The wagering landscape in Australia is in for a big overhaul following yesterday's release of a Federal Government Productivity Commission report, which was savaged by Racing NSW chief executive Peter V'landys.
''It's obvious the Productivity Commissioners have listened to wagering operators at the expense of the people who put on the show,'' V'landys said in a statement yesterday. ''The Productivity Commission allowed presentations from a myriad of wagering operators but at no time sought to provide Racing NSW with the opportunity to make a presentation on behalf of its 50,000 participants.
''The two most ridiculous recommendations are that an independent organisation set the price of that racing product. Does that mean every commercial operation in Australia could have its price set by someone other than themselves - which could send them broke?''
Michael Sullivan, who heads Australia's biggest corporate bookmaking operation Sportingbet, called for the immediate implementation of the 46-page draft report, which was based on 264 submissions from all sections of the industry.
''The commission spoke about a lack of competition leading to a lack of innovation with products and competitiveness of price,'' Sullivan said. ''The underlying focus is on competition is good, and I've been saying that for 10 years. And don't forget, for once we've got something that focuses on the punter … ''
Betfair chief executive Andrew Twaits welcomed the report but was reserved in comment as the betting exchange is in court with Racing NSW over its controversial race-fields levy.
''The commission has endorsed the key arguments we have been making for several years,'' Twaits said yesterday.
Despite corporate bookmakers increasing turnover at an astonishing rate, the Productivity Commission said state and territory TABs ''still hold a significant degree of power''.
''This has resulted in poor outcomes for consumers, and is a constraint on the future growth of the wagering industry,'' the government report stated. ''Current funding arrangements do not efficiently allocate resources to the racing industry.''
The commission said the off-course monopoly enjoyed by the various TABs ''means that consumers have worse odds then those that a competitive market would deliver''.
A warning was issued in regard to TABs taking out 16 to 20 cents from each dollar wagered by the punter for it ''increased the incentive of punters to seek out better returns in other forms of gambling or switch to other type of entertainment''.
The report has called for a national approach to wagering revenue because the laws and regulations imposed by states and territories are not working.
''These arrangements have led to the inefficient allocation of resources for racing at a national, state and club level,'' it said.
In regard to a fee structure, the commission calls for a ''a single 'price' model''. The report also called for all wagering operators to pay the racing industry on gross profit not turnover tax.
Racing NSW collects fees from betting operators through race-fields legislation based on turnover tax.
A TAB spokesman yesterday said it would be making no comment about the report until after studying it in detail. (Credit: Fairfax)
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