Racing NSW has warned that prizemoney cuts, closures of race clubs and a reduction in racing stock will be the result should its stoush with wagering operators over the racefields legislation drag on.
More than $20 million has been gathered since the September introduction of the legislation, under which all wagering operators must pay 1.5 per cent of their turnovers to Racing NSW, but it has been frozen due to Betfair and Sportsbet launching a legal challenge to its validity.
As revealed in the Herald on Monday, Racing NSW and Tabcorp are also in dispute over the 1.5 per cent payment, with Racing NSW chief executive Peter V'Landys revealing a victory for the ruling body would inject about $33m annually into the state's racing industry.
Racing NSW's newly installed chairman, Alan Brown, who, along with vice-chairman Alan Bell and V'Landys, formally addressed members of the media for the first time yesterday. They said the board's principal priority was to ensure racing remains financially viable.
Brown revealed the court challenges and any appeals could take up to 12 months and that they threatened the industry's financial wellbeing.
"We may never recover from this outcome [a loss]," he said.
The chairman revealed Racing NSW intended to write to wagering operators authorised to operate on NSW races requesting that in the event the court challenges were successful, they agreed to Racing NSW retaining the payments received to date.
Should the money not be forthcoming, Racing NSW tipped that:
■ Prizemoney would be reduced;
■ Clubs could be forced to curtail their activities and even close;
■ Investment in the industry (racing stock, etc) would fall;
■ Jobs would be lost, and;
■ Participants would leave the industry.
"Those prepared to support the industry, we'll let people know who they are," Brown said. "We would like to disclose their hand."
Brown believes Victoria, which is charging wagering operators a percentage of gross profit, and Queensland are watching the court action and should Racing NSW be successful, both states would follow its lead.
"A lot is riding on it and we intend seeing it through," he said.
He said that in 2000 $1 billion was invested with interstate wagering operators, and that this would grow to $4 billion this year.
"Of the total, $2 billion is coming from NSW punters," he said.
Racing NSW confirmed "a universal merit based handicapping system" would be in place by July 1 and that it would be an "inclusive rather than exclusionary" policy.
Former leading bookmaker and respected form analyst Dominic Beirne, a consultant to Racing NSW, was present at yesterday's meeting. The new policy will lead to a major reduction in the individual ratings of country gallopers and a drop for those on the provincial circuit to ensure they are competitive with metropolitan thoroughbreds.
The current system of fixed rating increases for winning horses and reductions for losses will be abandoned. Movements in the rating will be based on a handicapper's judgment.
"I won't be directly handicapping any horses," Beirne said. "I will be creating systems and computer programs which would inform the handicappers on the way private handicappers assess race quality."
Under the new system maiden, class 1 and class 2 races will be retained outside the metropolitan area while some restricted races will be run at Sydney Saturday meetings, although most of the races will be basically open handicaps. These will be given a rating for which the highest rated horse will carry 58 kilograms.
Should a race carry a 76 rating, a horse with a superior rating can run, but it will carry the weight for its individual rating.
In regard to setting minimum standards for clubs around the state, Brown said the most comprehensive information gathering exercise "ever embarked on in NSW" had taken place, with most clubs completing a wide-ranging questionnaire.
(Credit: The Sydney Morning Herald)
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