Wide-ranging reforms to betting legislation

29/12/94

Bookmakers will be able to extend their operations to professional sporting events other than horse-racing under wide-ranging reforms to betting legislation in Western Australia.

Racing and Gaming Minister Max Evans said today that State Cabinet had agreed to the changes, which would be introduced into Parliament early next year.

Mr Evans said the Betting Control Act would be amended to allow bookmakers to field at professional sporting events.

"The changes will also remove the restriction on bookmakers operating at race tracks only when race meetings are being held, which will allow them to field bets on interstate meetings.

"However, this will be subject to approval from the Betting Control Board and the race clubs concerned.

"Furthermore, all of the tax collected on bets laid at sporting events will be collected by the Betting Control Board and distributed directly to the Minister for Sport and Recreation for sport development programs."

The Minister said the Government's reforms were primarily aimed at allowing the TAB to operate as a commercial entity and to consolidate the regulation of betting under the one legislation - the Betting Control Act.

"These legislative changes put in place the Coalition's policies regarding racing which have been implemented through rebates since February 1993," he said.

Mr Evans said that principal among the changes would be:

·       fixing the distribution of profit on horse-racing at the 65:35 ratio between thoroughbred and harness racing;

·       reducing from six per cent to five per cent the TAB turnover tax, thereby increasing TAB turnover profit to the racing codes; and -

·       abolishing the on-course totalisator duty.

"The TAB turnover has increased from $460 million in the 1991-92 financial year to $584.7 million in the 1993-94 financial year, which was a rise of about 27 per cent," Mr Evans said.

"Of the TAB's one per cent rebate, the three codes received in total nearly $6 million last financial year.

"Under these new proposals the codes can expect to receive at least the same amount of money and as the TAB's profit continues to rise, they will get more.

"The TAB has budgeted for an increase this year of nine per cent."

Mr Evans said that the racing industry would receive a further boost with the abolition of the on-course betting tax, which last year netted more than $4.5 million.

"This change will mean that instead of paying this money over to the Government, courses will be able to keep this money for future development," he said.

The Minister said that further changes would see the existing nine-member TAB Board abolished and replaced with a seven-member board, appointed by the Minister.

"Board members will be appointed who have commercial and racing expertise," he said.

"The new board will be required to prepare a statement of corporate intent which will set out its operating principles, such as the development of a business plan, policies on the establishment of TAB agencies and the parameters of minimum bets."

Mr Evans said all regulatory requirements of the TAB Betting Act would be transferred to the Betting Control Act.

"The Betting Control Board will be become responsible for the regulation of all forms of racing betting, both on-course and off-course," he said.

"Membership of the Betting Control Board will be expanded to include a representative of the TAB."

Media contact:  Paul Plowman 222 9595