Betfair Aims to Battle Racing NSW Turnover Fee

6 October 2008

Betfair, the Tasmania-licensed wagering operator, announced Friday it had issued proceedings in the Federal Court of Australia challenging decisions made by Racing NSW, or RNSW, and Harness Racing NSW, or HRNSW, to impose a 1.5 percent turnover fee for all wagering operators wishing to cover NSW thoroughbred and harness races.

“We’re happy to pay a fee to the NSW racing industry on all our wagering revenue, but the turnover fee imposed by Racing NSW and Harness Racing NSW is highly discriminatory,” Andrew Twaits, Betfair's director of corporate and business affairs in Australia, said in a prepared statement.

Mr. Twaits noted in the statement that the fee is about 60 percent of Betfair’s gross revenue but less than 10 percent of Tabcorp Holdings'.

“Both RNSW and HRNSW are fully aware that it’s impossible for us to compete on those terms,” he continued. “They’ve left us with no option but to challenge the validity of their decisions.“