Victorian racing industry at risk of corruption as cost-of-living pressures rise

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Cost-of-living pressures will have “integrity ripple effects” across Victoria’s racing industry, putting participants at greater risk of corrupt conduct, the state’s racing integrity commissioner has warned.

Commissioner Sean Carroll said while complaints to his watchdog – which can investigate reports of race fixing, prohibited substances and systemic animal welfare issues – were notionally down by 12 per cent on the previous year, they were up 31 per cent compared with the previous five-year average.

Racing Integrity Commissioner Sean Carroll say his watchdog is well-placed to respond to misconduct issues.Credit: Joe Armao

There were 108 complaints about alleged misconduct across horse racing, greyhound racing and harness racing in the last financial year, according to the commission’s latest annual report, released late last week.

Carroll warned the forecast downturn in wagering revenue, reductions in prizemoney and increased competition for corporate and entertainment dollars could lead to bad behaviour within the racing industry and urged racing bodies to respond to the evolving risks.

“We know that people experiencing economic hardship are more vulnerable to poor decision-making and these issues will undoubtedly create integrity ripple effects across the Victorian racing industry,” he said.

“This may include taking shortcuts in relation to compliance and welfare concerns, or overtly seeking to gain an advantage by crossing integrity boundaries altogether.”

Speaking to this masthead before Melbourne Cup Day, Carroll said the commission was making a concerted effort to speak to as many participants as possible, and that the watchdog was well-placed to respond to issues.

“If you look historically, what has occurred in the past in racing and other sports, it’s in times of financial hardship that people turn to doing things on the wrong side of the law,” he said.

“We are monitoring more than ever.”

Of the more than 100 tip-offs received in the last financial year, almost half related to thoroughbred racing. After receiving complaints including suspected criminal conduct and breaches of the rules of racing, the commission can refer matters to other racing bodies, the police or the Independent Broad-based Anti-corruption Commission.

There were 11 complaints about animal welfare, nine wagering disputes, eight allegations of criminality and three commercial disputes between participants last financial year.

One complaint alleged a racing participant was engaging in inappropriate behaviour, which was investigated by the controlling body. Charges were laid and the participant was found guilty and disqualified.

In another instance, a member of the public contacted the commissioner about an alleged fraudulent racing syndicate operated by an industry participant, which resulted in the participant being charged by stewards and disqualified.

Monash University gambling expert Professor Charles Livingstone said people’s behaviour changed with their economic circumstances, and it was likely it would result in more people cutting corners.

“If you work in the racing industry in a rougher economic climate, there will be many temptations to cut corners, whether that’s in animal welfare or encouraging doping or gambling activities,” he said.

“Racing has supposedly been well-regulated for a long time, but that hasn’t stopped scandals.

“The reality is that people’s behaviours will obviously change with economic circumstances, but the problem is making sure it gets detected.”

The integrity watchdog said it had tried to engage with the harness racing industry, which had provided “a historically lower source of information and intelligence compared to the thoroughbred and greyhound codes”.

The commission said its increased engagement resulted in an almost five-fold increase in harness-related intelligence reports compared with the previous five-year average.

A spokesperson for the state government said it was confident the commissioner and his office could “ensure the highest standards of integrity assurance in the Victorian racing industry. Establishing clear and robust reporting channels ensures that participants feel safe to make complaints that will be handled in an appropriate and transparent way.”

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