Monday, 30 June 2008: Corporate bookmakers are mustering to mount a legal challenge to the controversial race fields legislation passed in NSW last week.
And moves in Victoria to embrace the Northern Territory-based operators as well as betting exchange Betfair threatens to undermine the NSW legislation before it is enacted by Racing NSW.
Sportsbet, one of the Northern Territory's leading corporate bookmakers, has taken Racing Victoria to the Supreme Court claiming Victoria's one percent tax on the use of race field is unconstitutional.
A weekend report says Racing Victoria is to drop its defence of the Sportsbet action and allow the corporates and Betfair to pay a fee based on gross profits to operate on Victorian racing.
The NSW legislation empowers Racing NSW to charge a fee of up to 1.5 percent of a wagering operator's annual turnover for the right to use NSW race fields as a platform for betting on NSW racing.
Sportsbet chief executive Alan Tripp has promised legal action to block the imposition of a race fields fee based on turnover and is calling an urgent meeting of all corporate bookmakers and Betfair to formulate a united response to the NSW legislation.
"NSW Racing can be assured they will end up in court,” Tripp told the Melbourne Herald Sun.
"We will fight this all the way to the High Court if necessary.
"All corporate bookies and Betfair are prepared to pay a fee to bet on their races.
"However, no business in the world is expected to pay on turnover.
“The only fair and reasonable tax is based on profits.
"We will leave no stone unturned to quash this new legislation.
“This tax would put us, and most other corporate bookmakers, out of business, at least here in Australia.
"I don't think NSW Racing is aware how such a tax imposition will affect this industry.
“If we are forced offshore hundreds, if not thousands, of jobs will be taken out of Australia and millions of dollars in turnover.”
Tabcorp, recently granted a corporate bookmaker licence by the Northern Territory Government, supports the NSW race fields tax.
Tabcorp has confirmed it will comply with the regulation and pay whatever fees are required to operate as a corporate bookmaker on NSW racing out of Darwin.
