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World's biggest punter moves stops betting on Australia
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The Advertiser
June 08, 2012
11:30PM
Zeljko Ranogajec, Australia's biggest punter, has stopped betting $1 billion a year through he TAB system. Picture: Craig Greenhill
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THE golden glow from the visits of Black Caviar was yet to fade before news broke that the South Australian racing industry had taken its single biggest financial hit in history.
The state's three racing codes are slowly coming to terms with the devastating loss of turnover from the world's biggest punter.
Tasmanian-born Zeljko Ranogajec has moved overseas and ceased betting $1 billion a year through the Australian TAB system.
The man nicknamed the Loch Ness Monster due his rare public sightings was betting over $70 million a year through the SA TAB.
That money was generating around $4 million in revenue per annum for the three codes.
The SA TAB - initially bought by UNiTAB in Queensland and now owned by Tatts Group in Melbourne - is the major funding source for racing in SA.
TAB funding models for the racing industry are different in every state but it is likely the SA codes have been hardest hit by "The Zeljko Factor".
The local thoroughbred, harness and greyhound codes have taken an immediate hit in revenue of around 10 per cent.
The loss could be ongoing as Ranogajec might never return to betting in Australia due to a dispute over a massive tax bill from the Australian Tax Office. News of the loss of funding has been slow to disseminate to participants. Bad news usually travels fast - and is spread by those not directly affected. In this case, everyone involved in racing is affected. The question is to what degree.
THOROUGHBRED RACING
JIM Watters, chief executive of Thoroughbred Racing SA, held senior roles in racing administration in his home country of New Zealand before crossing to Australia just over three years ago.
Watters is not downplaying the significant loss of revenue to his sport and has indicated "prizemoney stagnation" is a possible consequence.
"We're in the middle of doing our budgets for 2012-13 and we've changed them as a consequence of our revenues being down," Watters said.
"If this had occurred before race list fees were introduced it would have been catastrophic. Now the impact is that it will limit what we were looking to do in terms of prizemoney increases."
Watters said maintaining the status quo would be a desirable achievement.
"Bottom line is we need to work our budgets," he said.
"We've advised our shareholders (SAARC and SAJC) and we're working out how the industry doesn't go backwards."
HARNESS RACING
JOHN Lewis is a former general manager of the Australian Hotels Association who became chief executive of Harness Racing SA 18 months ago.
Lewis is loathe to mention specifics about the impact on his sport but has confirmed it will probably be "hardest hit" of the three codes.
"We had been monitoring the situation for some time but it was all very immediate once it happened," Lewis said. "There aren't too many businesses that could lose it's biggest customer and not feel it severely.
"But I don't want to panic anyone in our industry because we have a number of positives happening."
Lewis says the re-development of Globe Derby Park is the sport's biggest good news story, while the proposed introduction of innovative race events will hopefully reinvent the sport.
Recently released program dates by HRSA indicate that Tuesday night meetings at Globe Derby will be cut from September.
The situation will be reviewed again in three months.
Lewis says that decision is not directly linked to the loss of the Zeljko money, however industry insiders say it is the first inevitable consequence of a significant revenue hit.
GREYHOUND RACING
IT was 5.15pm on the Friday of a particularly bad week and Matt Corby was looking to head home, grab a beer and watch the footy.
Just then an e-mail popped up.
"It was the news that Zeljko was leaving the system," Corby, chief executive of Greyhound Racing SA, said.
"I really wished I'd waited to read it on Monday."
GRSA was the first code to jump on the front foot and advise it's participants that its biggest punter had upped and left.
They chose an industry newsletter to convey the bad news, although the full consequences are yet to be revealed. "We want to talk openly about things," said Corby, who joined GRSA from the Sandown club in Melbourne 20 months ago. "We believe we will be the least hit of the three codes but no one is jumping for joy.
"We were starting to travel quite nicely and this is a big bump in the road. We will all have to make some tough choices," Corby said.
Originally Posted by p plater
