Racing Victoria (RV) and the Victoria Racing Club (VRC) have rightly celebrated the success of Cup week.
Wagering turnover, one of the clearest engagement indicators, was up for the first time in four years. Turnover jumped 7.6 percent year-on-year. Attendance crept up 0.4 percent, which given the weather was a win.
Moonee Valley did not fare as well. Turnover fell 2.4 percent, with the late scratching of Tropicus playing a role. Caulfield was stronger. The Caulfield Cup Carnival was up 3.9 percent. Across the entire Spring Carnival, from August 30 to November 8, turnover rose 3.4 percent.
But there is a sting in the tail for RV.
Much of this growth was likely driven by punters winning. When punters win, they reinvest. And this spring, punters were hot. The average starting price of Cup week winners was $5.88. Last year it was $12.15, or $9.96 if you remove Knight’s Choice at $101. That is a huge swing.
Bookmakers felt it. Derby Day was a write off. Well-backed runners won all afternoon, and punters kept rolling their winnings through the week.
This is the irony of the funding model. The more punters lose, the more money flows to industry revenue streams like prizemoney. When punters win, RV takes a hit.
Speaking on SEN, CEO Aaron Morrison confirmed RV was around “four to five million dollars behind budget” for the financial year, with the majority of that impact being felt during Cup week. A big blow during a week that delivers about eleven percent of annual turnover.
RV had forecast a return to break even in the 2025-26 financial year after successive deficits. Cup week’s income hit makes that target tougher. It highlights how exposed the sport is to the volatility of wagering behaviour.
Still, most in the industry would take short-term pain if engagement goes up. PRA revenue models swing around, but interest in the sport is what matters. And this spring saw genuine growth.
The timing is delicate. Morrison has already conceded that holding prizemoney at current levels is proving difficult.
“It’s a challenge,” Morrison said.
“It’s becoming harder, but we have been managing what we can on the cost side. But we can’t cut our way to future success and sustainability. We have to see some growth. We have seen four years of wagering decline, but here we are talking about growth.”
Punters now head into summer with full wallets and plenty of momentum. If that confidence carries through, the green shoots of Cup week may grow into something far more sustainable.
