Betfair proposes 20% of gross revenue fee for all

Betfair today corrected a number of important factual errors in the ongoing debate about industry funding and in doing so opened the door for Racing NSW to generate more than $10 million a year in extra product fees.. At a media briefing in Sydney, Betfair's CEO, Andrew Twaits, said the industry would benefit greatly if the basis for industry funding was applied consistently across all wagering operators. "There's been some heated debate around the issue of industry funding, with stakeholde

Betfair today corrected a number of important factual errors in the ongoing debate about industry funding and in doing so opened the door for Racing NSW to generate more than $10 million a year in extra product fees..

At a media briefing in Sydney, Betfair's CEO, Andrew Twaits, said the industry would benefit greatly if the basis for industry funding was applied consistently across all wagering operators.

"There's been some heated debate around the issue of industry funding, with stakeholders quite naturally expressing concern about the future viability of the racing industry. In all the hysteria, some of the facts have been lost or distorted, including the basis on which Betfair believes it should contribute to the funding of the racing industry.

"Let me be very clear on this. We have offered to pay the industry on gross revenue - that is, on the same basis as the TABs in NSW, QLD and Victoria. Further, we think 20% is the right amount and we'll pay at that rate if everyone else does the same.

"Racing NSW has set the fees for TABs at just 9.375% of their gross revenue. If Racing NSW sets its product fees at 20% (of gross revenue) for all wagering operators, we believe they would be likely to generate more than $10 million per year in extra product fees for the industry. That is in addition to the undisputed element of the product fees Racing NSW is already charging interstate operators.

"Whilst no one likes paying more tax, we've consistently said that 20% is the right amount for race fields. We'll pay it if our competitors do the same.

"What we won't do is pay tax at a rate that's six times higher than our competitors. That's a recipe for us going out of business."

Mr Twaits concluded; "We're determined to see the nation's racing industry prosper, and we're prepared to pay our fair share to help achieve that result."