PHILIPPINE RACING CLUB, INCORPORATED – AN OVERVIEW

        The Philippine Racing Club was established in 1937 by a group of Filipino and American businessmen originally as the Santa Ana Turf Club.  It pioneered in thoroughbred racing. 

In 1994, majority ownership passed on from a single controlling family to a group of businessmen which included the present management of the corporation.  At the time,  computerized totalisator and offtrack betting for horse racing were just starting in Manila.  Offtrack betting stations at the time numbered eleven while  gross sales from betting amounted to P980 million. 

          The decade leading up to the mid-2000’s marked a period of rapid growth for  the Philippine horse racing industry, in general and for PRCI, in particular.  In 1996, PRCI’s total betting sales amounted to P1.3 billion which accounted for less than half, or 48 percent, of total industry sales.  By 2005, gross betting revenues by the company had reached P4.6 billion, representing a 51.63 percent market share.  (That market share actually peaked in 2000 to 54 percent of total industry betting sales.)  Between 1997 and 2004, PRCI’s gross betting sales grew by an average 16 percent yearly.   Betting sales tapered off in 2006 with a 4 percent negative growth but showed signs of a rebound in 2007.

          The predominant driver of growth for the industry was the focus accorded to expanding the off-track betting network for horse racing.  PRCI embarked on an aggressive marketing thrust aimed at building partnerships with  potential OTB operators in strategic locations all over the country.

          From an initial 11 OTBs in 1994, PRCI steadily built up its network to 335 by the end of 2007.  OTBs today account for 90 percent of gross handle. While most of the OTBs are in Metro Manila, traditionally the area of the greatest concentration of  racing patrons, new markets are opening in Northern Luzon and in the Visayas.

            This development may be said to be closely linked to, or is a logical consequence of the technological applications in the broadcast of horse races and the transmission of betting  data.  Most OTBs have also installed their satellite reception equipment, while local cable TV stations throughout the country carry the race broadcast.  There is, therefore, an expanding reach of horse racing which is creating new markets for the gaming side, as well as new enthusiasts   for the sport.