You do the form on Wednesday night, spot the overs, and lock in what looks like a cracking price. You go to bed feeling like a genius.
Then race morning rolls around.
A scratching lands. Deductions hit like a sledgehammer. Suddenly that “terrific price” you were so smug about now looks like something you would only take after three schooners and a dare.
Few things frustrate punters more.
And importantly, this isn’t a criticism of bookmakers, most of whom are simply operating within the frameworks and policies set by racing authorities.
But as Principal Racing Authorities across the country head into budget season, with cost cutting and job losses already beginning to emerge as administrators fight to protect prizemoney, it’s important punters aren’t forgotten in the process.
Because they are the people funding the sport.
For all the discussion around wagering growth, customer engagement and long-term sustainability, deductions remain one of several sources of frustration and confusion for everyday punters.
Most punters understand the concept. If a heavily backed favourite comes out, prices need to adjust.
The issue is the lack of consistency, transparency and logic in how deductions are often applied.
As Betsy highlighted last year, punters frequently wear deductions that feel disconnected from the true market impact of the scratching. In some cases, the market has already adjusted before the official deduction is even applied, effectively creating a double hit for customers.
In punter land, the inconsistencies between operators have become so common that many simply refer to it as “deductions lotto”.
There’s also the broader confusion around how deductions are calculated in the first place. Two punters can take the same horse at the same price with different operators and end up with materially different outcomes after a scratching.
That lack of consistency erodes confidence.
Which is why Racing Victoria deserves enormous credit for introducing the Victorian Official Deductions (VOD) model, a first-of-its-kind system in Australian racing.
Under the VOD framework, all wagering operators on Victorian thoroughbred racing are required to apply the same official deduction values calculated and published by Racing Victoria for fixed odds win and place bets.
Prior to the system being introduced, every bookmaker effectively used their own deduction methodology. The result was heavy inconsistencies across the market and enormous frustration for punters.
The VOD model brought much-needed consistency and transparency.
The deductions are calculated using the Victorian Official Price market, with a preset scale determining the deduction percentage based on the scratched horse’s odds at the time it comes out.
Importantly, bookmakers cannot apply a harsher deduction than the official RV figure. They can, however, choose to be more favourable to punters by applying a lower deduction or electing not to deduct on emergencies.
No deductions model will ever make every punter happy, but the Victorian approach at least creates clarity and removes much of the guesswork.
That should now become the national standard.
Punters shouldn’t need to understand different deduction methodologies depending on which state a race is held in. They shouldn’t feel like they need a mathematics degree to work out what their bet is actually worth after a scratching.
And most importantly, they shouldn’t feel like they are constantly losing value after already taking the risk of betting early.
Pleasingly, Betsy understands Racing NSW is currently reviewing a model for standardised deductions, which would be a step in the right direction. Hopefully all states follow suit.
Consistency across jurisdictions would remove much of the confusion and frustration that currently exists, particularly for customers betting early into fixed odds markets.
Punters are not the enemy of racing. They are its financial backbone.
As racing authorities make difficult financial decisions over the coming months in an effort to preserve prizemoney and keep vocal stakeholders on side, improving the experience for the customer funding the game should be part of the conversation too.
Punters have rapidly increasing optionality through other sports, which are becoming increasingly attractive. Ignore punters for too long and suddenly every stakeholder that relies on industry funding to survive will find themselves regretting decisions made today.
Sometimes the biggest gains don’t come from reinventing the wheel. Sometimes they come from simply removing friction.
For punters, deductions remain a source of friction in Australian racing.
