Australia’s racing industry has issued a united warning to the Federal Government, arguing proposed gambling advertising reforms could have severe unintended consequences for racing, regional communities and the fight against illegal offshore bookmakers.
Appearing before a Senate inquiry into the proposed legislation, Racing Australia, Racing Victoria and Racing NSW urged lawmakers to avoid what they described as a disproportionate response that could significantly damage an industry supporting more than 100,000 jobs nationwide.
Racing Chiefs Present United Front
For the first time in years, the chief executives of Racing Australia, Racing Victoria and Racing NSW appeared together before the Senate committee to outline the industry’s concerns.
Racing Australia chief executive Paul Eriksson, Racing Victoria chief executive Aaron Morrison and Racing NSW acting chief executive Graeme Hinton argued they support evidence-based measures to reduce gambling harm but warned further restrictions could unintentionally strengthen illegal offshore wagering operators.
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Eriksson told the committee:
“The unintended consequences of well-intended Government regulation fuelling illegal black markets should not be underestimated.”
He added that expanding the reforms further—particularly through additional advertising restrictions or banning promotional offers such as bonus bets—would be “catastrophic” for Australian racing.
Industry Says Racing Is Different
A central part of the industry’s submission was that racing should not be treated the same as other professional sports because wagering directly funds the sport.
According to Racing Australia, approximately 85 per cent of racing’s funding comes from wagering turnover, with those returns supporting prizemoney, participants, breeding, race clubs and thousands of regional jobs.
Morrison also distinguished between illegal inducements to open betting accounts and promotions offered to existing customers.
“We would talk about generosities as being different from inducements.”
“We see those as being legitimate promotional tools that enhance the product offering.”
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Senate Inquiry Dominated by Gambling Harm Debate
The hearing came after emotional evidence from former NRL player Luke Bateman, who alleged he had been offered illicit drugs and other incentives by bookmaker VIP managers during his gambling addiction.
Those allegations prompted senators to question racing executives about the industry’s reliance on promotional offers and wagering incentives. Betting companies have denied the allegations and called for evidence to support the claims.
Despite the difficult questioning, racing officials maintained their position that Australia’s regulated wagering market must remain commercially viable to prevent customers moving to unlicensed offshore operators.
Government Yet to Make Final Decision
The Senate inquiry is examining the Federal Government’s proposed Interactive Gambling Amendment (Gambling Reform) Bill 2026, which includes tighter restrictions on gambling advertising across television, radio, online platforms and sporting broadcasts.
The committee is expected to deliver its report later this month before the legislation progresses through Parliament.
For Australia’s racing industry, the outcome could have long-term consequences well beyond advertising.
Industry leaders insist they support responsible gambling reforms, but argue policymakers must strike a balance that protects vulnerable Australians without undermining one of the country’s biggest sporting and regional industries.
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