UPDATE: Despite growing concerns over declining public interest, Australians continue to wager heavily on the Melbourne Cup, with bets amounting to $214 million last year, only a slight drop from $221 million in 2020. This revelation comes as the animal welfare debate around the event persists.
The Melbourne Cup remains a major driver of gambling in Australia, even as overall betting on horse racing has declined sharply, down 10.2% in Victoria over the last financial year. Racing Victoria reports that total wagering turnover fell from $9.1 billion in 2022 to $7.9 billion last year, raising alarms about the industry’s future.
Many Australians express waning enthusiasm for traditional horse racing, yet the Melbourne Cup serves as a unique marketing opportunity for bookmakers. Charles Livingstone, a gambling researcher at Monash University, stated, “This is like the grand final – it’s a great marketing opportunity,” highlighting how the event attracts casual bettors.
While the Melbourne Cup draws significant attention, gambling on other sports is on the rise. Flutter Entertainment, the parent company of Sportsbet, noted in their August report that the Australian racing market remains “softer” than expected. The sports betting sector, including Australian Football League (AFL) and National Rugby League (NRL), continues to thrive, presenting a challenge for horse racing.
The decline in overall gambling revenue can be attributed to several factors: rising cost-of-living pressures, higher interest rates, and a drop in promotional offers by bookmakers. In fact, the number of “free bets” offered on horse racing fell by nearly 10% last year, reducing the amount wagered on these promotions from $184.6 million to $166.7 million.
Despite these challenges, some reports indicate that bookmakers’ margins increased from 14.2% to 15.4%, attributed to fewer favorites winning races. Aaron Morrison, CEO of Racing Victoria, stated that “stronger than average wagering operator gross margins” helped offset the turnover decline.
As the Melbourne Cup approaches, racing authorities are investing in strategies to attract younger audiences. This includes partnerships with live music festivals, aiming to revitalize interest in spring carnivals. The recent Derby Day event saw a crowd of over 86,000, marking a 5.5% increase from last year, indicating potential for growth.
As the situation develops, all eyes will be on how the Melbourne Cup fares this year, and whether its appeal can withstand the shifting landscape of Australian gambling. Racing officials urge participants to stay informed about changes in regulations and market dynamics.
For continuous updates and breaking news, stay tuned to our latest reports.
