Racing Victoria Limited's new "economic contribution policy," followed by the departure of its CEO for Tabcorp, has led to uproar among Australia's betting industry.
The policy, presented Tuesday by Racing Victoria, requires non-Victorian bookmakers and betting exchanges to pay a fee equal to 1.25 percent of turnover from Victorian thoroughbred racing for the right to publish Victorian race fields.
Two of Australia's biggest corporate bookmakers, Sportingbet Australia and Sportsbet, have responded by threatening to sue. The fees, they say, would force them out of business.
Betting exchange Betfair Australia, meanwhile, has been confident that it will win the right (to which it has previously been denied) to publish the race fields. Despite efforts to keep Betfair on the outside, the company believes it will be approved within the framework of the new policy
"This is not anti-Betfair legislation," Betfair Corporate Affairs Director Andrew Twaits said. "We're confident we're going to get approval."
Then on Wednesday, Victoria's bookmaker, Tabcorp, dropped a bomb announcing the appointment of departing Racing Victoria Limited CEO Robert Nason to the new role of managing director of racing and media. That Nason had backed a policy--announced only one day earlier--exempting Tabcorp from any fee is not sitting well with competing betting groups.
RVL chairman Graham Duff said the move is unusual given the current state government review of the racing industry and Tabcorp's wagering and gaming licenses expiring in mid 2012.
"What is unusual in this instance is that it is not like someone has left one company to join another," Duff said. "This is sort of moving from one side of the table to the other. There is certain strategic information that he is privy to. Yes, there are some concerns; that's obvious."
But, in light of Nason's departure, Duff said his board would have an open mind on applications from interstate and off-shore operators, including Betfair.
Duff has had concerns about integrity issues with betting exchanges, but he said progress has been made to alleviate his apprehension. He also said the new policies introduced this week, before Nason resigned, were not necessarily the final criteria on which approvals would be granted.