Last Friday, New South Wales Government celebrated a big win, The High Court rejected Sportsbet and Betfair’s claims that the decision to impose a 1.5 percent wagering turnover fee for the right to publish New South Wales race fields was unconstitutional on the grounds that it is discriminatory and protectionist in its nature.
Betfair and Sportsbet objected to being taxed on the amount of money they turned over in New South Wales. Instead they argued that they should be paying a percentage of their gross profits.
The case stemmed from legislation passed in 2006 which allowed NSW racing authorities, to impose the fee as a right to charge fee to betting agencies for use of racing information..
Sportsbet says it has paid more than $50 million in product fees to Australian racing and sporting bodies.
It expected to pay more than $15 million in product fees in 2012.
Sportsbet Executive Chairman, Matt Tripp, who also founded Sportingbet Aust, expressed concern that last Friday’s decision may lead to reduced income for racing.
“As has been proven by the increase in wagering turnover since the emergence of corporate bookmakers, competition stimulates choice and in turn drives growth and revenue to racing. Giving the TAB a walk-up start will hinder competition, and restrict growth which may harm revenues to racing.” Tripp said.
“However, we will continue to provide competition to the TAB by providing our one million-plus customers with the best prices, the best range of products, and the best service in Australia. For every dollar staked, the TAB takes more than twice as much from punters as we do. This won’t change as a result of the court’s decision,” he added.
“If product fees are pushed too high, it has the potential to reduce both competition and consumer choice, to reduce racing’s wagering appeal compared to sports, and ultimately some wagering operators may decide to relocate offshore.”
The recording below gives full details of the entire transcript from report.
Reported by Maggie B.
