Page 5428 - Week 15 - Tuesday, 8 December 2009
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This has happened before. Prior to 1961, the racing industry was largely funded by spectator admission fees and fees paid by on-course bookmakers. Of course, bookmakers such as the starting price bookmakers, or SP bookmakers, operating mainly in hotels undermined this model. In order for the racing industry to survive, this was addressed by granting licences to government-owned TABs to provide off-course retail wagering.
This gave punters a legal and convenient alternative to illegal off-course bookmakers in addition to providing an effective means of raising taxation for government. This arrangement ensured that the racing industry was paid for the use of its product through agreements between the TABs and the local racing authorities.
Something similar is happening again. With the advent of the internet and telephone betting, off-course bookmakers or betting exchanges are now offering cheap and innovative betting products across Australia 24 hours a day. While most of these new players now pay some product fees, the amendments to the Racing Act, which essentially revolve around adequate compensation for the ACT racing industry for all forms of wagering on its product, will ensure that the major players pay their fair share.
In addition, we are assured by the racing community that the revenue returned to the ACT racing industry from this amendment to the Racing Act will enable them to continue to produce a high-quality racing product, better facilities for race goers and prize money to attract quality horse and greyhound fields.
It is important in relation to this proposed revenue scheme that we at least try to balance some of the expense the ACT incurs in paying for racing products from other states. We understand from briefings provided by Treasury officials and through the Treasurer’s and Mr Barr’s offices—and we thank them for organising the briefings—that the ACT pays out close to $2.7 million a year for access to interstate betting products.
Under the proposed amendment to the act, the ACT will collect around $1.5 million from other states for allowing them to access ACT betting products. It is worth noting that the betting side of the racing industry in the ACT and in Australia is not small. Australia has the sixth highest betting turnover in the world and fourth in per capita terms, it has the greatest number of thoroughbred racing clubs in the world—379 in 2007—and it is among the top three countries in terms of the number of races held and prize money paid.
The betting turnover that occurs per race in Australia is similar to that of Canada and the United States. Figures from ACTTAB’s annual report show that $170 million was turned over on thoroughbred, harness and greyhound racing in the ACT last financial year. This leads us to the issue of what must be done by ACTTAB to play a major role in the community around responsible gaming and ongoing support of community activities.
It is all very well to have a vibrant racing industry and get our share from our racing products. We acknowledge that the racing industry provides employment, economic,
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