A main challenge faced by clubs, especially after the COVID-19 pandemic, was a drop in attendances and revenue. The Macau club, for example, racked up losses of US$310 million, according to a report by news agency AFP.
The Singapore Turf Club’s average attendance per race day declined from 11,000 in 2010 to 6,000 in 2019. After the COVID-19 pandemic, attendance was 2,600 per race day.
John Lim, chairman of Perak Turf Club, told CNA that its attendance of about 700 people during race days is a far cry from around 7,000 in its heyday back in the 1980s.
When he entered the sport back in 2007, the three turf clubs in Malaysia were able to generate about RM1 billion (US$232.6 million) in betting revenue a year, he said.
These days, annual revenue has fallen to about RM350 million, which Lim attributes to widespread illegal betting.
At the Malaysian clubs, the minimum legitimate bet is RM5, but Lim pointed out that some illegal websites offer lower minimum bets of RM4.20.
“A lot of the betting revenue has shifted to the illegal operators. We cannot control the illegal betting market out there,” he said in a phone interview.
Governments around the world impose taxes on betting to mitigate its negative social impact.
But illegal operators, circumventing regulations and taxes, are able to offer consumers better odds, according to a report on illegal betting markets last year by the Asian Racing Federation.
The federation comprises 28 national racing authorities and racing-related organisations from across Asia, Oceania, Africa and the Middle East.
Research has estimated that around 80 per cent of sports bets worldwide are made illegally and the United Nations estimated in 2021 the total amount bet annually may be as much as US$1.7 trillion.
Lim said the Perak Turf Club was losing money, but did not disclose figures.
“There are no thoughts about closing at the moment, but no business can survive if it loses money continuously. We just hope that it doesn’t come to that,” he added.
“People need to know that we are losing money mainly because there isn’t enough revenue because of illegal betting. They have to change that mindset and support legitimate betting if they want the sport to continue,” he added.
Curbing illegal gambling and its appeal is an uphill battle, however.
A regular punter at the Selangor Turf Club showed CNA an unauthorised website offering slightly higher winnings than the club and added: “These websites pay the money into your account almost immediately.”
