Emerging Markets & The Shifting Racing Landscape

Global Racing Faces Simultaneous Expansion And Contraction

As international racing authorities gather to shape the sport's future, Bruce Sherwin offers a perspective that transcends regional boundaries. The director at New Zealand Thoroughbred Racing and Asian representative for developing countries on the International Federation Executive Council, speaking ahead of the next Asian Racing Conference in Saudi Arabia, delivers an assessment of global Thoroughbred racing experiencing simultaneous expansion and alarming retreat across multiple continents.

His analysis reveals an industry confronting universal challenges whilst celebrating pockets of extraordinary growth. From the meteoric rise of Saudi Arabia and China's Yulong Investments breakthrough to the painful closures in Singapore and Macau, Sherwin's perspective illuminates patterns affecting racing worldwide, not merely one region.

"I wouldn't buy too much into the East versus West competition and influence. I think the challenges resonate globally," Sherwin insists, establishing his framework immediately.

The numbers support his concern. "Around the world, we are actually seeing a reduced footprint in most countries. Foal crops are down. There's been a slight retraction in a number of countries in terms of the wagering handle."

Gulf Investment Provides Global Template

The Gulf States' rapid development offers lessons for racing jurisdictions worldwide, according to Sherwin, who sees their approach as potentially transformative beyond the Middle East.

"I think it's fitting that the next Asian Racing Conference is in Saudi Arabia. Without question, the Gulf States have been emerging and developing very quickly, led by the United Arab Emirates and more recently, the growth in Saudi Arabia."

Yet even as he acknowledges this expansion, Sherwin emphasises maintaining global diversity. "It's vitally important that the sport remains global and has a global footprint."

China's Yulong Breakthrough Signals New Era

The emergence of Yulong Investments, led by Zhang Yuesheng, represents a watershed moment, not just for Asia but for international racing's development model.
"One country I am intrigued by in its development is actually China. We've seen Mr Zhang of Yulong Investments and the massive investment they've put into the racing industry to build their empire. We have waited for decades to see what would emerge from China. It's been a welcome and refreshing take on industry investment out of China."

Yulong's approach, acquiring elite international bloodstock and competing at the highest levels globally, demonstrates how emerging markets can integrate into established ecosystems without waiting for domestic infrastructure maturity.

Market Losses Highlight Universal Fragility

The closures in Singapore and Macau, combined with Malaysia's loss of Penang, illustrate vulnerabilities affecting racing globally, not confined to any single region.
"We've seen great growth in the Gulf States, but there's been a retraction with the loss of racing in Singapore and Macau, and even Malaysia has lost one of their main tracks more recently in Penang. So, we have to be mindful to continue to grow, and these developing emerging nations need all the support they can get."

Against this, tentative recovery signs emerge. "There's a new track opening in the Philippines and in Thailand. There's some investment going in there, and Korea continues to grow. So, there are some green shoots around Asia, and we must foster and build their industries. So, they are part of the global footprint that is Thoroughbred racing."

International Cooperation Frameworks Prove Essential

Sherwin's dual role representing developing nations on international bodies gives him unique perspective on cooperation mechanisms serving racing globally.
"Broadly speaking, one size is not going to fit all countries in terms of an operational and development model. I think the developing nations have a great resource in the Asian Racing Federation and the IFHA, the International Federation, and the Secretariats that help them."

He highlights institutional support structures serving racing worldwide. "The ARF Secretariat, for example, is underwritten by the Hong Kong Jockey Club, and we're very grateful for their input. They are an invaluable resource, and they're regularly in touch with these developing and emerging countries, guiding them in the right directions around protocols and guidelines."

Rule Harmonisation Challenges Transcend Borders

Even as racing authorities celebrate cooperation improvements, Sherwin identifies rule harmonisation as a global challenge, particularly regarding whip regulations that vary dramatically across all jurisdictions.

"I don't believe we have significant barriers, but there are a number of challenges. Sport integrity and rules harmonisation are always areas we need to work harder on. For example, the differing whip rules are extremely challenging at the present time. What is acceptable in Asia, for example, might not meet the threshold for expectations in European countries."

Beyond regulatory divergence, Sherwin identifies deeper structural issues. "We also have to remain vigilant around having a sport that is drug free and a level playing field for all participants. That's non-negotiable. Another challenge on an individual level is self-interest. Countries and individuals have to be introspective. We also need to collaborate better. Too often we work in silos."

Despite these challenges, Sherwin remains optimistic about existing international frameworks. "We have great forums and contact points through the Asian Racing Federation and the International Federation."

International Forums Catalyse Global Progress

The Asian Racing Conference serves as one of several critical platforms enabling international cooperation, according to Sherwin.
"The ARF, the Asian Racing Conference, is brilliant for collaboration, building relationships, and making plans, both short-term and longer-term. The ARC business programme for the week invariably covers the key topics, the opportunities and the challenges we face for the industry to move forward."

"The ARC also becomes a terrific touchpoint for developing nations, especially those emerging. Being able to make these contacts and then call on these people at a later date is an invaluable asset for all industries and countries worldwide."

Global Innovation Requires Abandoning Rigid Tradition

When addressing the conference theme "Honouring Tradition, Shaping The Future," Sherwin articulates a philosophy applicable to racing jurisdictions worldwide.
"The sport's foundation has been shaped by tradition. That said, I'm not convinced that it's a delicate balance between tradition and shaping the future. I think we face an evolving and challenging landscape that changes very quickly, and we have to be prepared and embrace that change. I would actually prefer we push boundaries and explore. Not all decisions we make will be the right ones. We'll make errors, but we'll learn along the way. So, in summary, respect tradition and the great history of our sport, but be adaptive, challenge, evolve and ultimately grow."

International Council Demonstrates Cooperation Success

When asked to identify successful international cooperation examples, Sherwin immediately highlights the Anti-Illegal Activity Council, which now serves racing globally.
"One of the great challenges to racing globally at present is the illegal operators and the markets available illegally, which contribute nothing back into our sport. So, the development and the growth of the Anti-Illegal Activity Council has been a testament to international racing cooperation."

"The genesis of this council came from the Asian Racing Federation, and it has grown and transitioned into an international resource and is now under the umbrella of the International Federation. More recently, we've seen South Africa use the Anti-Illegal Activity Council to address illegal markets, and also the UK has called on their skills and resources."

Shared Global Goals Transcend Regional Competition

Sherwin's vision explicitly rejects competitive regional framing in favour of recognising universal challenges and shared objectives.
"While the Asian region is seeing great growth and development through the Gulf States, the retraction in the region with the likes of Singapore and Macau has a regional impact."

"I think we all love to see great champions in action on the track, and the crowds and followers that cheer them home. So, we're all very much in the same melting pot. The sport is global, and while we take great pride in our country's performances, I think we ultimately share a common goal of what is best for Thoroughbred racing and breeding. If the sport can articulate its integrity, its quality and its welfare, and communicate that effectively, then we're all going to be winners."

As global racing confronts simultaneous expansion and contraction across multiple continents, Sherwin's internationally focused perspective offers crucial insight. His message transcends regional boundaries. While celebrating substantial investments in the Gulf and China's emergence, he warns that racing worldwide cannot afford complacency about vulnerable markets or assume growth in one region compensates for losses elsewhere.