NEW PRODUCT FEE MODEL FOR RACING
The Racing Victoria Limited (RVL) Board today resolved to introduce a new regime for charging interstate totalisators, bookmakers and betting exchanges for betting on Victorian thoroughbred racing for the current racing season.
Under the new policy interstate wagering operators will be charged product fees on gross revenue rather than the current method of turnover on the following basis:
* A base rate of 10% of revenue less GST (ie. gross profits - bets taken less bets paid or commission generated on a betting exchange) for races outside of the Spring Racing Carnival; and
* A premium rate of 15% of revenue less GST for races conducted in Victoria during the months of October and November each year.
This will replace RVL’s current economic contributions policy used for the approval of interstate wagering operators to publish and use Victorian thoroughbred race fields. Under the current policy, bookmakers and betting exchanges are charged up to 1 per cent and totalisators up to 3 per cent of assessable turnover. The current policy provides for a reduction in these fees payable to RVL by interstate operators in recognition of economic contributions made to their local racing industry. The new policy does not permit these offsets.
RVL will notify interstate totalisators, corporate bookmakers, on-course bookmakers and betting exchanges of the new policy which will be implemented over the coming months.
The policy will be reviewed prior to the start of the 2009/10 racing season.
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