Racing Victoria (RVL) will lobby the incoming Victorian government to amend legislation regarding the taxing of corporate bookmakers to mirror NSW legislation.This and three other points of action will be taken by RVL in the wake of Wednesday's landmark Federal Court victory for Racing NSW's turnover tax model.The Federal Court's decision permits Racing NSW to charge bookmakers a 1.5 per cent turnover tax.RVL signed an agreement with Sportsbet in early September for a 10 per cent gross profit le

Racing Victoria (RVL) will lobby the incoming Victorian government to amend legislation regarding the taxing of corporate bookmakers to mirror NSW legislation.

This and three other points of action will be taken by RVL in the wake of Wednesday's landmark Federal Court victory for Racing NSW's turnover tax model.

The Federal Court's decision permits Racing NSW to charge bookmakers a 1.5 per cent turnover tax.

RVL signed an agreement with Sportsbet in early September for a 10 per cent gross profit levy - 15 per cent for the six weeks of the spring carnival - which it is claimed returns about one-third of the revenue of the turnover tax.

RVL CEO Rob Hines stated on Friday that RVL would obtain legal advice on what needs to be done under the existing Joint Venture Agreement and the proposed Partnership Agreement, for operation post-2012, to ensure constitutional validity.

He said previous attempts in July 2010 to persuade the Victorian government to amend the legislation had not been acted upon.

"But this decision provides us with a powerful argument for the need for government action," Hines stated.

It is estimated that Racing NSW will receive more than $120 million in back taxes from the corporate bookmakers and Victoria will be $50 million a year worse off until Victoria's agreement ceases in August 2012.

RVL will suspend indefinitely negotiations to enter into agreements with the other corporate bookmakers and Betfair.

Hines stated arrangements had been completed with the interstate totes and Sportsbet but had not been finalised with Betfair and the other corporate bookmakers.

Those arrangements had been to provide certainty of income for RVL and avoid litigation risk which was created by the legal challenges in NSW.

The RVL Board will meet to review the Victorian race fields policy in light of the Federal Court's decision, and if prizemoney in NSW increases to the point of "competitive advantage" the planned review of prizemoney for 2012-13 will be brought forward to 2011-12.

Such was the victory for Racing NSW, it has already announced a substantial increase in prizemoney levels at all city, provincial and country meetings.

From July 2011, prizemoney for Saturday meetings in Sydney will increase from $70,000 to $100,000 a race, midweeks from $27,000 to $35,000, provincial from $16,000 to $25,000 and country races from $10,000 to $15,000.

Caulfield trainer Rick Hore-Lacy said he had advocated two years ago that bookmakers be taxed on turnover rather than profits.

"I think you'll find that some of the trainers will set up satellite stables in Sydney and will be racing there instead of here. That's definitely going to happen," he said.

Victoria's reigning premier trainer Peter Moody said he would re-evaluate whether he stayed in Victoria or moved to NSW unless RVL quickly moved to a turnover-based model.

"If the (RVL) board doesn't go for this turnover model, we're doomed," he told the Herald Sun.

Thoroughbred Racehorse Owners' Association (TROA) chairman Andrew Lafontaine said the issue put more pressure on RVL chairman Michael Duffy to retire from the RVL board prior to next month's election.

TROA said its call in August not to lock in bookmakers on a profits tax was ignored and it has called for a full briefing by RVL to racing shareholders.

Betfair and Sportsbet have 28 days to seek leave to appeal the NSW decision to the High Court.