Tabcorp Wants Government Action To Stem Losses To Nt

The Age

Wednesday November 5, 2008

Jesse Hogan, Gaming Reporter

TABCORP is pleading for immediate government intervention, through tax cuts and increased protection for licensed tote operators, to halt the slide of punters' cash to its Northern Territory rivals.

The company, owner and operator of the TAB in Victoria, took $36.5million in bets on the Melbourne Cup - 10.3% up on last year's event, which was undermined by equine influenza, and only 5.5% more than was wagered on the 2006 Melbourne Cup.

The results were even more underwhelming if you include the other nine races besides the cup yesterday. The $64.8 million Tabcorp took over the 10 events was only 3.5% higher than in 2007, and 3.2% higher than in 2006.

Tabcorp's claim that the subdued growth was due to "leakage" to other betting agencies rather than slower wagering growth in general, was seemingly backed in its own results for its fixed-price Sportsbet race betting, which generated $10 million in revenue yesterday, a 30% improvement on last year (albeit helped by the recent introduction of Tabcorp's own Northern Territory bookmaker, Luxbet).

The company believes last month's relaxing of advertising regulations in Victoria and NSW, which lifted a ban on the lower fee-paying NT operators' advertising, has triggered $20 million in gaming turnover shifting from the TAB, which will in turn cut royalty payments to the racing industry.

The State Government this week announced the racing industry would be given tax concessions to compensate the loss of gaming machine royalties when the Victorian licences change in 2012. However, Tabcorp chief executive Elmer Funke Kupper said the issue had to be examined with a "greater sense of urgency".

Tabcorp's demands include: an "immediate" 3% cut in the state's wagering tax rate, with similar annual cuts until 2012, a ban on bookies offering tote odds as well as their own for races, uniform gaming operators fees across Australia, and a national ban on introductory "free" bets and credit betting.

"Not only do bookmakers now simply copy tote prices, they can give a better price as they operate from jurisdictions where taxes and racing industry contributions are minimal," Mr Funke Kupper said.

The complaints came on the eve of the State Government's release today of expressions of interest guidelines for the state's exclusive tote wagering licence, which lapses in 2012.

While Tabcorp hopes to retain its licence, it also believes the exclusivity of it - and in turn value - is being undermined by the increasing encroachment of interstate bookmakers. The company is also pushing for a national wagering review, to quantify the financial effects on the racing industry of the "significant changes" to gaming regulation being approved by state governments.

Mr Funke Kupper said: "Basically, we're making it up as we go, state by state, in what is a national industry. This cannot work."

© 2008 The Age

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