A leaked report by racing insiders for TAB NZ warns that New Zealand’s horse racing industry faces a structural deficit exceeding $50 million annually and risks exhausting cash reserves by 2027/28 without further government support. Key challenges include a 22% decline in foal numbers over the past decade, fewer breeders, frequent race cancellations due to poor track conditions, and an aging participant and audience base with weak youth engagement. The report recommends significant reforms such as unifying racing governance, consolidating property ownership, transferring the Racing Integrity Board’s funding to the government, modernizing tax and regulatory settings to stimulate breeding investment, and allowing TAB NZ to diversify revenue by running online casinos.

The report’s authors include major NZ First donors Sir Peter Vela and Sir Brendan Lindsay, who have collectively contributed hundreds of thousands to the party, raising concerns about potential conflicts of interest given Winston Peters’ dual role as Minister for Racing and NZ First leader. Despite this, the party states donations are managed independently of ministers. The industry has historically received substantial taxpayer support, including a $50 million bailout in 2020 and tax concessions in prior years. Critics argue that tax incentives alone will not reverse the industry’s decline, which some foresee turning racing into a niche “cottage industry” within a decade unless deeper structural changes are made.