Betfair are taking Racing New South Wales to court today after being hit with a 1.5% levy on their turnover.They are claiming that this 1.5% levy actually makes up 60% of their gross revenue, whilst Tabcorp, their local rival and TAB operator, are only paying 9.75% of their gross revenue, (because they have thicker margins of 16% of the dollar in the betting pool). So, whilst corporate enterprises like Betfair are providing a better service to the public, only charging them 1-3% of the dollar, they are being stung by Racing New South Wales.
Simultaneously, Sportsbet is making an attack on the legitimacy of the constitutionality of the legislation through which the levy was introduced.
Andrew Twaits, Betfair’s Head of Operations in Australia, will give evidence to the court alleging that the NSW racing authority is favouring Tabcorp over other companies. He will complain that the imposition of the levy favours Tabcorp and is an attempt to drive them out of business in NSW and is thus anti-competitive and discriminatory.
Obviously, Peter V’Landys, Racing NSW’s CEO is denying any form of favouritism and claiming that a balanced consultation process was employed.
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This entry was written by Nena on Wednesday, November 25th, 2009 at 10:37 pm and is filed under News.
