered to.”

The report exposed an industry operating with little or no concern for animal welfare. It also revealed a regulator with few strategic or operational guidelines in place to protect greyhounds from injury, unnecessary euthanasia and doping; and promote adequate housing and medical care.

Land Tax Exemption

The NSW Government grants a land tax exemption for land owned by or held in trust for any club for promoting or controlling horse racing, trotting or greyhound racing which is used primarily for the purposes of their meetings. This will amount to $52 million over three years from 2021 to 2023.

A taxpayer-funded industry

In FY22, the Tasmanian government funded the racing industry with $31.81 million of taxpayer money under a 20 year Annual Industry Funding Grant.

The Tasmanian greyhound racing industry received $5.93 million which was an increase of 13.9% on the previous year. This increase was used to increase prizemoney for participants.

In June 2022, a petition was tabled demanding an end to taxpayer funding of greyhound racing in Tasmania. The petition received more signatures than any other parliamentary petition. Despite this the Tasmanian Racing Minister announced in September 2022 that taxpayer funding for the industry will increase by 8%.

In 2020, the Minister also announced $8m in taxpayer funding for a new harness and greyhound racing track in Devonport. There is no commitment to incorporating a straight greyhound racing track despite 75% of fatal injuries occurring on track turns.