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Racing clubs cut Gambling and Racing out of the loop

By 12 February 2013 3

Joy Burch has announced the passage of new racing laws:

New laws enabling the ACT racing industry to directly set and collect product fees from wagering operators that bet on their racing meets passed unanimously in the Legislative Assembly today.

The product fee is a charge that is paid to the ACT racing clubs for use of their race field information by licensed wagering operators. Until now the fee has been set by the racing clubs but collected on their behalf by the ACT Gambling and Racing Commission.

ACT Minister for Gaming and Racing Joy Burch said the ACT’s three racing clubs had asked the Government to introduce the changes.

“I am confident these changes will help to support the racing industry by giving the controlling bodies the flexibility to maintain a race field information charge scheme that is flexible and relevant to the local conditions.” Ms Burch said.

“Amendments to the Territory’s model are necessary in response to emerging developments in the charging models across Australia, including a High Court decision in relation to the NSW model last year.”

The changes will commence from 1 March 2013 and will be consistent with the general approach taken in Victoria and New South Wales. Under transitional arrangements the ACT Gambling and Racing Commission will act as an agent for the controlling bodies until June 2013.

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3 Responses to Racing clubs cut Gambling and Racing out of the loop
#1
joingler11:44 am, 12 Feb 13

I have read this 3 times and still can’t make sense of it. Could someone with a little more intelligence than me explain it for me?

#2
Pork Hunt11:59 am, 12 Feb 13

joingler said :

I have read this 3 times and still can’t make sense of it. Could someone with a little more intelligence than me explain it for me?

Read the first paragraph and then the last sentence of the second and voila, it all makes sense.

#3
Gismondo12:12 pm, 12 Feb 13

The ACT racing industry charges wagering operators in Australia a ‘product fee’ which enables these wagering operators to offer betting products on ACT races to their customers. ie Sportsbet et al could offer odds for ACT races to their customers. Yes they had done this previously but had never paid for the privilege. I think the fee was set at 1.5% on turnover so if a wagering operator held $10,000 worth of bets on an ACT horse race, they would pay the ACT racing club $150

The fee was set by the ACT racing clubs but had been collected by the ACT government. This amendment allows the ACT clubs to directly set and collect product fees from wagering operators that bet on their racing meets.

This brings in to line with NSW who won a court case last year that allowed them to set a fee based on turnover, not profits.

This change to me looks like a precursor to the sale of ACTTAB?

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