The long-running battle between NSW racing authorities and wagering firms Betfair and Sportsbet over rights fees will continue in the High Court this week.
A three-day hearing to begin in Canberra on Tuesday will determine whether Racing NSW can charge a 1.5 per cent turnover fee.
In March, corporate bookmaker Sportsbet and betting exchange Betfair were granted leave to appeal a Federal Court decision they pay the fee under the NSW Race Fields legislation.
Both maintain a fairer outcome is to pay the fee based on gross profit, arguing the current model discriminates against interstate operators and is protectionist towards wagering giant Tabcorp and NSW on-course bookmakers.
Betfair says because it is a low-margin operation which matches punters against each other with the company taking a commission from winning bets, the turnover fee will affect its ability to operate.
Sportsbet is licensed by the Northern Territory government while Betfair is licensed by the Tasmanian Gaming Commission.
Racing NSW chief executive Peter V’Landys says it is important for the High Court to establish a precedent for all sports bodies, not just racing.
“It is not only important for NSW racing but has ramifications for all Australian racing and all sports,” V’Landys told Sydney’s Sky Sports Radio.
“It allow certainty to charge wagering operators to use the product.
“We are after certainty.
“What other commercial entity can’t set a price for its product.
“We are hoping the High Court sees it that way.”
Racing NSW is holding around $150 million in collected fees until the outcome of High Court hearing is known.
V’Landys said if the case was won, Racing NSW would release the money to the industry for important upgrades to infrastructure throughout the state and to improve conditions for the 50,000 participants.
AAP TURF
