30/6/03
Racing Minister Nick Griffiths has described betting exchanges as a potent threat to the Australian racing industry and has called for Federal and State/Territory legislation to prevent the business from gaining a foothold in Australia.
Mr Griffiths said betting exchanges were not bookmakers but platforms facilitating bettors to lay and take bets with each other, with the exchange taking commissions from winners.
"This form of wagering creates a substantially new type of betting contingency - the capacity to bet that a particular horse will not win," he said.
"The ability to lay bets through exchanges and thereby profit from a horse losing can be seen to carry with it a real temptation for owners, trainers, jockeys, stable staff and others close to the industry, to compromise the integrity of racing.
"They have the facility to not only lay runners but also to do so anonymously, making it impossible to trace the origin of bets."
Before leaving for Sydney, where he will confer with NSW Racing Minister Grant McBride, senior executives of TAB Limited, the Australian Racing Board and major race clubs, Mr Griffiths called on all States to support such a ban.
He is to propose that all State Racing Ministers adopt a united approach to the Federal Government to outlaw betting exchanges as a matter of urgency.
Mr Griffiths said the submission should be presented as swiftly as possible to include a ban clause in the Federal Government's review this year of the Interactive Gambling Act 2001.
"In the meantime, no Government should issue any Australian-based licences for betting exchanges," he said.
"The Western Australian racing industry is alarmed at the rapid inroads made by UK-based betting exchange company, Betfair, while operating on Australian racing without a licence.
"I am aware authorities in NSW have the same concerns.
"The serious nature of the threat to racing's credibility is evidenced by the UK Jockey Club's recent decision to make it an offence for a trainer to lay a horse through a betting exchange, a ban which may be extended to include owners and stable staff.
"The Hong Kong Jockey Club has announced its view that the integrity risks associated with betting exchanges are ineradicable."
Mr Griffiths said betting exchanges contributed nothing to the Australian racing industry and even if a financial return could be negotiated, the likely result would be a fall in industry revenues.
"Betting exchange turnovers would largely consist of transfers from existing wagering operators, TAB agencies and the bookmaking profession, which are among the best-managed and most effectively regulated in the world," he said.
"Their revenue contributions has resulted in a world-class racing industry which provides employment and recreation for a large cross-section of the Australian community and the industry must be protected," the Minister said.
Minister's office: 9222 8950
