RUNNING. New Zealand Racing Board delivers record results

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Inside RUNNING Issue 17, 2007 New Zealand Racing Board delivers record results Audited figures from the New Zealand Racing Board for the 2006/07 financial year show the business continues to make

1 Inside RUNNING Issue 17, 2007 New Zealand Racing Board delivers record results Audited figures from the New Zealand Racing Board for the 2006/07 financial year show the business continues to make strong progress in delivering the financial platform for future industry growth. Total wagering turnover has increased 5.2% to $1.436 billion and operating surplus was $120 million, up more than 40% on last year, comprising of both the duty benefit implemented in August 2006 and a 9% improvement in operating performance for the year. Improvements to the domestic racing calendar and increased international race coverage are expected to deliver further growth as forecast through the internationalisation strategy, he added. Off the back of this result, the Board has distributed an additional $8.5 million to the Codes, over and above the previously committed $103 million. New Zealand Racing Board Chairman, Michael Stiassny said the Board s strong financial performance was a result of growth in both domestic and international racing product turnover. Domestic tote turnover reached an eight year high of $831 million, up 5.2% on the previous season, and overseas tote turnover increased 6.1% over the previous year, with the introduction of Thoroughbred racing from Western Australia adding a new wagering dimension for TAB customers. IN THIS ISSUE: New Zealand Racing Board hosts Equine Influenza forum p.2 NRL Grand Final dream comes true for TAB customer p.3 Increased Code distributions benefit industry participants p.4 Final Field a popular bet p.4 NZ Racing Board hosts MP Kate Wilkinson p.5 Lindauer Lawn a big hit with racegoers p.6 Raceday hospitality research supports development of raceday packages p.7 Trailblazer Awards recognise NZRB employee contributions p.8

New Zealand Racing Board hosts Equine Influenza forum Earlier this month, a broad contingent of representatives from the New Zealand equine and racing community attended an Equine Influenza forum

Among those attending were members from New Zealand s three racing Codes, New Zealand Bloodstock, Racing Clubs, Equine Health Association, MAF Biosecurity, Department of Internal Affairs, Breeders,

2 New Zealand Racing Board hosts Equine Influenza forum Earlier this month, a broad contingent of representatives from the New Zealand equine and racing community attended an Equine Influenza forum hosted by the New Zealand Racing Board at their Petone offices. Among those attending were members from New Zealand s three racing Codes, New Zealand Bloodstock, Racing Clubs, Equine Health Association, MAF Biosecurity, Department of Internal Affairs, Breeders, Trainers, Jockeys, Drivers, Royal Agricultural Society, Equestrian Federation and Riding for the Disabled. The CEO of the New Zealand Racing Board, Graeme Hansen, said the day was designed to elicit as much information as possible as to the impacts of Equine Influenza on the racing industry and the New Zealand economy. We also need to ensure that there are proper procedures and contingency plans in place across the whole of the equine spectrum in New Zealand in the event of Equine Influenza reaching our shores. At the meeting, MAF Biosecurity officials discussed both the positive and negative impacts of vaccination programmes and the wider implications for New Zealand in relation to trade. Whilst vaccination may prevent disease, equine influenza vaccines neither fully prevent infection or the transmission of the virus, and can mask the signs of infection in horses. MAF has the delegated authority to purchase registered vaccines but during the meeting officials indicated that they have no plans at this stage to go with a pre-emptive vaccination programme. After robust discussion, industry representatives acknowledged the difficulties associated with vaccination and agreed to work with MAF Biosecurity on these issues. There is still a lot of uncertainty around vaccination programmes and what this might mean in terms of preserving our EI free status for trade purposes. The scientific issues relating to vaccination programmes command careful deliberation, said Graeme. A number of wider issues were also discussed and the need for a co-ordinated industry contingency planning group was agreed. As a result, the New Zealand Racing Board is leading the establishment of such a group. This group will provide leadership to, and help equine communities and individuals lead, the prevention, planning, response and recovery to a possible equine influenza outbreak in New Zealand. The group s immediate priorities will be to fully understand the issues associated with the availability and distribution of vaccines, and MAF s ability to secure certain areas, for example, can we isolate the North from the South Island. The key to preventing or controlling an equine influenza outbreak in New Zealand will always be individuals in contact with horses doing the right thing. However, it s important that we have a cohesive plan in place to deal with this situation if it arises in New Zealand, added Graeme. For more information about Equine Influenza and to view presentations from the Equine Influenza forum visit

The NRL Grand Final competition winner Craig Maxwell NRL Grand Final dream comes true for TAB customer For most people having the opportunity to attend an NRL Grand Final is just a pipe dream, but

3 The NRL Grand Final competition winner Craig Maxwell NRL Grand Final dream comes true for TAB customer For most people having the opportunity to attend an NRL Grand Final is just a pipe dream, but for Craig Maxwell and his friend it was a dream come true following an investment in an NRL Multi bet. The TAB launched its NRL Grand Final competition in July this year, with a view to promoting NRL as an exciting wagering proposition as well as generating heightened interest in our own Vodafone Warriors. Craig, who just happens to be a devoted Manly Sea Eagles supporter, entered the TAB s prize draw to win flights, accommodation and tickets for two to the NRL Grand Final in Sydney by taking a Multi bet with three NRL legs at his local TAB in Henderson, Auckland. When Craig received the news that he d won tickets to the final he couldn t believe his luck. Not only had his team made it through to the final, he had won tickets to the biggest event on the NRL sporting calendar. Craig who had not visited Sydney since the early 1980s said the whole trip was an unbelievable experience. When we arrived at the stadium the atmosphere was electric, there was a sea of maroon and white and blue and purple. The Aussies really know how to put on a party, the fireworks and pre-match entertainment was amazing. Although the Sea Eagles didn t manage to pull it off, the shear thrill and excitement of being surrounded by 80,000 screaming fans in one of Australia s great sporting stadiums was out of this world, he said. Craig later told us that his trip was a once in a lifetime event, something he will never forget and probably never experience again unless he s lucky enough to win a similar competition next year. The NRL Grand Final competition, alongside a rejuvenated interest in the Vodafone Warriors performances saw NRL turnover reach a record high this season. More than 830,000 bets were sold on the NRL competition, 200,000 more than the previous season and more than one third of bets sold were Multi bets.

Increased Code distributions benefit industry participants Since the New Zealand Racing Board s inception, the Board has continued to deliver incremental funding to all three racing Codes - the

New Zealand Racing Board Chief Executive, Graeme Hansen said progress on the New Zealand Racing Board s performance and the net benefits of the re-alignment of tax duties has significantly exceeded

For example, the New Zealand Metropolitan Trotting Club has increased the stakes of the Christchurch Casino New Zealand Cup from $600,000 to $750,000 this year.

4 Increased Code distributions benefit industry participants Since the New Zealand Racing Board s inception, the Board has continued to deliver incremental funding to all three racing Codes - the benefits of which can be seen in a number of headline increases in stakes for the current season. New Zealand Racing Board Chief Executive, Graeme Hansen said progress on the New Zealand Racing Board s performance and the net benefits of the re-alignment of tax duties has significantly exceeded expectations. These improvements can be seen in each Code s growth in funding over the past five seasons. In the current season funding increases have enabled a number of headline increases in stakes. For example, the New Zealand Metropolitan Trotting Club has increased the stakes of the Christchurch Casino New Zealand Cup from $600,000 to $750,000 this year. Similarly, New Zealand Thoroughbred Racing is to boost returns to owners by more than $2 million in the current season, through extending the payment of riders fees from 1 February Fillies, Mares and Stayers will benefit from an additional $650,000 in winning stakes for key races, he added. Net stakes for all three racing Codes have increased by 30% since 2003/04. Further increases are expected in the seasons ahead as the Board looks to accrue greater earnings through new revenue streams which enhance the Board s ability to deliver increased distributions to the Codes - the benefits of which will flow through to the industry in the form of increased race stakes, which in turn means higher fees for successful trainers, jockeys and drivers. Final Field a popular bet In the past season the number of Final Field books offered by the New Zealand TAB for New Zealand and Australian Thoroughbred, Harness and Greyhound racing product increased by 5% as a growing number of customers are choosing this bet type to guarantee the return on their investment. TAB Harness Racing Bookmaker Steve Richardson said Final Field gives punters all the advantages of fixed odds betting as the price on your ticket is the price you get if your runner comes in, although deductions may apply. Final Field books generally open on selected races three days before the race is due to start and remain open until the race closes. When a scratching occurs the book is suspended while the deduction is calculated and then re-opened at the new odds to reflect the new field. All Final Field Win bets taken on scratched runners are refunded so customers can have confidence when placing bets two to three days out from the start of the race, added Steve. At this stage the New Zealand TAB only offers Final Field books on Win products. However, customers can combine a Final Field bet in a Multi bet to multiply their winnings. Successful Final Field Multi bets can win up to $250,000 regardless of how many legs are taken.

5 NZ Racing Board hosts MP Kate Wilkinson National list MP Kate Wilkinson pictured with Trackside Editor Elena Ash. National list MP Kate Wilkinson spent five days at the New Zealand Racing Board in August as part of the New Zealand Business and Parliament Trust s Business Study Programme. Over the course of the five day attachment, Kate met with members of the New Zealand Racing Board s senior executive team learning about the many facets of the New Zealand Racing Board s operations including broadcasting, racing and wagering, distribution networks and technology. Kate s visit concluded in Hawkes Bay where she attended the Mercedes Thoroughbred Awards Dinner and premier race meeting, the Mudgway PartsWorld Stakes. On completing her attachment Kate said that she was amazed at the magnitude of the Racing Board s operations and was impressed by the organisations operations at all levels.

Lindauer Lawn a big hit with race goers For many racegoers New Zealand Cup Day at Addington is all about the fashion and the Lindauer Lawn is the only place to be.

6 Lindauer Lawn a big hit with race goers For many racegoers New Zealand Cup Day at Addington is all about the fashion and the Lindauer Lawn is the only place to be. Addington Race Club Chief Executive Officer, Mike Godber said the Club s overarching objective for the Lindauer Lawn was to provide alternative entertainment for people attending Cup day. The Lindauer Lawn concept first started in the mid 1990 s when the Club engaged a band to play in the lawn area and the fashion registration marquee was located close by. Essentially, this set up provided a nice alternative for those who didn t want to go indoors to the bars, said Mike. From its humble beginnings the fashion aspect of the day has grown significantly over the years. The Club now boasts a 40 x 20 metre fashion marquee showcasing the very best of catwalk designer fashion. This year the marquee will be positioned alongside the entrance to the Lindauer Lawn providing greater opportunities for those on the lawn to engage in the catwalk heats. Tote facilities are available on the lawn for those interested in the racing and a 40 x 40 square metre big screen is positioned in close proximity. Bands and entertainment play an important part of the Lindauer Lawn atmosphere and we are always keen to showcase new talent, Mike added. The Club runs its own catering operation and has invested heavily in dressing the area, providing good security and expanding eating operations on the lawn. The Club works closely with Crown Public Health, the Christchurch City Council Licensing team and the Police to encourage young people to drink responsibly. Free water and sun block is available and this year there will be a juice bar adjacent to the lawn. The success of the Lindauer Lawn has encouraged the Club to develop another area to compliment the Lawn. This is the Stella Artios beer garden which is on the opposite side of the Birdcage to the Lindauer Lawn. The beer garden is smaller than the lawn and incorporates the ground floor of a stand. Tickets for the beer garden a strictly limited to 2000 and retail at $50 each. At one point, ticket sales for the Lindauer Lawn reached 5,000. However, the Club has since placed a limit of 4,000 on ticket sales to ensure a safe and more enjoyable environment. The Lindauer Lawn entrance price for 2007 is $55 tickets sold out in early October. While New Zealand Cup Day and these areas sell themselves the Club has put a great deal of effort into stimulating presales over the past two years through internet and telephone channels. In 2004 telephone presales by ticket numbers reached 5,758. This number increased to 7,485 in 2005 with more than 600 tickets purchased through the internet. In 2006, 8,119 tickets were pre-sold, 1,762 of which were purchased through the internet. These numbers exclude ticket sales for corporate hospitality, private suites and functions. The Lindauer Lawn has been the key driver in the Clubs strategy to attract new and younger patrons to New Zealand Cup Day. The economic impact study commissioned by the New Zealand Racing Board in 2006 showed that almost 58% of those attending New Zealand Cup Day at Addington were under 30 years of age which illustrates the strategy is working.

Raceday hospitality research supports development of raceday packages Small hospitality packages to share with family and friends, the demand for hospitality at themed events and the strong desire to

7 Raceday hospitality research supports development of raceday packages Small hospitality packages to share with family and friends, the demand for hospitality at themed events and the strong desire to research and book on-line are just some of the key themes emerging from raceday hospitality research commissioned by the New Zealand Racing Board in April. Research agency IER surveyed more than 1,283 customers to assess the customer appetite for a range of raceday hospitality packages including Christmas themed events, tailored hospitality packages for Cup Days, Destination Summer Holiday Racing events and Regional Picnic days, plus other themes. Close to three quarters of respondents said they attended race meetings as a general spectator or social racegoer. 56% of male respondents attended in a punting capacity compared to 34% of females. 42% of people surveyed said they attended more than six race meetings each year. The Board has shared the findings of the research with race clubs around the country and is working with the clubs to develop a series of smaller social packages to be enjoyed with friends and family, and corporate packages for Premier, Cup and Carnival race days. This research, combined with the lack of small marquees available from hire companies has led to the New Zealand Racing Board s investment in small marquees. The first of the industry assisted small raceday packages will be ready for the new Christmas at the Races programme in November this year. Customers will be able to enjoy a gourmet picnic hamper and marquee for as little as $40 per head. More information can be found at New Zealand Racing Board On-Course Marketing & Events Manager, Janice Hill said gaining a greater understanding of what our customers want from their race day experience will help us to develop a range of hospitality packages that can be used by clubs as a vehicle to drive on-course attendance and increase non-wagering and on-course wagering revenue growth. Raceday packages come in many shapes and sizes and the findings from the research helps us to assist clubs to tailor packages to suit a variety of customer needs. More than 76% of customers surveyed said they would be keen to try a small social package with friends and family and 20% said corporate marquees and themed racing events and would have high appeal. One of the key barriers to people not choosing raceday packages is the fact that customers have little knowledge of the product or perceive raceday packages to be too expensive. A good proportion of the people we surveyed said they could be converted to package customers if they knew more and were able to research and purchase packages online, said Janice.

8 Trailblazer Awards recognise NZRB employee contributions In September, twenty-four New Zealand Racing Board employees scooped up awards at the Board s annual Trailblazer Award ceremony in recognition of their outstanding contribution to the business. New Zealand Racing Board awards co-ordinator, Jenna Rogers said the Trailblazer Awards were first introduced in 2002 as part of the Board s employee reward and recognition programme. Each year, staff are invited to nominate their peers for an award in one of six categories aligned to the New Zealand Racing Board s vision and values teamwork, passion, integrity, valuing people, innovation and dynamism. We received an overwhelming response to our call to action. More than 100 nominations were received which made the judging process extremely difficult. The judging process involved representatives from teams across our five regional offices coming together to vote for their preferred nominees based on the written recommendations from staff. The entire process was overseen by an independent facilitator to ensure there were no discrepancies, said Jenna. This year, more than 70 New Zealand Racing Board employees attended the Trailblazer Award ceremony held in Auckland. Our vision and values underpin the way we operate our business and it s very pleasing to see so many staff nominate their peers for an award, said Graeme Hansen, New Zealand Racing Board Chief Executive. In the past year, we have experienced considerable change through establishing our alliance with Tabcorp, implementing a new financial management system and enhancing our retail network. We are delighted to be able to recognise some of the individuals involved, Graeme added Trailblazer Award winners DYNAMISM Byron Mabbett Software Developer Mandy Toogood Trackside Executive Producer INNOVATION Janice Hill On-Course Marketing & Events Manager Anthony Crummy Manager, Management Reporting PASSION Kelly Warr Central Region Director James Bowden Phonebet Operator INTEGRITY Mark Rosanowski Trackside Presenter SallyAnne Jenkins Phonebet Operator VALUING PEOPLE Judy Reed Assistant Manager, Phonebet Sandy Brockelsby National Racing Services Manager TEAMWORK Waikato Trackside Team: Andrew McGougan Daniel Kil Troy Michie Matthew Blackmore James Blackwell Felicity Holloway Danny Hunter Mark Claydon Karl Hiestand Nathan Rouse Tara Hughes David Owen Interactive Services: Pete Evans and Karen Jackson Inside Running is published by the New Zealand Racing Board. ISSN: Jackson Street, Petone, PO Box 38899, Wellington Mail Centre, New Zealand Phone: (+64 4) Fax: (+64 4) insiderunning@nzracingboard.co.nz

RUNNING. Punters and racing industry benefit from Tabcorp agreement

RUNNING. Punters and racing industry benefit from Tabcorp agreement Inside RUNNING Issue Punters and racing industry benefit from Tabcorp agreement 16, 2007 Nearly three months into the New Zealand Racing Board s agreement with Tabcorp and the benefits of commingling are