Sportsbet, Betfair told to pay Racing NSW race fee
Unanimous ruling says Racing NSW is entitled to charge operators 1.5% turnover tax to use its track info - NSW could collect 50m in annual rights fees from private operators.
Racing New South Wales (NSW) will be able to charge private operators a rights fee to use its race field information, an Australian High Court has ruled.
In a long running case between Racing NSW, Betfair and Sportsbet, now owned by Paddy Power, the two private bookmakers will have to pay 1.5% of their respective turnovers to the racing administrator under the state government’s race-fields legislation. Both operators had argued the fees breached free trade provisions under the Australian Constitution.
Racing NSW chief executive Peter V’landys called the decision “not a victory for Racing NSW, but a victory for the industry’s 50,000 participants”.
It is estimated Racing NSW could collect as much as $40 to 50m in annual rights fees from private operators, according to V’landys.
Speaking outside court, Sportsbet’s marketing director Barni Evans said he was “disappointed” by the court’s verdict, but added that he “respected” the court’s its authority and that Sportsbet would now focus on “protecting our customers from any negative impact from this decision.”