Oct 10 2018
The 'richest turf race in the world', The Everest, has made headlines over the year with its grand prize pool of $13 million and its controversial marketing methods. According to Australia’s largest industry research company, IBISWorld, the Horse and Dog Racing industry is on a decline. However, analysts believe The Everest could help reignite interest in the industry.
Originally seen as Sydney’s answer to the Melbourne Cup, the race has been a major source of competition for turf races across the country and worldwide. The Everest has generated an international audience with its substantial prize pool and the local and global buyers it attracts.
“The Everest is held right in the middle of Melbourne’s Spring Racing Carnival. However, its prize pool is nearly double that of the Melbourne Cup, which has a prize pool of $7.3 million in 2018, up from $6.2 million last year,” said IBISWorld Senior Industry Analyst Tommy Wu.
The inaugural 2017 Everest event turned heads with its $10 million prize pool. This saw the betting turnover exceed budgeted figures by over 60% and wagering turnover on the race meeting top $75 million globally.
“Tabcorp alone recorded wagering of just under $30 million for the meeting, with about $12 million on the race itself, making it the biggest race and meeting in Sydney. As The Everest and the race meeting continues to grow in the lead up to its second year, wagering turnover on the race itself is expected to exceed $15 million,” said Mr. Wu.
IBISWorld analysts believe that despite Everest’s larger prize pool, older and more traditional racing enthusiasts will likely continue favouring the Melbourne Cup. However, The Everest has successfully tapped into a younger market with its advertising and marketing campaigns. According to Racing NSW, 60% of pre-sale tickets for The Everest in 2017 were bought by people under 30 years old.
“Racing NSW and the Australian Turf Club invested heavily in marketing in 2017, advertising the race as bold and exciting, and generating significant interest. A crowd of over 33,500 turned out at Randwick last year, one of its largest crowds in recent history. The crowd is expected to be even bigger this year in light of recent publicity and marketing strategies,” said Mr. Wu.
According to IBISWorld, the race has helped generate greater interest in Australian and Sydney horseracing, positively affecting the Horse and Sports Betting industry and the Horse and Dog Racing industry.
“Declining consumer interest and strong competition for on-course gambling from online and mobile betting platforms have driven down horseracing attendances over the past decade. For example, Melbourne Cup attendances have fallen consistently from their peak in 2006,” said Mr. Wu.
Bookmakers will no doubt welcome the additional wagering turnover generated from the race day, and the significant attention The Everest has made it an event that racing authorities and racetracks can build their spring calendars around.
“The Everest is expected to continue setting records as it grows and expands into a younger market. The event may provide the spark that breaks the long-term trend of declining attendances at horseraces."
IBISWorld Industry Reports used in this release:
IBISWorld Media Relations Representatives – Anne Wild & Associates Pty Ltd
Tel: +61 2 9440 0414
Mobile: 0431 781 445