Australian gambling and entertainment group Tabcorp Holdings Limited has served a writ in the Victoria Supreme Court against Racing Victoria Limited (RVL) in a dispute over interstate betting fees.
Tabcorp is taking issue with RVL’s policy of imposing a fee based on ten percent of gross revenues, which increases to 15 percent during the spring carnival season.
According to a piece in The Daily Telegraph newspaper, the Supreme Court for the southern Australian state has scheduled a ‘directions hearing’ for February 20 and quoted Rob Hines, Chief Executive Officer for RVL, as stating that his firm would ‘vigorously defend its ability to impose such a product fee’.
Under the current revenue-based model, the horseracing sector receives a percentage of bookmakers' revenues. Tabcorp stated that this policy is ‘unfair and incorrectly imposed’ and would like to see a turnover-based model used, which would see the industry get a percentage of all money wagered.
'Tabcorp is taking action to challenge a decision by RVL to impose fees for Victorian thoroughbred race fields on TAB Limited,' said a spokesperson for Tabcorp.
'We are not at war with the Victorian racing industry. We support the imposition of a race fields fee based on a percentage of turnover but not as a percentage of revenue.
'Tabcorp does not support a revenue model as it discriminates against the homegrown totalisator in favour of the bookmakers. Don't forget, it is the totalisator that generates the vast majority of funding for the racing industry. A strong totalisator will ensure a strong, vibrant and healthy racing industry.
'The turnover-based model is the only model that can generate enough funding to put on the show and ensure that the Australian racing industry remains one of the best and most well-financed in the world.'