Skip to main content

Aus states now competing to license bookmakers

In Australia, the three main zones for corporate bookmakers are the Northern Territory (home of Centrebet, Sportsbet, Sportingbet, IASBet and numerous others), Tasmania (home of Betfair Aus) and the ACT (home of Sportsalive). When I say home, it's at least where their servers are based and a handful of staff - most have marketing and other departments based in Melbourne or Sydney. These three regions, two territories and Australia's smallest state, have little industry to speak of and need businesses in their region for employment, taxes etc. And they also have no deep-seated allegiance to TABs like the bigger states such as Victoria and New South Wales.

Internet bookmakers in NT welcome tax change

Tasmania recently threw the cat amongst the pigeons by scrapping the local tax on corporate bookmakers and adopting a $250k annual flat fee, a very attractive prospect for major firms turning over hundreds of millions per year. This was brought on by Betfair's five-year licence being up for renewal in early 2011, and the prospect of Victoria offering a carrot to move the exchange to the mainland. Thus Tasmania wanted to keep creating jobs for locals rather than seeing them disappear. Not to be outdone, the Northern Territory has now matched the Tasmanian offer, adopting a Gross Profits tax of 10%, capped at $250k. For the likes of Centrebet and Sportsbet, this is believed to save them up to $1m per year. The ACT is unlikely to follow suit as they would need to relax several other rules, such as the restriction of bookmakers offering tote odds.

Part of this radical change is to accommodate for the additional fees that bookmakers will be levied for from sports authorities, particularly horse racing, for the right to field on their events. After the recent movement of major UK bookies to Gibraltar again, perhaps we could see some more UK/European firms setting up in Australia to take advantage of these offers while the Aus industry is in state of rapid transition.

Comments

Popular posts from this blog

lay the field - my favourite racing strategy

Dabbling with laying the field in-running at various prices today, not just one price, but several in the same race. Got several matched in the previous race at Brighton, then this race came along at Nottingham. Such a long straight at Nottingham makes punters often over-react and think the finish line is closer than it actually is. As you can see by the number of bets matched, there was plenty of volatility in this in-play market. It's rare you'll get a complete wipe-out with one horse getting matched at all levels, but it can happen, so don't give yourself too much risk...

Henry VIII Novices’ Chase

It's not just about the Tingle Creek tomorrow at Sandown, there's a Grade 1 Novice Chase amongst the rather decent supporting card. Lining up for the preview is astute NH enthusiast Sam Tribe, @samtribe87.

---------------------

Racing Post Henry VIII Novices’ Chase
Grade 1 Chase, 2 Miles
Sandown 13:50
Likely going Soft, Good to Soft in places


With doubts concerning the fitness of last year’s Queen Mother Chase winner Sire De Grugy and of the two mile chase king Sprinter Sacre (despite bullish remarks from Henderson) there is a chance for another to step into the limelight. Both have won the feature race of the day, The Tingle Creek Chase and that will more than likely throw a few into the hat. However, I have chosen to take a look at the Henry VIII chase, which was changed to a grade 1 in 2011 and has been won by some nice prospects in the past (Somersby and Al Ferof to name but a few). Let’s hope that a potential Champion Chase contender of the future will feature in this …

Racing has a Ponzi scheme - and the fallout will be enormous

When the term 'Ponzi scheme' is mentioned these days, the names Bernard Madoff and Allen Stanford instantly spring to mind. The pair of them ran multi-billion dollar frauds (US$60bn and $8bn respectively) that destroyed the lives of thousands of investors who had put their life savings into a 'wonderful' investment strategy. How so many people were sucked into the scheme is baffling to those on the outside. The lifestyle, the sales pitch, the success stories of the early investors - I suppose it all adds up.

So where does this link to racing you ask? A prominent Australian 'racing identity' this week has been reported to have lost access to a bank account with punters' club funds of $194m in it. Firstly - is there a worse term for anyone to be labelled with that 'racing identity'? It ALWAYS ends up meaning shonky crook! Secondly - who the hell has a punters' club with an active bankroll in the tens of millions? It simply can't be done.

The…