Victorian racing remains the product of choice as financial health continues to improve

Today’s release of Racing Victoria’s (RV) 2025 Annual Report has reaffirmed Victorian Thoroughbred Racing’s (VTR) position as the industry leader with the state playing host to the most watched, wagered and attended race meetings in Australia throughout the Financial Year ended 30 June 2025 (FY25).

The 2025 RV Annual Report noted that:

• Despite macroeconomic pressures, VTR remained the number one wagering product in Australia in FY25 with $7.611 billion in betting turnover nationally from domestic markets, headlined by the Lexus Melbourne Cup which was again the nation’s single most wagered race by a considerable margin;
• 1.16 million people attended Victorian race meetings across FY25 (+4% year-on-year), with the 2024 Melbourne Cup Carnival at Flemington delivering the four highest attended race days in the nation;
• VTR remained the most watched racing product nationally, headlined by 5.5 million viewers across the 2024 Melbourne Cup Carnival via the 9Network. It remains the only racing product available daily across free-to-air and subscription TV, SKY Racing, and digital racing and wagering platforms;
• The 2024 Spring Racing Carnival generated $785.1m in economic impact and over 320,000 inbound visitor nights for the state of Victoria. With 26 Country Cups featured alongside 21 Group 1 races, it remains one of the largest and most geographically diverse major sporting events in the country;
• Victoria’s world-first veterinary protocols continued to set a new global safety standard with the 2024 Lexus Melbourne Cup and Spring Racing Carnival run without serious injuries. This became five consecutive Melbourne Cups without incident after the safe running of the 2025 edition last week; and
• RV invested $5.94 million into equine welfare across FY25, taking its total investment since the 2017 introduction of a contribution from prizemoney to $44 million. Headlining the FY25 investment was $800,000 in emergency drought relief to support over 1,800 eligible thoroughbreds statewide.

Also featured within the Annual Report is RV’s FY25 financial statements which detailed an improved financial position from FY24 and the pathway for RV to return to break-even whilst continuing to invest in growth.

With the wagering market continuing to soften through the first half of FY25, work to right-size the RV business model intensified as part of a business-wide efficiency program that gathered momentum in the second half.

RV ultimately recorded a normalised net deficit for its underlying business performance in FY25 of $2.532 million, which was slightly better than budgeted. This comes after adjustments to exclude one-off accounting and non-business-as-usual activity including restructure costs which will deliver ongoing future benefits. 

The statutory reported net deficit of $8.885 million for FY25 was an improvement on the $11.834 million reported net deficit in FY24, which came after a run of 11 consecutive surpluses.

The financial result comes largely through an objective to maintain returns to industry stakeholders, including the $316 million in prizemoney and bonuses on offer, despite macroeconomic headwinds and cost of living pressures on household income.

Central to the strategy of continued investment and thereafter the improved financial position from FY24, was RV’s focus on driving internal efficiencies through a reduction in headcount and expenditure, as well as the restructure and integration of its media business, Racing.com Media, under RV operational management.

These initiatives have realised a cumulative $13.484 million reduction in RV operational expenditure across FY24 and FY25. With the major business restructure only occurring late in FY25, further annualised efficiencies are forecast in FY26, thus ensuring RV can maintain key investments in prizemoney, club funding, equine welfare, integrity, infrastructure, and public engagement. 

FY25 marked the transition from the historic VicTAB Joint Venture to a new multi-year industry distribution model which provides funding diversification and long-term certainty to RV and the other racing codes. In a result that outperformed underlying wagering trends, combined Government and wagering revenue declined only marginally in FY25 by 1.1% to $421.821 million.

Whilst wagering turnover declined by 4.0% to $7.611 billion in FY25, VTR outperformed other racing product nationally and remained 8.4% above pre-COVID levels. Significantly, wagering turnover bounced back in the second half of FY25, a trend which has continued into FY26 and ultimately saw all-time wagering turnover records broken for last week’s 2025 Melbourne Cup.

RV’s net assets at the end of FY25 are $176.552 million providing security for ongoing investment in the industry, whilst RV continues to become a leaner and more efficient business, and growth results are realised.

Quotes attributable to RV Chief Executive, Aaron Morrison

“Our focus in FY25 was on improving promotion of the sport and engagement with a broader audience, striving for greater transparency and collaboration with industry stakeholders, ensuring our business model is lean and efficient, and maximising returns to participants and those who invest in our sport.

“Despite the softer macroeconomic and wagering landscape, an environment of rising costs and inflation, and significant structural change within our funding framework, we delivered a slightly better-than-budgeted financial result and took important steps to restructure, refocus and right-size our business while maintaining strong returns to owners, participants and clubs.

“The results of the last financial year, and those realised thus far across a brilliant 2025 Spring Racing Carnival, demonstrate that we are on the right trajectory, balancing prudent financial management with ongoing investment to grow and support our industry and its key people and stakeholders.

“There is plenty of cause for optimism in Victorian racing. Attendances were up across the board in FY25 with the nation’s highest attended race meetings, wagering trends are heading in the right direction and our media framework is helping to showcase our racing to the widest audience of any jurisdiction across Australia.

“A safe Spring Racing Carnival for a fifth consecutive year has again helped protect confidence in racing’s product, while the industry’s significant contribution to the Victorian economy is highlighted by $785 million in benefit delivered statewide during spring via our major events and 26 Country Cup meetings.

“As we look ahead to FY26, our focus will be on telling our stories and growing engagement with racing across a broader audience, a continuation of prudent financial management, and ongoing support for, and engagement with, participants and owners.”

CLICK HERE to view the 2025 RV Annual Report.