Australians continue to bet heavily on the Melbourne Cup, with wagering turnover remaining stable at around $220 million over the past five years, despite a widespread loss of interest in the race and ongoing animal welfare concerns. According to Racing Victoria, turnover on the Cup has only slightly dipped from $221 million in 2020 to $214 million in 2024.
However, overall wagering on horse racing in Australia has fallen sharply, posing a challenge to the industry's long-term sustainability. In Victoria, the amount gambled on horse racing dropped by 10.2% last financial year, following a 4% decline the previous year. Wagering turnover fell from $9.1 billion in 2022 to $7.9 billion in 2023-24. Similar trends are seen in New South Wales, where wagering revenue fell 9.6% over two years.
Racing bodies attribute the decline to cost-of-living pressures, higher interest rates, a shift towards other sports betting, reduced advertising and promotions, and tighter regulation. Charles Livingstone, a gambling researcher at Monash University, described the Melbourne Cup as a marketing opportunity for bookmakers to attract casual gamblers who might otherwise not bet.
Bookmakers have reduced 'free bet' promotions, which were criticised by a parliamentary inquiry into gambling harm. In Victoria, free bets on horse racing fell by nearly 10% between July and November 2024. Despite this, bookmaker margins increased from 14.2% to 15.4%, which Racing Victoria attributed to fewer favourites winning.
Racing Victoria reported a Derby Day crowd of over 86,000 on Saturday, up 5.5% from 2024, as the industry invests in appealing to younger audiences through partnerships with live music festivals. However, gambling giants Flutter and Entain have noted continued softness in the Australian racing market, with Flutter's Sportsbet reducing promotional spending while targeting offers more precisely.
