Australian gaming company Tatts Group has entered into a new long-term agreement with the Queensland Government and Racing Queensland (RQ) to establish a new framework for the conduct of race and sports wagering in the Australian state of Queensland.
The new agreement, which remains subject to legislative amendments, will see the terms of Tatts’ sports wagering licence extended by 61 years and brought into line with the company’s race wagering licence. Both state licences will now run until June 30, 2098.
In addition, retail exclusivity has also been secured for a further 30 years, until June 30, 2044, under each licence.
Robbie Cooke, managing director and chief executive officer of Tatts Group, said: “We believe the new model builds a true partnership approach between RQ, the Government and Tatts to drive a prosperous future for racing in Queensland through a sustainable model that recognises the needs of all participants.
“Our wagering franchise is now well positioned to fight back against the predatory operators who have for too long exploited the fiscal imbalance that has existed in the Australian wagering landscape.”
In an attempt to help keep more gambling revenue in Queensland, the framework will reduce the tax rate on pari-mutuel betting from 20% to 14% of commissions, while the rate applicable to fixed-price betting will drop from 20% to just 10% of gross revenue.
In addition, existing product fee arrangements with the racing industry will be maintained with the continuation of the current variable product fee at 39% of gross wagering revenue.
Tatts’ right to directly offset race field fees from the product fee payable will also continue, except for when the offset exceeds RQ’s race field fee receipts from other operators, in which case the shortfall will be split 60% by Tatts and 40% by RQ.
A new AUS$15 million (€10.3 million/$14.1 million) annual product fee will be paid to the industry, in addition to a 2.5% share of fixed-price sports betting revenue generated from land-based retail outlets.
Tatts will also pay Queensland $150 million as a licence fee in four equal instalments over several years.
In addition, RQ and Tatts will form joint ventures on a range of initiatives to help generate additional revenue for the racing industry.
RQ and Tatts have also agreed to end the current litigation with respect to the treatment of race field fees on the basis that each party release each other from all claims and meet their own costs.
source : www.igamingbusiness.com
