RACING Victoria (RV) has today announced revised race fields fees will be applied to all wagering service providers for the publication and use of Victorian thoroughbred race fields from 1 July 2014.
Following a review of its Race Fields Policy, RV has determined that an enhanced model will be adopted which differentiates between traditional pari-mutuel (tote) betting and non pari-mutuel betting, such as fixed odds, exchange and derivative betting.
Racing Victoria Chief Executive Officer, Bernard Saundry, said the enhanced model is designed to ensure the funding of thoroughbred racing in Victoria grows with increasingly popular forms of non pari-mutuel bet types such as fixed odds and derivative betting.
In announcing its policy for the 12 month period commencing 1 July 2014, the RV Board determined;
· Fees for all pari-mutuel bets will be based solely on turnover, with a scale of rates which will be higher for premium race days, as follows:
§ Standard race meetings (440 meetings) – 1.5% of turnover
§ Meetings containing a Group or Listed race (45 meetings) – 2.0% of turnover
§ Premium Group 1 meetings (10 meetings) – 2.5% of turnover
· A scale of rates will also apply for all other betting types (non pari-mutuel bets), with a higher rate for premium race days. All other betting types will be charged the greater of, for:
§ Standard race meetings (440 meetings) – 1.5% of turnover or 15% of gross revenue
§ Meetings containing a Group or Listed race (45 meetings) – 2.0% of turnover or 20% of gross revenue
§ Premium Group 1 meetings (10 meetings) – 3.0% of turnover or 30% of gross revenue
All rates are applied on a per meeting basis.
· The annual turnover threshold, in which wagering service providers are charged at 1% of turnover, has been lifted to the first $5.5 million.
“For the last two financial years, Racing Victoria has successfully applied a turnover model for race fields fees. In FY14, this rate was 1.5% for standard meetings and 2% for Group, Listed and Premium Group 1 meetings. Historically, this model has served racing well,” Saundry said.
“RV has consulted with wagering operators and conducted an analysis of the market which has confirmed the wagering landscape is rapidly evolving and this enhanced model is a necessary modification to reflect these changes.
“Wagering revenues through race fields fees play an important part in maintaining the economic growth of racing in Victoria and these changes will provide racing with funding to invest back into the continued development of the sport.
“Pari-mutuel betting has been the main funding source for the industry for many years, however there has been a significant shift in the market towards non pari-mutuel bet types including fixed odds, best tote and exotic multiples.
“As such, RV has elected to go with an enhanced model for race fields fees. This model retains the existing turnover schedule for all bet types, with an increased rate for our 10 Premium days. The turnover rates provide a floor to funding for the thoroughbred racing industry.
“The gross revenue component of the model allows thoroughbred racing to share in the gross revenue operators earn across fixed odds, exotic and best tote bet types when their margins exceed a threshold of 10% per meeting.”
As part of the new fee structure, the scale of rates will increase across the three tiers of racing: Standard race meetings, meetings containing a Group or Listed race, and Premium Group 1 meetings.
“Premium Group 1 race meetings cost the industry more to conduct in terms of fixed costs such as prize money and deliver world class events for the state of Victoria,” Saundry said.
Saundry explained that the purpose of the enhanced model is to sustain industry funding by following the shift to increasingly popular forms of non pari-mutuel betting in a non-discriminatory way. All wagering service providers will be subject to the same race fields fees under the enhanced model and will pay the same fee in respect of each bet type category.
“This new fee model will help to grow the industry, allowing us to protect jobs and sustain the Victorian racing industry well into the future,” he said.