NSW turnover fees, discriminatory?

Posted 9 December 2008 in Latest News

Betfair Launches Legal Challenge of NSW Turnover Fee

Betfair, a licensed wage collector in Tasmania, Australia, accused the 1.5% turnover fee imposed by Racing NSW and Harness Racing NSW on all betting operators who likes to cover the NSW thoroughbred and harness races as discriminatory.

Betfair Director for Corporate and Business Affair Andrew Twaits stated that they are willing to pay a reasonable wagering fee to the NSW racing company but they are asking for too much, and they know that.

He explained that basing on their low gross revenue, that 1.5% would already equate to a whooping 60% of their gross revenue. This is something big for them compared to the meager 10% that big betting firms like TAB are willing to pay.

“It seems like NSW is forcing us to deal with this in court,” Twaits said.

Pursuant to Section 92 of the Constitution which deals with discriminatory conduct in interstate trade and commerce, Betfair filed a lawsuit against NSW and freezes every payment made to them until the proceedings are over.

This is not the first time that Betfair challenged a unjust fee, early this year they have also challenged the Western Australian government and won the dispute.

For Betfair, it would be fair if NSW will consider charging them turnover fees based on a gross revenue model so that every operator pays the same rate, with the same effect on their businesses.

All three operators vying to cover the race agreed to the proposal.