Racing Victoria has released its financial results for the 2023-24 fiscal year, revealing a statutory net deficit of $11.8 million.
The organisation had anticipated a shortfall, budgeting for a $12.1 million deficit, in light of factors such as a weaker wagering market and adjustments to the industry funding structure. The reported deficit also reflects a one-time expense tied to the Southside Racing merger and other non-recurring costs. Excluding these one-off items, the underlying net deficit stood at $3 million, compared to last yearโs net surplus of $0.2 million.
“After 11 consecutive years of surpluses, we projected a deficit for FY24, considering the evolving landscape around our industry funding framework and the national wagering market,” said RV Chief Executive Aaron Morrison. “The net underlying result ended up better than anticipated.”
Morrison explained that RV’s executive team and board made a strategic decision to sustain participant returns and other stakeholder funding despite declining revenue and funding model changes.
“As part of this, we undertook a major adjustment in race scheduling and prize money distribution while implementing spending cuts across the organization to help manage the anticipated deficit,” he added.
RVโs net asset position currently stands at $185.4 million, which Morrison noted enables the organisation to absorb the planned deficit in the short term. This approach ensures continued investments in critical areas such as welfare, infrastructure, and maintaining competitive prize money.
Despite a 10.2% decline in turnover, Victorian wagering remains the leading product in Australia, with $7.9 billion in turnoverโa figure still higher than pre-COVID levels but down from the $9.1 billion peak in FY22.