Wagering, keno and gaming support services business Tabcorp has called for the national regulation of the wagering sector.
Tabcorp says the current state-based rules and taxation regimes are inconsistent and, in the case of the Northern Territory, unfair.
Chairwoman Paula Dwyer has welcomed the federal government’s intention to prohibit credit betting, and the National Commission of Audit’s consideration of ways in which governments can work more productively and eliminate inefficiencies between states and territories.
“These are steps that we support. But we believe the next stage is to ensure more robust, national regulation of wagering that ends state-based fragmentation and promotes a strong, sustainable and well-governed industry,” Ms Dwyer told shareholders at the company’s annual general meeting on Thursday.
“As Australian racing’s most substantial financial contributor, we want to work with the federal government in addressing the inconsistencies in Australian wagering regulation, particularly in relation to tote odds betting, as a matter of priority.”
Ms Dwyer said less rigorous conditions for corporate bookmakers in the Northern Territory, compared to those for wagering operators such as Tabcorp in Victoria and NSW, were adversely affecting the racing industry and the community.
She pointed to the areas of credit betting, wagering taxation and tote odds.
Ms Dwyer said all Australian jursidictions except the Northern Territiry prohibited or restricted credit betting, which meant that corporate bookmakers licensed in the NT could offer credit to punters regardless of where they lived in Australia.
Also, wagering taxes in the NT were much lower than elsewhere.
In the 2012 financial year, wagering taxes collected in the NT amounted to $2 million despite a turnover of more than $5.7 billion.
In comparison, Tabcorp paid $292 million in state wagering taxes in NSW and Victoria on a turnover of $10.8 billion – a proportion 77 times greater.
“We note that the Northern Territory government has announced it is reviewing wagering taxation, and we encourage them to align its rates with other states,” Ms Dwyer said.
Ms Dwyer also said that the low level of racing product fees and taxes paid by the NT-licensed corporate bookmakers, and the fact that they did not have to share revenue derived on tote odds-betting products with the racing industry, enabled them to offer punters higher tote dividends.
“Over the medium to long term, this regulatory difference will undermine racing industry funding,” Ms Dwyer said.
