Global racing leaders gathered this week in Riyadh for the 41st Asian Racing Conference, where Hong Kong Jockey Club Chief Executive Winfried Engelbrecht-Bresges delivered a stark warning about the industry's future. As Chair of the Asian Racing Federation since 2014, Engelbrecht-Bresges outlined multiple existential threats facing horse racing worldwide.
Critical Crossroads for Racing Industry
"I firmly believe that we stand at a crossroads," Engelbrecht-Bresges declared in his opening address. "A crossroads for growth, and one where we may struggle to shape our future in the way the sport requires." The executive leads one of the world's most influential racing organizations, with the Hong Kong Jockey Club generating approximately £13 billion in annual betting turnover and housing two of the globe's top ten ranked racehorses.
Alarming Market Share Decline
Despite this prominence, Engelbrecht-Bresges revealed troubling statistics about racing's shrinking market position. "Wagering trends, especially since 2023, show racing's share continues to shrink," he explained. "In 2020, racing had a market share of 22 per cent. We are now down to 13 per cent." This dramatic decline highlights the sport's struggle against competing entertainment and betting options.
World Pool Success Story
As a positive example of industry innovation, Engelbrecht-Bresges pointed to World Pool, created by the Hong Kong Jockey Club and first launched at Royal Ascot in 2019. This global pari-mutuel system allows bettors from multiple countries to wager into shared pools on elite international races, offering improved odds stability and potentially higher returns.
Now entering its seventh year, the initiative includes more than 27 jurisdictions offering access to pools across major racedays in 11 countries. "We expect turnover for World Pool to reach around HK$12 billion in 2025/26," Engelbrecht-Bresges announced. "This initiative demonstrates what can be achieved through collaboration. We have expanded coverage to include 54 per cent of the world's top Group One races across 380 events."
Major Threats to Racing's Future
Engelbrecht-Bresges identified several critical challenges facing the industry:
- Illegal Gambling Surge: "We face a massive challenge from illegal operators," he warned. "Their growth, particularly when enabled by crypto, is exponential. The global cost of illegal gambling is estimated at $3.7 trillion. In Hong Kong alone, we have seen a 29 per cent increase in illegal operators targeting our customers."
- Competition from New Formats: The executive highlighted increased competition from sports betting, iGaming, and prediction markets that appeal to younger audiences.
- Aging Fan Base: Racing struggles to attract younger bettors who expect fast, mobile-driven experiences with gamification elements.
Youth Engagement Crisis
Engelbrecht-Bresges specifically addressed racing's failure to connect with younger generations. He cited prediction platform Kalshi, which reportedly generates weekly turnover of around $2 billion but offers minimal engagement with horse racing markets. "Why?" Engelbrecht-Bresges asked. "Because racing is not currently interesting enough for younger customers. Younger customers are used to having everything on their phones. They want gamification and instant gratification."
Regulatory Concerns and Global Fragmentation
The Hong Kong racing chief also warned about regulatory developments accelerating offshore betting activity. "Affordability checks in the UK have created a significant incentive for some punters to move offshore," he noted, suggesting this trend should serve as a warning to other jurisdictions.
Echoing themes from the Asian Racing Federation's 2024 conference in Sapporo, Engelbrecht-Bresges emphasized the urgent need for stronger global cooperation. "We must collaborate internationally if we want to turn the tide," he insisted. "One of our biggest problems is fragmentation. We need to change our mindset and work together globally to move the sport forward."
The executive concluded that racing must create heroes, competitions, and platforms that broaden reach and connect with new customer segments. Without significant transformation and international collaboration, he implied, the industry risks continued decline at this critical historical juncture.
