Betfair sets the record straight on NSW industry funding by lindahy


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Media Release
11 June 2009

      Betfair sets the record straight on NSW
                  industry funding

Betfair today corrected a number of important factual errors in the ongoing debate about industry
funding and in doing so opened the door for Racing NSW to generate more than $10 million a year in
extra product fees.

At a media briefing in Sydney, Betfair’s CEO, Andrew Twaits, said the industry would benefit greatly if
the basis for industry funding was applied consistently across all wagering operators.

“There’s been some heated debate around the issue of industry funding, with stakeholders quite
naturally expressing concern about the future viability of the racing industry. In all the hysteria,
some of the facts have been lost or distorted, including the basis on which Betfair believes it should
contribute to the funding of the racing industry.

“Let me be very clear on this. We have offered to pay the industry on gross revenue – that is, on the
same basis as the TABs in NSW, QLD and Victoria. Further, we think 20% is the right amount and
we’ll pay at that rate if everyone else does the same.

“Racing NSW has set the fees for TABs at just 9.375% of their gross revenue. If Racing NSW sets its
product fees at 20% (of gross revenue) for all wagering operators, we believe they would be likely to
generate more than $10 million per year in extra product fees for the industry. That is in addition to
the undisputed element of the product fees Racing NSW is already charging interstate operators.

“Whilst no one likes paying more tax, we’ve consistently said that 20% is the right amount for race
fields. We’ll pay it if our competitors do the same.

“What we won’t do is pay tax at a rate that’s six times higher than our competitors. That’s a recipe
for us going out of business.”

Mr Twaits concluded; “We’re determined to see the nation’s racing industry prosper, and we’re
prepared to pay our fair share to help achieve that result.”


For more information on industry funding visit

Notes to Editors:

    1. Attachment: Funding Facts v Fictions PDF

    2. Betfair has made the following product fee contributions to Australian racing:


        -   Pre-licence (2003-2006): 20% of gross revenue accrued to each State racing authority
        -   Post-licence (2006-now): 20% of gross revenue paid to Tasmania as a product fee, plus
            tax of 15% of gross revenue.
        -   Betfair is also paying product fees under State race fields legislation where required to do

    3. To date, all states racing authorities have accepted accrued product fees except those in
       NSW and QLD. Accrued product fees total over $4 million (on then-current exchange rates),
       including $1.4 million for Racing NSW. Total product fees paid to Tasmania are approximately
       $10 million, plus another $7 million in tax. Total race fields fees paid to Racing NSW since 1
       September 2008 are over $1.8 million.


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