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Great result for the industry in Australia on Wednesday, with the Federal Court ruling that Betfair and Corporate bookbakers would have to pull their weight by paying a turnover based fee. This will free up funds collected over recent years, but more importantly provide a secure source of revenue for the future. Hopefully the litigants will not pursue a final appeal in the High Court and the parties can move forward together for mutual benefit.
Totally disagree with you Termite, obviously with my punters hat on it means the punter gets bitten as usual but even ignoring that fact, it means less return for participants in general and was purely a win for TabCorp and an actual loss for racing. Quite simply it was TabCorp taking on the corps and BF, not Racing NSW in an attempt to retain their near monopolyQuote:
Originally Posted by Termite
If you look at the figures, Racing NSW would be receiving about $240 million under the proposed Gross Revenue option instead of the $120 million V'Landys and co are crowing about. Headlines should read "Congrats TabCorp, shame on you Racing NSW for being dictated to"
Be very interested to read your thoughts as to why its a win for racing
Glad for your thoughts Sinbad. However if Betfair and Corporates would have chipped in $240 mil. under gross profits rate as you state, why would they fight through the courts against a turnover proposal which will only cost them $120mil?? Further, anyone in business or accounting will tell you that revenue/profit is very rarely an accurate reflection of the success of a firm and rarely reflects the wealth a firm creates. The industry cannot rely on rubbery financial reporting for its future funding. Also, the reaction from the Victorian Racing industry to the recent judgement indicates that Breeders, owners and trainers all think they have been dropped in it by RVL through their committmetn to the profit model for the next two year. I think there are very few people in the game that aren't rejoicing the finding of the Federal Court.
I am all for the competition created by the corporates and Betfair. Their investment and promotion in the industry has certainly grown the wagering market. I just think that the industry needs a reliable contribution from them to counter the revenue being lost by the lack of growth in Tab contributions.