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Betfair challenges NSW Turnover Fee

27 October 2008

Betfair Launches Legal Challenge of NSW Turnover Fee

Confident because of their history in overturning illegal fees, like that of the nullified fees imposed by the Western Australian Government, Betfair filed a complaint against the 1.5% turnover fee imposed by Racing NSW and Harness Racing NSW.

The turnover fee would be shouldered by betting operators who are interested to cover NSW thoroughbred and harness races and this includes Betfair. According to Betfair’s Director for Corporate and Business Affair Andrew Twaits: the turnover fee that the Racing NSW and Harness Racing NSW is way beyond their means.

“What they want is 60% of our gross revenue,” Twaits explained. “While that 1.5% is only 10% of our competitor’s revenue, and they are aware of that.”

This leaves Betfair to challenge the imposed fee on court as violation of Section 92 of the Constitution on discriminatory conduct in interstate trade and commerce.

Twaits suggested that NSW should develop a gross revenue model where all betting operator are paying the same equal rate so that we could assure that the same proportion of revenue are being shelled out by the punters.

With the presentation of this proposal, the three other betting operators who will cover the races agreed on implementing a gross revenue model.

Betfair is a legal Tasmania wagering operator permitted to collect bets from customers in Australia.

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