2025-07-30
ACT Greens Deputy Leader Jo Clay has uncovered in estimate hearings that Labor’s new gaming reform minister will not actively advocate for an end to the Government’s exorbitant funding gifted to the horseracing industry every year.
“The Minister was at a loss today to explain how the exorbitant funding gifted to horseracing provides any value for money. She refused to say if she would support or advocate against renewing this funding deal for the racing club when it expires next year,” Ms Clay said.
“A Cabinet document released from the vault with Andrew Barr’s signature on it shows the public service acknowledged a Memorandum of Understanding (MOU) might underwrite “poor performance” and there were no public interest arguments for government to hand this subsidy to the racing industry back in 2010. Yet Labor is still giving them over $8 million each year, 15 years later.
“Over the many years since, the industry itself has admitted that they are struggling to attract patrons. Most Canberrans don’t support horse racing. But government has decided to instead cut essential, community services in this year’s budget rather than cutting this ludicrous handout.
“The Minister knows 60% of the club's profits come from gambling harm and advertising – and despite saying she is focused on reducing gambling harm, she would not say if she will support the agreement being renewed in 2027.
“Conditions in the MOU aren’t even being met. The club has been in breach of reporting requirements, with its report on whipping racehorses now 18 months overdue and the Minister indicating there may be problems with the horseracing industry meeting these basic welfare requirements.
“The Greens have voted against this part of the budget every year since the latest MOU was signed simply because this is a bad deal for Canberrans. Horse racing profits off harm to everyday people and prioritises gambling profits over the wellbeing of horses.
“It is clear today that the ACT Government can't justify funnelling taxpayer money into a gambling operation that no longer has support of the majority of the Canberra community.
“Labor has got to realise the game is up. They’re too cozy with the gambling industry and the community deserves their taxes to be used for good – not for this ridiculous handout to the horse racing club.”
Background:
- The Government’s MOU with the horse racing industry is worth $40 million over 5 years, plus indexation to CPI. Each year the racing clubs receive more government money than all other local sports combined, including the Brumbies, Raiders, Capitals and United.
- The Cabinet Submission about the racing industry’s funding model shows the public service was wary, in 2010, of “underwriting poor performance of the racing clubs”, which are still not self-sufficient.
- On Friday 23 July, the Gambling and Racing Commission confirmed the value of its Memorandum of Understanding with Access Canberra to carry out compliance and enforcement activities is $5.9 million for this current financial year.
- The Greens have urged the government since 2022 to abandon the latest MOU, which is due to expire in 2027.