THE NSW thoroughbred industry's funding model will be decided in the High Court but not if Sportsbet founder Matthew Tripp has his way.

CRAIG YOUNG reports in the SYDNEY MORNING HERALD that Sportsbet, recently bought for $200 million-plus by Irish giants Paddy Power, and Betfair were yesterday granted leave to appeal to the High Court over Racing NSW's bid to charge a 1.5 per cent turnover tax.

Tripp has always wanted the matter settled behind closed doors but believes Racing NSW chief executive Peter V'landys is not willing to negotiate. ''I believe the Racing NSW board should look at it and review the situation,'' Tripp said yesterday.

''How much more money should be wasted on legal fees before we come to a conclusion? I genuinely believe if the door was open, we could reach that conclusion fairly quickly.''

V'landys believes the matter will be heard by the High Court in June, and was not surprised by yesterday's decision. Since the race-fields legislation and its 1.5 per cent fee was introduced, Racing NSW has collected more than $120 million but hasn't distributed any to the industry due to the court cases.

As for Tripp's invitation, V'landys remained firm. ''The problem we have with that is we need certainty,'' he said. ''What this court case does is provide the racing industry with the certainty to charge the price it believes is the right one to keep the industry financially viable.

''The wagering operators want us to be a silent partner in their business, which exposes us to all the commercial decisions which may in the end not generate any revenue for us.''

The betting operators are pushing for a tax based on gross profit. ''They just shut the door here [in NSW], which is the disappointing thing,'' Tripp said. ''We have had great meetings in Victoria, South Australia and Queensland in the last six months where we have aligned ourselves with their regulators, who are all supportive of the gross profits model.''

Betfair's Andrew Twaits said: ''We're pleased with the outcome of the hearing, and looking forward to getting some finality in the High Court."

 

STORY SOURCE: SYDNEY MORNING HERALD - JOHN FAIRFAX PUBLICATIONS.