Jockey Club to adopt 30 pct cut in prize money amid financial woes

The Macau Jockey Club (MJC) has announced a 30 per cent reduction in horse betting prize money, starting this Saturday. The announcement was made through a letter addressed to club members and horse owners, public broadcaster TDM Canal Macau reported.

This move comes as the financial troubles of the city’s sole horse betting operator continue to worsen. Horse racing has yet to show clear signs of post-pandemic recovery, with gross revenue standing at MOP32 million (MOP 4 million) in the first nine months of the year. This is a 14 per cent increase compared to the same period in 2022 when the city was under strict Covid-related restrictions, but it is only 43 per cent of the pre-pandemic levels in 2019. If compared with the first three quarters of ten years ago (2013), the MOP32 million tally accounts for only 11.7 per cent.

“Due to the below-expectation betting turnover of the club over the years, the club reluctantly implemented a corresponding policy adjustment,” reads the letter, as shown by TDM. The MJC has been on a losing streak since 2005, reporting accumulated losses of MOP2.1 billion (US$261.4 million) for 2022 in June.

Earlier this year, horse racing industry insiders expressed concerns about the immediate future of the sector, fearing that Macau might follow Singapore’s recent decision to discontinue the sport. In September, the MJC eventually obtained approval from the authorities for the horse racing calendar for 2023/2024.

“We aim to sustain the club’s operations despite the challenges in the current economic environment,” the letter adds.