Leading wagering experts have lauded the transformative powers of World Pool at the 40th Asian Racing Conference in Sapporo, Japan, but also expressed concerns over regulatory challenges and taxation issues as the sport is buffeted by economic headwinds.
In a session titled Betting: ‘How Innovation is Changing The Future’, the Conference heard World Pool continued to play a major role in the viability and sustainability of racing around the world, but several jurisdictions continued to face significant obstacles.
Mr. Michael Fitzsimons, The Hong Kong Jockey Club Executive Director, Wagering Products outlined the key issues that must be addressed to overcome the illegal wagering market, suggesting that racing could learn from how the music industry had successfully collaborated in the fight against illegal piracy.
“As with the music industry, we must innovate together in a manner more compelling than the illegal alternative. To do this, our goal is for World Pool to provide coverage of the IFHA (International Federation of Horseracing Authorities) top 100 races.”
Mr. Fitzsimons believes World Pool has the potential to alleviate some illegal gambling concerns by leveraging more of the sport’s international Group 1 races.
“To meet the challenge of the illegal market, we can’t and won’t stop until we, too, have a convenient product with all the world’s best races in one place, available to a global audience, through the national pool operators in every country.”
The changing regulatory landscape was also explored. Entain Australia and New Zealand Chief Financial Officer and deputy Chief Executive Officer, Mr. Lachlan Fitt, said his company will need to adjust its wagering offerings if further government regulation and taxation come in.
"We are really at a tipping point in Australia where we don't have any more capacity to be able to absorb these increases. At the end of the day, our margins are already very thin. The only levers we have to pull are reducing marketing technology, promotional investment or passing on the costs to the customer. And all of those things are negative for the long run for the racing industry."
Mr. Fitt said new government advertising regulations could have a significant impact on wagering turnover, forecasting a potential decline in turnover of between 15% and 40%.
Racing Queensland Chief Executive Officer Mr. Jason Scott highlighted the need to better understand why customers bet with illegal and offshore operators. “To be honest, we need to learn from the illegal markets, illegal markets are growing. Why are people going to illegal markets? Yes, they use crypto, but the reason is most customers are conscious of return and because the illegal markets are able to offer a greater return through less take outs, less taxes etc … they can grow."
Mr. Alex Frost, Co-Chair of the World Tote Association, said World Pool “remains the most significant innovation in pool betting since the inception of pool betting. It was an immediate success with turnover increasing by more than 400% and the expansion of the World Pool since then has been breathtaking, quite frankly.”
Mr. Nick Smith, Director of Racing and Public Affairs, Ascot Racecourse, drew attention to the difficult betting landscape in the UK and the growth of sports betting. “Racing faces a big challenge to keep up with the opposition,” he said.
Mr. Martin Purbrick, Chairperson of the ARF Council on Anti-Illegal Betting and Related Financial Crime, joined a panel discussion, saying there were increasing challenges for licensed betting operators, including keeping pace with technology changes being utilised in illegal betting markets. “Excessive regulation is also driving consumers to offshore illegal markets,” Mr. Purbrick said.
