The merger of the Australian Jockey Club and Sydney Turf Club was confirmed today by the NSW Government, paving the way for a $174 million investment in the future of Sydney racing.

The record funding will enable major upgrades to Rosehill and Randwick racecourses to proceed as a result of the merger of Sydney's two metropolitan race clubs.

NSW Racing Minister Kevin Greene announced that the NSW Government had given in-principle support to the merger of the two clubs and the drafting of necessary legislation.

“This is the biggest step in securing the future of the NSW racing industry,” Greene said.

“NSW is the home of racing in Australia. Put simply, the investment in spectator facilities and reforms to NSW racing are essential if we are to secure the future of tens of thousands of jobs, grow one of our s most significant industries and continue to attract major events to Sydney.

“The NSW racing industry boasts more than 50,000 participants - the highest in Australia.

“Trainers, jockeys, bookmakers, stablehands, associated maintenance, hospitality, security and other staff are the lifeblood of our industry and depend on its sustainability for their livelihood.

The NSW Government has been driving the merger of the AJC and STC for the last 18 months and had stipultaed thatr the massive fiunding would not be forthcoming unless the two clubs came together.

Greene said a proportion of the proceeds of a new simulated racing game will finance the investmeent in the new merged club.

The $174 million funding package includes a grant of $24 million for the merged race club entity to fund renovation and infrastructure improvements at Rosehill Gardens.

This program will include rfurbishment and alterations to the Fleming stand on all levels; a vehicular access bridge and tunnel to an infield carpark; a new main entry and pedestrian railway bridge from James Ruse Drive; a new pedestrian bridge over James Ruse Drive; a demountable Infield concert stage, infrastructure and a new infield screen.

The NSW Government will also establish a Thoroughbred Racing Development Fund which will allow the racing industry to secure a $150 million loan.

This loan will fund the redevelopment of Randwick racecourse and allow for two new state-of-the-art grandstands that will increase seating capacity by 112 per cent and provide spectator facilities, function space, restaurants and corporate boxes.

Other developmnets at Randwick will include a new 4500 seat multi-purpose 'Theatre of the Horse' parade ring.

Racing NSW chairman Alan Brown said the merger will provide the means for racing in Sydney to provide world class facilities for the public.

AJC chairman Ron Finemore also welcomed the positive news from the Keneally Government.

"The AJC Board unanimously endorses the NSW Government proposal as the right way to secure the future and grow one of our state's largest industries," Finemore said.

Sydney Turf Club chairman Bill Picken also supported the announcement.

The funding will allow construction of world class facilities at Sydney's two icon racecourses and will offer race fans from all over Sydney, from interstate and from overseas, the opportunity to enjoy premier racing," Picken said.

Greene said a proportion of revenue from the simulated racing game in TAB venues called Trackside will be paid into the fund.

Based on TAB projections and with the inclusion of a proportion of NSW Government wagering taxes, this is expected to amount to around $12 million annually after three years which will fund loan repayments.

“Revenue from the fund will be administered in accordance with a Deed of Arrangement to be executed between myself, Racing NSW, Tabcorp and the new merged race club," Greene said.

“It is important to note that the harness and greyhound codes will still receive their share of funds as per existing arrangements."

In 2008/09 the NSW Government received wagering taxes on racing events of over $152 million.

Trackside will enable players to place TAB-style bets on the outcome of simulated thoroughbred, harness and greyhound races shown on in-venue television screens.

“We're now reclassifying Trackside as a wagering product which more accurately fits its design and market. It also brings NSW into line with Victoria where Trackside already operates in TAB outlets as a wagering product, providing invaluable support to its racing industry," Greene said.

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