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Racing Victoria imposes substantial hikes on bookmakers fees

Friday May 16,2014 :  RACING FEES HIKED IN AUSTRALIAN PROVINCE
 
Racing Victoria imposes substantial hikes on bookmakers fees.
 
Online and retail bookmaking companies in Australia will soon feel the sting of substantially increased fees following the announcement today May 16,2014 by Racing Victoria that it will adopt a blended model in charging what is known as 'race-fields fees in order to garner more income in particular from the fast-growing online bookmakers.
 
Fees for online betting, fixed odds and derivative betting will be the higher of total wagering turnover or a cut of bookmaker ''gross revenue'' or profits, reports WA Today.
 
The changes will hit stock exchange-listed operators such as Tabcorp, which has a joint venture with Racing Victoria for parimutuel or tote betting and a corporate bookmaking business in Luxbet, as well as online operators such as Sportsbet, Sportingbet and Betfair, the newspaper notes.
 
The Racing Victoria move creates a difference between it and Racing New South Wales, which uses a turnover business model following its successful court case two years ago against online bookies.
 
Under the new Racing Victoria arrangement online bookmakers will have to pay the higher of 1.5 percent of turnover or 15 percent of gross revenue for 440 standard race meetings in Victoria with effect from July 1 this year.
 
The 45 meetings containing a group or listed race will see a charge or either 2 percent of turnover or 20 percent of gross revenue charged, with the figures rising to 3 percent of turnover or 30 percent of gross revenue for the 10 premium group 1 meetings, including the Melbourne Cup.
 
Traditional parimutuel or tote betting will be levied with a charge of 1.5 percent of turnover for standard meetings, 2 percent of group or listed race meetings and 2.5 percent for the 10 premium group 1 meetings.
 
Racing Victoria received $78 million in race-field fees in 2013 on its turnover business model for all race-field fees, with a rate of 1.5 percent for standard meetings and 2 percent for group, listed and premium group 1 meetings.
 
The implementation of its new rates will be watched with interest by Racing NSW and Racing Queensland, who are also set to raise fees before the end of June.

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Gambling News :

Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

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Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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