Yes, I'm not au fait with it all either, but they operate on the USA races from Malta also, we just have access. However, TVG have pulled a legal loophole on them recently which bans them from operating on any USA meeting covered by the TVG network.

The laws are enforceable, as I understand it the gaming act in the UK differs greatly to the Australian Gaming Act. This is why the other exchanges cannot offer Australian races at all. They must be resident in Australia and licenced. I think Vanuatu and Norfolk Island got around this because they had offices in Australia as well as those areas. They paid licence fees but not tax. Betfair is different, their market share means it is worth the Clubs going after them.

Maybe they can do something similar, but I doubt it because judgements have already been made, and that's the crux of the problem now.

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After a little research, it's the Interactive Gambling Act that is the problem.

Here are some snipped passages which may provide a little more insight.

To operate on Australian race meetings, bookmakers and betting exchanges need to be licensed with the various state racing authorities. As well, betting on sport and sporting events needs licensing agreements with the sports.

Licensing agreements with racing bodies and sporting codes ensure the betting agencies pay a fee for the right to use the racefields and fixtures but also agree to co-operate fully with authorities if they become aware of any suspicious betting patterns or unauthorised sports people or officials placing bets.

a $60,000 fine every day an unlicensed agency bets on racefields

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As posted in another thread, Racing Victoria has announced they will move to turnover based fee model 'based on 1.5% of turnover, increasing to 2% during the months of October and November'.

Expect QLD et al will follow shortly.

I wonder how many years the licences are good for.

Like any business dealings , there is usually a memorandum of understanding.

If new taxes want to be imposed , that would usually be at the end of the original licence agreement rather than during.

Anything that changes could make the original agreement void.

Like we have seen with the Aust Soccer Federation where that Sports Group with a 20 year licence, have claimed the Federation has not delivered on their part of the deal and now wish to hand back their licence rather than lose any more money.

That 1.50% is a massive whack .
If betting stayed the same , that would produce billions of dollars.

I feel the authorities have zero understanding how the betting industry functions & the small profit margins that they work with.
They must see it as a small cost on top, like the Mining Tax, which it isn't, its a massive cost on top.

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Cheers.

How on earth is this sustainable for any Betfair user?
It simply isn't.
If one backs or lays more than one horse in a race, it becomes a massive hit.

I just did a realtime example @ 5% commission over a certain timespan.

Turnover $44,296.62
Profit $710.81
POT 1.60%
1.50% turnover tax -$664.45
Nett Profit $46.36
So POT drops to 0.10%
And if it goes to 2%, -$175.12, or LOT 0.39%

It cannot be successful.

So will they apply the levy to backers only, layers only, split between matched bets, or perish the thought.....both!!!!

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Over the years isn't this exactly what Peter v Landys,
Mission in life has been.

To kill off all competition from corporates betfair bookmakers,
In general so that everybody is forced to the Draconian method,
Of betting on an individual tote.

This started years ago with this bloke.
This time "UNFORTUNATELY" a huge nail,
In the coffin has been delivered against competition.

I have never seen any one person fight so hard,
And for so long to achieve this backward step.

Cheers.

Doesnt make for good reading...

Surely to be fair(ish) the 1.5% would be split between the matched bets? Although 0.75% still has a massive effect on your scenario Chrome Prince.

Guess we will find out soon enough

I'd put money on the winner paying the full 1.5%.

__________________
Pixie

"It's worth remembering that profit isn't profit until it's spent off the racecourse." -- Crash

Actually I would too Angry Pixie.
But then there's a world of trouble.
I lay 5 horses.
Lose marginally on the race, but 4 out of 5 lays are successful.
I pay additional 1.5% on 4 out of 5 of the successful lays.
I'm now losing a massive chunk rather than a small amount.

Strangely Betfair have been very quiet at this point, which may or may not be a good thing.

First cab off the rank, pull naming rights and sponsorship off Betfair Park, and pull all race sponsorship would be my retaliation. I'm not sure what it's worth to Racing Victoria, but I'm sure it would be a fair amount.

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Did Sportingbet Park fall through?
I thought from Jan 1st 2012 it was going to be Sportingbet Park, but apparently not????

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