I have started a deep dive into RTH following the brilliant writeups from @mushroompanda and @Wini .

The thing I am focused on most is working out RTH's moat and the strength of that moat. I like the moat of my companies to be such that the broader industry has to depend on what my companies supply to operate so that once in, the keys get thrown way and customers are highly and as completely dependent as possible - muahahaha-like ...... SDR, AIM, XRF, CAT, C79 are my core holdings from this perspective.

I am still working out exactly what RTH's moat is. Currently, I see this as "essential service provider to the horse racing industry".

Hence the deeper dive into the broader horse racing industry to work out how and where RTH plays. The following is what I have found via ChatGPT. Have not validated every point, but have asked the question from multiple angles and the same answers emerge ... Am going from big picture, then narrowing down to key players, RTH's offerings and RTH's positioning.

I have very little understanding of the gaming, waging and horse racing industry, so this was/is a highly insightful exercise to gain a better understanding.

Will post in parts to make each post manageable as I work through each part.

A. MAJOR HORSE RACING JURISDICTIONS (Ranked by Global Importance)

Horse racing is highly regional, and the “major jurisdictions” are usually ranked by betting turnover, prestige of races, and international reach. Here’s a breakdown of the leading jurisdictions:

1. United Kingdom & Ireland

• Why important: Historical home of modern racing, huge calendar of flat and jumps races.
• Turnover: Among the largest globally; betting turnover ~£10–12 billion annually.
• Key Events: Royal Ascot, The Derby (Epsom), Cheltenham Festival, Grand National.
• Global Influence: Major source of breeding (Newmarket, Ireland’s Coolmore), media rights, and content exports.
• Deep media, form/trading ecosystem (Timeform, Racing Post), significant retail and online betting culture.

2. Japan

• Why important: Japan Racing Association (JRA) is one of the richest racing bodies in the world.
• Turnover: Exceeds US$25 billion annually, making Japan the single largest wagering market.
• Key Events: Japan Cup, Arima Kinen, Tokyo Yushun (Japanese Derby).
• Global Influence: Ultra-strong betting pools, world-class horses (Deep Impact, Equinox), and highly regulated integrity model.
• Extremely large pari-mutuel handle (JRA + NAR combined), high local attendance and strong domestic industry economics. (Horse Racing in Japan)

3. Australia

• Why important: Huge domestic engagement; racing is a major national sport.
• Turnover: Approx. A$25–30 billion annually across thoroughbreds, harness, and greyhounds.
• Key Events: Melbourne Cup (“the race that stops a nation”), The Everest, Cox Plate, Magic Millions.
• Global Influence: Leader in tote and fixed-odds betting integration, data exports, and digital wagering.
•  TAB systems and major racing events (Melbourne Cup) create major seasonal spikes; Tabcorp is a large local player.

4. Hong Kong

• Why important: Hong Kong Jockey Club (HKJC) is the most profitable racing organisation globally.
• Turnover: ~HK$300 billion (~US$38 billion) annually in racing and football betting combined. Racing alone contributes over US$20 billion.
• Key Events: Hong Kong International Races (HKIR), Champions Mile.
• Global Influence: Model of efficiency, integrity, and technology-driven betting. Limited number of race meetings but massive liquidity in pools.
• Very high turnover per capita; HKJC is a global wagering hub and uses simulcast/commingling heavily. (corporate.hkjc.com)

5. United States

• Why important: Huge racing history, though fragmented across states.
• Turnover: US pari-mutuel handle ~US$12 billion annually (mostly thoroughbred).
• Key Events: Kentucky Derby, Preakness, Belmont Stakes (Triple Crown), Breeders’ Cup.
• Global Influence: Source of speed-oriented bloodlines; challenges include integrity and declining on-track attendance.
• Fragmented (track-level pools, ADWs, simulcast networks, and newly expanded sports-betting ecosystems) with big commercial data businesses (Equibase, DRF). (Equibase)

6. France

• Why important: Central to European racing and breeding.
• Turnover: ~€7 billion annually (via PMU).
• Key Events: Prix de l’Arc de Triomphe, Prix du Jockey Club.
• Global Influence: Strong breeding industry, major role in international commingling pools.
•  PMU is one of Europe’s largest pool operators and central to trotting & gallop betting in EU. (SBC News)

7. Middle East (UAE, Saudi Arabia, Qatar, Bahrain)

• Why important: Wealth-driven racing centres with huge prize money.
• Turnover: Smaller domestic betting markets (betting largely restricted), but massive investment in prize money.
• Key Events: Dubai World Cup, Saudi Cup (world’s richest race, US$20 million).
• Global Influence: Draws the world’s best horses and boosts international prestige, even without betting-driven turnover.

8. Singapore (declining)

• Why important: Once a strong Asian jurisdiction. Singapore Turf Club ran the Kranji Mile.
• Turnover: Falling; racing is being phased out (final meeting held in 2024).
• Global Influence: Once a hub, now diminished.

9. Other Notable Regions

• South Africa: Strong local breeding and racing, with key events like the Durban July.
• South America (Argentina, Chile, Brazil): Rich bloodstock history, particularly Argentina. Betting turnover is smaller but horses are internationally respected.
• Korea: Expanding jurisdiction with rising betting volumes.

Ranking Summary (by Turnover & Influence)

• Japan – #1 in betting turnover (~US$25B+)
• Hong Kong – Highest per-race turnover (~US$20B+)
• Australia – Massive turnover (A$25–30B) + global data/content hub
• UK & Ireland – Historic prestige + large turnover (~£10–12B)
• United States – Big races, fragmented regulation (~US$12B)
• France – Strong betting pools (~€7B) + Arc prestige
• Middle East – Prize money powerhouse (Saudi Cup, Dubai World Cup)
• South Africa, South America, Korea – Regionally strong, smaller global influence

So: Japan, Hong Kong, Australia, UK/Ireland, and the U.S. are the “Big Five” racing jurisdictions that dominate by turnover, prestige, and global reach.

B. KEY INDUSTRY REVENUE DRIVERS

Betting turnover / pari-mutuel pools — on-course and (increasingly) off-course/mobile wagering is the single largest cashflow for racing ecosystems; commingling / world-pooling increases liquidity and revenue. (Example: major racing authorities report tens of billions in annual turnover). (corporate.hkjc.com, Horse Racing in Japan)

Takeout / commission / GGR — operators and race authorities keep a percentage (takeout) from stakes; variations in tax and takeout policy substantially affect industry economics.

Broadcasting & streaming rights — live race feeds and race-day video feed licensing (to bookmakers, streaming platforms, media) are a growing revenue line.

Data & analytics licensing — selling live feeds, historical data, form, ratings, odds feeds and APIs to operators, tipsters, exchanges and media.

Sponsorship, hospitality & first-day/event income — marquee races (Derby, Melbourne Cup, Dubai World Cup, Breeders’ Cup) generate ticketing and sponsor revenue.

Ancillary tech & services — trading/odds engines, pools management, integrity/ADIS services, virtual/virtualisation products (e.g., virtual racing, simulcasting) and now NFTs/metaverse experiments.

C. SIZE OF THE INDUSTRY

Market-size estimates vary widely depending on scope (just wagering? include breeding/prize money? hospitality? global GDP impact?). Selected published estimates show the variance: some industry reports place the global horse-racing market in the low hundreds of billions USD (e.g., ~USD 430–490B range for mid-2020s in some market reports), while others show larger or faster growth projections depending on inclusion of related segments and aggressive CAGR assumptions. Expect large but methodological variance between providers — use specific definitions for precise planning. (deepmarketinsights.com, Dataintelo)

Quick takeaway: wagering/GGR is the biggest single measurable line; national turnovers like JRA and HKJC are telling indicators because a few jurisdictions account for a large share of global racing handle.) (corporate.hkjc.com, Horse Racing in Japan)

D. MAJOR BETTING/RACING PLAYERS WHO ACTUALLY DRIVE TURNOVER

Racing authorities & public operators (often among the largest single-jurisdiction turnovers):

• Hong Kong Jockey Club (HKJC) — one of the world’s largest single-jurisdiction wagering operators by turnover. (corporate.hkjc.com)
• Japan Racing Association (JRA) — huge pari-mutuel turnover (trillions JPY; JRA publishes detailed annual stats). (Horse Racing in Japan)
• PMU (France), Australia TAB / Tabcorp, UK Tote / British Racing, USA (track-level pools + ADWs like NYRA Bets / TwinSpires) — all major national anchors.

Private/global bookmakers & betting groups who take significant horse racing handle: Flutter (Paddy Power/Betfair), Entain, Bet365, Caesars/William Hill, FanDuel (via its sportsbook brands), BetMGM — these companies use horse content to drive engagement across sportsbooks (fixed-odds + exchanges + pools).

Specialist pools/retail ecosystems — many jurisdictions retain national monopolies or dominant pools (eg PMU in France, Tabcorp in parts of Australia, HKJC in Hong Kong). (SBC News)

E. TECHNOLOGY AND INDUSTRY TRENDS TO WATCH

Commingled world pools & simulcasting — increases liquidity for big races and lets smaller jurisdictions plug into global turnover (HKJC/World Pool model). (corporate.hkjc.com)

Streaming + in-bet live video — operators paying for high-quality feeds; data+video sold as a bundle.

B2B trading & odds automation (AI/ML for pricing, liability management) — reduces margin leakage and improves margins on live betting.

Integrity tech — demand for real-time monitoring, geo-fencing, anti-fraud and betting-integrity solutions is rising.

Virtual & NFT experiments (ZED RUN and similar) — new fan engagement products and secondary markets, though niche vs. core wagering. (Axios)

What this means if you’re a vendor / investor

Sell liquidity + content: the best commercial propositions bundle live video + reliable data + commingling options. (Operators prioritize liquidity and reliable odds.) (corporate.hkjc.com)

Regulatory & tax regimes matter: jurisdictions’ takeout, taxes and legal framing (pari-mutuel vs fixed-odds) materially alter market opportunity. (See France, India local issues.) (BloodHorse, The Times of India)

Platform reliability & scalability are table stakes — big events and pools generate huge transaction spikes (OpenBet, Kambi cited as scale-capable platforms). (Wikipedia, Kambi)