2019 ANNUAL REPORT - GRNSW
2019ANNUALREPORTMYSTIC RIOT2 0 18 C H A M P I O N
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CONTENTSChairperson’s Report04CEO’s Report06Summary of Financial Performance08Welfare and Education09Operations11Track Maintenance12Media, Commercial and Marketing14Wagering16Legal and Policy18GIPA Report20Financial Statements22www.grnsw.com.auwww.thedogs.com.au GRNSW 20192019ANNUALREPORT3
CHAIRPERSON’SREPORTAs the recently appointed Chair of Greyhound Racing NSW (GRNSW), I am pleasedto deliver this report covering the period from 1 July 2018 to 30 June 2019. Indoing so, I acknowledge the outstanding contribution to the organisation and theindustry more broadly of my predecessor, the Hon Morris Iemma, who was Chairfor the entirety of the reporting period.In addition to funding its operations, GRNSW has worked closely with GWICthrough this major industry transition. There is a lot more work to do, and we lookforward to providing further assistance to GWIC for the betterment of the industryand collaborating on key initiatives including whole-of-lifecycle greyhoundtracking, rehoming, participant training and education, and track safety.In his stewardship of the Board from mid-2017, and his role as head of theGreyhound Industry Reform Panel immediately prior to that, Morris was resolute inputting animal welfare at the heart of greyhound industry reform and establishinga solid framework to promote a sustainable and prosperous future for allparticipants prepared to support positive change.The Greyhound Racing NSW Strategic Plan 2018-2021 (the ‘Plan’), which providesa blueprint for our organisation in the new structural landscape, was publiclyreleased on 18 October 2018. The Plan was informed by engagement with a broadcross-section of the industry and other key stakeholders and sets out a bold visionfor greyhound racing in NSW to be embraced as socially responsible, world-leadingracing entertainment. It is built around three pillars - Responsible, Competitive,Sustainable - underpinned by 11 goals and 21 specific initiatives aimed at achievingthe highest standards of animal welfare in racing, delivering commercial growth tosupport jobs and making a meaningful contribution to the communities in whichwe operate. Progress related to the goals and initiatives in the Plan are includedthroughout this report.With the implementation of GRNSW’s new strategic plan having commenced, andthe separation of the regulatory and commercial functions of greyhound racingin NSW now complete, Morris leaves the organisation in a much stronger positionthan when he started. We wish him all the best in his future endeavours.One of the highlights and best examples of the revival of our industry in 2018-19was the inaugural staging of the world’s richest greyhound event, the MillionDollar Chase. Thanks to the support of the NSW Government and major sponsorLadbrokes, Wentworth Park played host in October 2018 to a greyhound race thatsaw the connections of the Dubbo-reared Mystic Riot collect a first prize of 1million, an event that would have seemed highly improbable a year earlier.The Million Dollar Chase Final, which set new wagering and attendance recordsfor greyhound racing in NSW, was the culmination of a race series staged overtwo months at 12 NSW racetracks, including 11 in regional areas. It provided ahigh-profile vehicle to promote GRNSW’s Greyhounds As Pets (GAP) rehomingprogram and delivered a tremendous morale boost to all industry participants asan example of what can be achieved if welfare and integrity standards exceedcommunity standards. At the close of the reporting period, planning was welladvanced for the second staging of the Million Dollar Chase. Congratulations go toeveryone involved in successfully delivering this amazing event.As part of significant structural reform, from 1 July 2018 the responsibility forthe regulation of greyhound racing, including the oversight and enforcement ofmatters relating to animal welfare and integrity, was transferred to the newlycreated Greyhound Welfare and Integrity Commission (GWIC). The establishmentof GWIC was key amongst the 122 recommendations of the Greyhound IndustryReform Panel. Some of the specific functions that transferred to GWIC fromGRNSW in the past 12 months include the registration of greyhounds and industryparticipants, and the employment of race stewards, inspectors and veterinaryofficers.4GRNSWAN N UAL RE P ORT 2019New track standards and upgrades were a key focus of GRNSW’s safety andwelfare activities in 2018-19. With the assistance of research and industry partnersincluding the University of Technology, Sydney (UTS), NSW Greyhound BreedersOwners & Trainers Association (GBOTA) and GWIC, GRNSW developed newminimum safety standards for greyhound racetrack design and construction inNSW. The aim of this work is to reduce the number and severity of greyhoundracing injuries and on-track euthanasia incidents, which is critical to maintainingindustry and community confidence going forward. While the research and thework on track safety is an ongoing, long-term project, it is an area where GRNSWbelieve tangible benefits are achievable in the near-term. We thank the NSWGovernment for its 30 million commitment over five years to support crucial tracksafety work, which funded track rebuilds at Gosford and Gunnedah in the reportingperiod.One of the most pleasing aspects of the 2018-19 year was the increase in thenumber of greyhounds rehomed over the previous year under GRNSW’s GAPprogram and through our associated rehoming initiatives. Along with the spotlighton the program provided by the Million Dollar Chase event, other key drivers ofimprovement included: A new Regional GAP program to expand its reach Additional GAP NSW adoption days and events Enhanced partner schemes with other rehoming organisations T he appointment of Dr Alicia Fuller as General Manager of GAP NSW in May2019
T he appointment of Australian sporting star Tim Cahill as GAP NSWambassador in June 2019.While the GAP NSW program will continue to be a central focus of GRNSW’scommitment to animal welfare across the entire lifecycle of racing greyhounds,the introduction of the Race Injury Rebate Scheme in the past year is also key toimproving animal welfare outcomes and preventing unnecessary instances ofeuthanasia. This scheme provides greyhound owners with the financial supportneeded to ensure greyhound injuries are treated, including through surgicalprocedures where required. The Scheme strongly aligns with our pillar to act as aresponsible industry.An Expression of Interest process for the GRNSW Board was conducted late in2018-19 and resulted in applications from some exceptional candidates withdiverse skills and experience. They have since formed a refreshed Board that I amexcited to work with in the continued renewal of this important NSW industry. Thenew board members are Helen Moore, Marissa Cooper and Kevin Gordon, and I lookforward to them bringing their combined business and racing industry experienceto the organisation. They join Matthew Waring, whom I am delighted will serveanother term, and Annette Mullen, who is continuing her current term. And finally,on behalf of the board and executive of GRNSW, I thank outgoing Deputy ChairYvonne Howie for her tireless commitment to the role over the past two years. Wewish Yvonne all the best for the future.“One of the most pleasingaspects of the 2018-19year was the increase inthe number of greyhoundsrehomed over the previousyear under GRNSW’s GAPprogram and throughour associated rehominginitiatives.”In summary, in 2018-19 GRNSW was the leader for various bold and excitinginitiatives that made the world of greyhound racing sit up and take notice of theresurgence of the industry in NSW. I congratulate GRNSW CEO Tony Mestrov andhis team for their vision and execution. There remain challenges on the horizon,including the number of racing greyhounds as a result of a downturn in breedingassociated with the industry ban in 2016 and changes in the wagering environmentthat have affected revenue. However, there has never been a better time to be partof the greyhound industry, and I look forward to another year of achievements in2019-20.HUGH ARMENISCHAIRPERSONGRNSWAN N UAL RE P ORT 20195
CEO’SREPORTFollowing a year of rebuilding and consolidation in 2017-18, I am delighted toreport that 2018-19 was punctuated by a series of positive initiatives and targetedactivities that continued the revitalisation of greyhound racing in NSW andcontributed to major enhancements in key safety and welfare indicators.Chief amongst these were the following highlights, which were consistent withthe three pillars contained in GRNSW’s Strategic Plan 2018-21 – Responsible,Competitive and Sustainable: T he inaugural staging of the Million Dollar Chase series – culminating in theworld’s richest greyhound race - which was won by NSW greyhound MysticRiot and attracted record interest and wagering for greyhound racing in NSW T he introduction of the Race Injury Rebate Scheme to improve welfareoutcomes for racing greyhounds by preventing unnecessary euthanasia andproviding greyhounds which are physically healthy and behaviourally soundthe opportunity to live out their natural life span as a companion animal S trong and appropriate increases in returns to industry participants in theform of additional prizemoney and travel subsidies, with a specific focus onregional areas I ncreased investment in the Greyhounds As Pets (GAP) NSW program,which led to an increase in the number of greyhounds adopted, and theannouncement of Tim Cahill as the first GAP NSW ambassador T he commencement of a series of major track rebuilds and upgrades, andother capital works and safety initiatives, in line with world’s best-practicesafety design and technology A healthy increase in Race Fields Information Use (RFIU) fees, whichreflected the growing demand for GRNSW’s commercial product from thecorporate bookmaker sector.The inaugural GRNSW Ladbrokes Million Dollar Chase was conceived in responseto industry participants stating a desire to be part of a competitive, responsibleand sustainable industry. It proved to be a major success on several fronts.First, the semi-final and grand final nights at Wentworth Park attracted hugespectator and wagering interest, eclipsing previous single meeting wageringrecords in NSW in consecutive weeks. Second, the event presented a platform toraise awareness of the GAP NSW rehoming program, which was strongly promotedthroughout the series. Third, the use of regional tracks as part of the qualifyingseries helped to boost club revenues through increased visitation and promotion,improving their sustainability. At the close of the reporting period, plans toexpand the presence of regional NSW racetracks for the 2019 Million Dollar Chasewere well-advanced with an increase from 11 to 14 regional qualifying and finalsmeetings programmed.6GRNSWAN N UAL RE P ORT 2019In order to capitalise on the positive sentiment associated with the MillionDollar Chase, a series of further initiatives to boost industry participation andcompetitiveness occurred in 2018-19. Most notable among these was the largestincrease in prizemoney in NSW greyhound racing history which was announced inJune 2019. A record 33 million will be distributed to participants in 2019-20, withmost of the 3.2 million boost targeted to regional NSW participants. FeatureCup events at the Wagga, Bathurst, Grafton, Goulburn and Dubbo tracks goingforward will now be worth a record 25,000, up from 10,000. And all winners atprovincial clubs in regional NSW (excluding maidens) will now receive 1,500, upfrom the current level of 850.Of course, million-dollar races and record increases in prizemoney are only possiblewith complementary enhancements in safety and welfare standards. Followingthe transfer of the regulatory functions of greyhound racing to the GreyhoundWelfare and Integrity Commission (GWIC) on 1 July 2018, GRNSW refocused itssafety and welfare efforts in three key areas in 2018-19 – (1) track safety to preventor minimise injuries; (2) the rehoming of greyhounds at the end of their careers;and (3) the establishment and administration of the Race Injury Rebate Scheme.GRNSW also funded significant costs associated with the establishment andtransfer of welfare functions to GWIC, which contributed to an overall net financialloss for GRNSW for 2018-19.Section 26 of the Greyhound Racing Act 2017 requires GRNSW to set minimumstandards with respect to racecourse design and construction. In response,throughout the course of 2018-19, GRNSW continued its association withengineers at the University of Technology, Sydney (UTS) and other industrystakeholders to develop new minimum track standards and procedures that allNSW racetracks will be required to comply with in the future. Furthermore, weincreased the level of monitoring and inspections of racetracks across NSW, whichresulted on a few occasions in tracks being closed and meetings cancelled untilnecessary maintenance works were carried out. As part of the application of thenew track standards across NSW, GRNSW track co-ordinators increased the levelof education available to club track curators and managers on track preparationand maintenance across the year.Several major track upgrades or capital works programs were also undertaken in2018-19, including a half million-dollar reconstruction and infrastructure upgradeat Wentworth Park in advance of the Million Dollar Chase finals. Other worksincluded allocations totalling 1.6 million to rebuild or upgrade racetracks atGosford, Gunnedah and Tamworth, and air-conditioning upgrades to kennels inKempsey, Taree and Hastings River to enhance animal welfare outcomes.
It was a year of growth for the GAP NSW adoption program and our associatedrehoming initiatives, where together we assisted in the rehoming of more than 700greyhounds. This was a significant increase on the previous year. But there is a needto do more, and we are committed to broadening the reach and effectiveness ofour rehoming initiatives. The expansion of the GAP NSW program to regional areas- which is the beating heart of our industry - and the genuine commitment of newambassador Tim Cahill to raising awareness of the program bodes very well forthe future. I congratulate Dr Alicia Fuller on her appointment as General Managerof GAP NSW and look forward to working closely with her on further welfareinitiatives.On behalf of the executive team and employees at GRNSW, I wholeheartedlythank the Hon. Morris Iemma for his passion, commitment and support as theChairperson of GRNSW over the past two years. He has helped steer GRNSW fromits darkest days towards a very bright future, and we wish him well for his future.I also congratulate our new Chairperson, Mr Hugh Armenis, and look forward toworking with him and the new GRNSW Board as we continue to make stridestowards growing a responsible, competitive and sustainable NSW greyhoundindustry.TONY MESTROVGRNSW CEOGRNSWAN N UAL RE P ORT 20197
SUMMARY OF FINANCIALPERFORMANCEThe 2018-19 financial year delivered a net loss of 1,508,237 for GRNSW, a resultinfluenced by a variety of factors including costs associated with the transition ofthe Regulatory function to the newly established Greyhound Welfare and IntegrityCommission (GWIC), a year on year decline in TAB wagering income and targetedinvestments in significant animal welfare and industry stimulus initiatives.EXPENDITUREExpenditure in 2018-19 increased by 8.6 million in support of initiatives to makethe greyhound industry in NSW more responsible, sustainable and competitive. Keyitems include: A s part of the GRNSW Operating Licence, the contribution by GRNSWtowards GWIC’s first year operating expenses for 2018-19 was 9,190,000,which included costs related to clearly communicating GWIC’s role toindustry participants and stakeholders. I nvestment in the GAP rehoming program increased year-on-year with 1,941,459 spent in 2018-19, up from 1,622,284 in 2017-18. GRNSW continuesto support and invest heavily in all welfare and rehoming activities throughfurther expansion and promotion of the GAP program, improvementsand investment in on-course veterinary infrastructure and detailed injuryreporting requirements. R acing and Club Infrastructure expenditure held steady in 2018-19, asGRNSW continue to provide support to clubs for track surface preparationthrough standardising equipment and the provision of annual trackrenovations. As part of the ongoing track safety initiatives, GRNSW alsocarried out several critical track and infrastructure upgrades at various tracksthroughout the year. C ombined returns to clubs and participants increased to 37,776,335, anincrease of 2,939,380, driven by an increase in prizemoney announced inMarch 2019 and the inaugural running of the Million Dollar Chase series inOctober 2018. M arketing and Media expenditure over the financial year increased by 1,582,028, driven by the Million Dollar Chase promotional campaign andevent costs, the GAP awareness campaign and event costs related to theNational Adoption Day in April 2019 and the GAP Adoption Day in June 2019. F inance, Legal and Corporate costs increased by 1,506,778 in 2018-19 duestaff redundancies, consultant costs related to legal and advisory mattersand financial advisory requirements, and costs related to the relocation ofthe GRNSW Head Office.8GRNSWAN N UAL RE P ORT 2019INCOMEThe headline items related to income include: T AB wagering income decreased by 1,321,044, equating to a 3.7% declineover the previous year. R ace Fields Information Use (RFIU) fee income increased by 636,371,representing a year-on-year growth of 2.6%, offsetting some of the TABdecreases. G RNSW received 5,622,095 in Tax Parity Receipts in 2018-19, which wasslightly up from the prior year but lower than expectation due to the weakerTAB wagering result. A s of 1 January 2019, GRNSW received 2,317,329 in relation to the newlyestablished Point of Consumption Tax (PoCT). GRNSW receives Tax Parityand PoCT payments on a quarterly basis which has assisted with managingcash flow.
WELFARE ANDEDUCATIONWELFAREAs a consequence of the Greyhound Welfare and Integrity Commission (GWIC)commencing operation on 1 July 2018, the oversight of the Welfare function ofthe NSW greyhound industry is now a shared responsibility between GRNSW andGWIC. GWIC assumed responsibility for the development of the Code of Practicefor the Welfare of Greyhounds, veterinary presence at greyhound racetracks andfor the compliance of industry participants with respect to welfare of greyhoundsin their care. GRNSW retained responsibility for the rehoming of greyhounds and,training and education of participants and clubs to enhance welfare outcomes forgreyhounds.GREYHOUNDS AS PETS PROGRAMGreyhounds As Pets (GAP) NSW assisted in rehoming 729 Greyhounds in 2018-19through our adoption centres, new Regional GAP program and reinvigoratedschemes providing financial assistance to greyhound owners, and other rehomingorganisations to transition greyhounds from the racing industry into life as a pet.Along with increasing public awareness of why greyhounds make great pets andpromotion through marketing campaigns, our adoption days and attendance atevents meant we were able to achieve a significant increase on adoptions fromthe previous year.GAP held eight adoption days across NSW, with National Adoption Day (NAD) inApril being the most successful with 38 greyhounds adopted on the day. NAD sawall the states come together to promote Greyhounds as Pets with TV personalityTodd McKenney as the official national ambassador of the initiative.Outside adoption days, GAP took part in many local community events wheredogs were a focus, including the Sydney Royal Easter Show and the Great GlobalGreyhound Walk - continuing to raise awareness of the greyhound as a breed andwhat
www.grnsw.com.au www.thedogs.com.au GRNSW 2019 2019 ANNUAL REPORT 3 CONTENTS Chairperson’s Report 04 CEO’s Report 06 Summary of Financial Performance 08 Welfare and Education 09 Operations 11 Track Maintenance 12 Media, Commercial and Marketing 14 Wagering 16 Legal and Policy 18 GIPA Report 20 Financial Statements 22
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