Jumps racing cost taxpayers $1.8m more than it returned

Jumps racing cost Victorian taxpayers $1.8 million more than it generated in gambling revenue, according to an independent analysis commissioned by Animal Justice Party MP Georgie Purcell, as she ramps up calls to scrap the sport.

The figures are detailed in new costings provided by the Victorian Parliamentary Budget Office [PBO] finalised in October.

Purcell, whose party has long campaigned to end jumps racing in Victoria, asked the PBO to calculate the “net subsidy” of jumps racing in Victoria, or how much the state government spent on the sport compared with how much tax it brought in.

This was determined by subtracting the $900,000 the sport was estimated to have contributed to gambling taxes and wagering licence fees from $2.8 million it received as a share of these taxes and state government funding.

After rounding, the PBO put the “net subsidy” of the industry at $1.8 million in 2024-25.

This figure was a significant increase from a $300,000 subsidy in 2023-24, largely because of a new $90 million state government funding deed shared across the racing industry that came into effect in the last financial year.

“We estimate that the government receives less revenue from Victorian jumps racing than it provides in funds,” the PBO analysis says.

The report noted that it was forced to rely on publicly available information as documents requested from the Department of Justice and Community Safety were confidential.

Outside of prize money, the PBO had to rely on assumptions to estimate how much Racing Victoria spent on jumps racing, and it did not consider other forms of tax revenue. The analysis was completed in October, before the release of the mid-year budget update.daniel.

Purcell said jumps racing should have been banned decades ago, with no other Australian state still allowing the practice.

“This is a dirty industry that is already on its knees and this latest report confirms what we already know – it’s fighting desperately to stay afloat,” Purcell said.

“It is up to Premier Jacinta Allan and Racing Minister Anthony Carbines to explain why, in a cost-of-living crisis, their broke government is wasting taxpayer funds on this cruelty.

“To green-light racing of any kind is to green-light animal cruelty, but to stubbornly continue to fund an industry that’s running at a loss shows just how out of touch the Allan government is with Victorians.”

“It’s time the Victorian Labor government got behind calls from former deputy Premier and Racing Minister Rob Hulls and shut this down for good.”

Jumps events came under fresh scrutiny in 2024 after seven horse fatalities were recorded and Racing Victoria said it would review the season.

That triggered an intervention from Hulls, a former racing minister for Labor, who threw his support behind a ban.

In December 2024, the body said it would continue jumps racing in the state with extra safety measures, including a Jumps Taskforce to assess these changes.

In the 2025 season, there were five fatalities recorded following these changes. Critics argue this figure should be six fatalities in 2025 and 10 in 2024 as more horses that had competed in jumps events died later in the year.

At the time, Racing Victoria chair Tim Eddy said their decision recognised the cultural and economic significance of jumps racing to regional Victoria, particularly “its vital role in events such as the Warrnambool May Carnival”.

The board also found the Warrnambool May Carnival, which heavily features jumps, generated $14.8 million in direct expenditure annually for the local economy and removing the sport would likely reduce visitation numbers and appeal.

A Racing Victoria spokesperson said it had not seen the analysis but said the broad Victorian Thoroughbred Racing Industry supports 111,194 jobs and generates $3.4 billion economic activity.

They said changes introduced after 2024 led to a decline in raceday fatalities year-on-year.

“Racing Victoria’s Jumps Taskforce is committed to evaluating safety metrics, participation rates and economic impacts at the conclusion of each jumps racing season,” the spokesperson said.

A broader review planned for the end of 2027 was abandoned last year, with Racing Victoria pledging to hold the review only if key results were not met, such as a high rate of fatalities.

The RSPCA in January criticised Racing Victoria for taking down historical reports from the jumps review panel from its website.

A government spokesperson said decisions on the future of jumps racing were a matter for Racing Victoria.

“Jumps racing supports regional jobs and economies, with the Warrnambool May Carnival alone generating nearly $15 million and attracting more than 6,500 visitors last year,” they said.

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