HRV tackles challenges head on with confidence for the future

Harness Racing Victoria has endured more than its fair share of criticism in recent years. Financial pressures, declining wagering growth and uncertainty around the future of the sport have all contributed to a difficult period.

However, HRV Chief Executive Matt Isaacs believes the industry has now reached a turning point.

Speaking candidly with Harnesslink, Isaacs acknowledged the challenges but said difficult decisions over the past two years had placed the organisation in a far stronger position to build for the future.

Q: Financial sustainability has been the major issue facing HRV. Where does the organisation stand today?

Matt Isaacs:
“We’ve right-sized Harness Racing Victoria and turned the enterprise from a forecasted $34 million loss in 2023 into an expected $1.1 million surplus for the 2025/26 financial year.

“We’ve made significant changes across the business. The Melton Entertainment Park is now generating around $2 million profit annually.

“The outlook remains challenging because of Government debt. As a statutory authority we’ve been unable to secure additional funding despite harness racing contributing $623 million annually to the Victorian economy. (latest IER report into Racing contribution to the Victorian Economy).

 

“Our focus has been to right-size the business while continuing to pursue profitable growth.”

Q: How important is the future of the Melton precinct?

Matt Isaacs:
“The land at Melton represents the future of harness racing in Victoria.

“We continue discussions with Government because unlocking that land provides the opportunity to establish a future fund that can be reinvested directly back into the industry.

“If legislation allows HRV to transition from a statutory corporation to a company limited by guarantee, it will allow the industry to retain the proceeds from future development.

“Realistically that process is unlikely to be completed before in the short term.”

The projected operating surplus albeit a minor one is significant. If confirmed in the audited accounts later this year it would represent HRV’s first operating surplus in many years and provide an important platform for future investment.

Q: Owners are the backbone of the industry. What is HRV doing to encourage ownership?

Matt Isaacs:
“We’re developing an Owners Card for Melton that will provide a range of discounts and benefits.

“We want to reduce the barriers to ownership.

“Syndication remains one of the biggest opportunities. Regional communities already understand ownership through sporting clubs and community organisations, while metropolitan Melbourne offers enormous potential if we can engage people through existing sporting venues and commercial partnerships.”

Q: Participants are concerned about prizemoney. Can improvements be expected?

Matt Isaacs:
“We recently increased minimum prizemoney to $5,000 for races rated NR40-49.

“Overall, 51 per cent of revenue is distributed back into prizemoney, consistent with the distribution across all Victorian racing codes.”

While participants naturally compare HRV with neighbouring states, Isaacs said HRV must balance returns with long-term financial sustainability.

Q: Wagering has traditionally driven industry growth. How do you see its future?

Matt Isaacs:
“Wagering remains critical but it’s changing, and challenged.

“We’ll see greater regulation nationally and at state level, similar to what’s already occurring in the United Kingdom where there are increased protections around problem gambling.

“Point of Consumption tax and betting levies will become increasingly important.

“Sports betting continues to grow rapidly, we need to recognise that. Just an example, the recent FIFA World Cup generated more turnover with one bookmaker across just 64 matches than harness racing produces over an entire year.

“Currently we receive around three cents in every dollar wagered through bookmakers, although that landscape will continue to evolve.

“There are presently around 106 bookmakers contributing product fees, but consolidation at the top end of the market is inevitable.  And barriers to entry will become more difficult for bookmakers.”

 

Q: What role does breeding play in Victoria’s future?

Matt Isaacs:
“Breeding is absolutely vital.

“Over the next two years we’re committed to reducing the stallion levy while continuing to support feature races including the Inter Dominion and The Eureka.

“We’ve secured $3 million in Victorian Government funding for breeding and purchase incentives.

“In the long term, subsidies alone aren’t the answer. We need commercial returns that encourage owners to keep investing.

“We also want to increase broodmare numbers and programme more mares races throughout Victoria.”

Mares races have become a main feature in other states and provides keen and competitive racing as well as adding variety to race programming.

 

Q: How important are feature carnivals?

Matt Isaacs:
“Feature racing remains one of our greatest promotional opportunities.

“We’re continuing discussions regarding insurance and finalising arrangements for our major carnivals.

“We understand the challenges around national scheduling because every jurisdiction is competing for the same horse population.

“However, every state can still showcase its major events.

“Our Summer of Glory concept exceeded expectations in 2026 and we’re confident it can become even bigger next year.”

Q: Clubs continue to face financial pressure. What is HRV’s approach?

Matt Isaacs:
“Our recently released White Paper outlines the next steps for clubs.

“It isn’t simply about finances.

“It also recognises the important social and community role clubs play throughout regional Victoria.

“Each club needs to consider its long-term future while remaining connected to its local community.”

Q: Looking ahead, where do you see the greatest opportunities?

Matt Isaacs:
“Slot racing has potential, particularly at community level.

“We’ve seen outstanding success with initiatives like Birchip and believe there is scope for another similar events across Victoria.

“The proposed transition to a company limited by guarantee will also provide HRV with greater commercial flexibility.

“It will allow us to innovate more quickly, commercialise opportunities and reinvest every dollar back into the industry.”

Q: Finally, what message would you like every owner, breeder, trainer, driver, club and participant to take away?

Matt Isaacs:
“We’re in a far more robust position than many people realise.

“Our major asset at Melton is performing strongly and offers significant future upside.

“The Board is committed to securing the industry’s future.

“Victoria has always led innovation through initiatives such as Vicbred. We’re exploring a number of new concepts, including the possibility of another slot race.

“The challenges haven’t disappeared, but we now have a clear pathway forward.”

Looking Ahead

There is no doubt Victoria still faces significant work.

The financial pressures confronting all racing codes remain real, wagering patterns continue to evolve and Government decisions surrounding HRV’s future structure will be crucial.

Yet after several difficult years, there are signs that stability is returning.

Isaacs does not pretend the industry’s challenges have been solved overnight. Instead, he presents a measured vision built on financial discipline, commercial opportunity and long-term investment.

The “good old days” may not return in exactly the same form, but harness racing continues to evolve. If the current strategy delivers on its promise, Victoria may well be positioning itself not simply to survive—but to lead the next chapter of Australian harness racing.

HRV will be conducting a strategic discussion on the current and future issues affecting harness racing at Bendigo starting at 5.30pm on 31 August. The event will be livestreamed on Thetrots.com.au

 

By Tony Milanese for Harnesslink