December 2018 - Industry Update from John Allen
It’s been a busy month or so for the racing industry since my last update to you, with a number of highlights, including Melbourne Cup and Christchurch Cup Week.
TAB turnover for the Melbourne Cup race was in the region $10.6 million, equal to the record turnover in 2015, with the winner, Cross Counter, delivering the best possible result on the race for the Board. Despite enormous pressure on our systems at times - at our peak 38,000 customers were on the TAB digital channels - our technology held up well, up to the race, albeit with a short period of about half an hour from the race where the app was slow.
And while the results for the TAB during Christchurch Cup and Show were mixed, it was a great week of racing and wonderful to see such strong crowds supporting our three codes.
October 2018 - Messara Submission and Business Update from John Allen
As you will know, this coming Friday is the last day to provide feedback to the Department of Internal Affairs (DIA) on John Messara’s Review of the New Zealand Racing Industry, which was commissioned earlier this year by the Minister of Racing, Rt Hon Winston Peters.This is an important opportunity to have a say on the future of our industry. The Messara Review has started a timely conversation to achieve real and lasting benefit to the industry and punters.
September 2018 - Introducing NZRB's AML/CFT Project
One of our major priorities over the next 12 months is to ensure the TAB has systems and controls in place to detect and deter money laundering and terrorism financing through betting. Did you know about $1.35 billion from the proceeds of fraud and illegal drugs is laundered through everyday New Zealand businesses like the TAB every year? We need to work with you to make it harder for criminals to profit from and fund illegal activity.
The requirements of the act
From 1 August 2019, we must comply with the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, which requires us to know more about our customers, and sometimes about where their money comes from. There are other requirements, such as reporting our AML suspicions, monitoring betting activity, vetting staff and bringing existing customer records into alignment.
Who is involved?
Everyone. All staff including NZRB, TAB board venues, agencies, pubs, clubs and oncourse terminal operators and supervisors, as well as all TAB customers.
What does this mean for your club?
All customer-facing staff must be aware of what AML/CFT is and what’s required to achieve and remain compliant with the Act. They will require advanced training on our AML/CFT requirements as well as any system or process changes.
What does this mean for customers?
Customers must adhere to our obligations if they want to continue to bet with us. Some will have to provide evidence of their identity, and in many cases evidence of the legitimate source of their spend depending on the size of the bet. This won’t apply to small bets oncourse, but for everyone making large bets and all our account customers.
How we'll support you
Our AML/CFT project team will support your club through the changes using a mix of training, communications and awareness pieces. You’ll know what you need to do and by when. Our engagement has already begun as we work to understand where we are now, where we need to be, and what the gaps are.
What we need from you
There are some specific questions we need to ask to help us discover:
- More about the contractual arrangements between terminal operators/supervisors, consortia and clubs, to inform our risk assessment and to assist in understanding the overall control environment these staff operate in.
- More about the employment arrangements that apply (who holds the employment contract(s), pays staff, employs staff).
- More about current vetting and training processes and record keeping.
Shortly we’ll be contacting a selection of approximately 15 clubs to arrange a time for us to discuss the above in more detail and are happy to do this in person, by phone or by email. For the rest of you, we’ll be in touch again in October. An infographic about the AML/CFT project is here for more information. Please don’t hesitate to get in touch with our Government and Industry Relationship Manager, Bill de la Mare, if you have any questions or with the project team at [email protected].
July 2018 - Statement of Intent Update from John Allen
The New Zealand Racing Board’s Statement of Intent, which outlines our strategic direction, priorities and financial forecasts through to 2020/21, has been formally signed off by the Government.A range of ambitious priorities has the NZRB targeting net profit growth of 52% over the period of the SOI - from $142m in 2017/18 to around $220m in 2020/21.Distributions for the racing codes for 2018/19 are budgeted at $151.6 million, a $0.8 million increase on last year and 10.2% increase on 2016/17. This includes the $12 million of additional funding targeted at increasing stakes across the 2017/18 and 2018/19 seasons that has been approved by the Board.
As profitability increases, the expectation is code distributions will increase to $172.2 million in 2019/20 and a further $17.8 million in 2020/21.The 2017/18 season has been a year of significant transformation and delivery for NZRB. We’re delivering on our financial targets, making good progress in the delivery of our strategic initiatives and delivering on our financial commitments to the racing industry.
We’ve made good progress with our key strategic initiatives - fixed odds betting platform, customer and channel improvements, racefields legislation and the optimise the calendar programme that will, once fully implemented significantly improve the customer experience and we expect will increase annualised net profit significantly.
Looking ahead, we are continuing to explore our broader strategic options that may provide improved returns and address the challenges inherent in our industry. There is significant potential for further growth, however, we recognise that these strategic options may be potentially affected by the review by Australian racing expert, John Messara, commissioned by the Racing Minister, Rt Hon Winston Peters. We look forward to seeing the outcomes of Mr Messara’s review and working with the Government and the wider industry to set racing on a sustainable path for the future.
As the main financial provider for the racing industry, NZRB is highly aware of our need to perform and deliver and we are excited about the opportunities ahead. What we have achieved so far, what we are doing now and what we are planning for the future will deliver its people an enduring livelihood and ensure New Zealand racing is successful on the world stage.
I have attached a brief summary of the SOI and you can read the full document on the NZRB website. I encourage you to share it with your committees, Boards and members. If you have any questions about the SOI feel free to contact me or our Head of Government and Industry Relations, Ian Long ([email protected]).