The long-running battle between NSW racing authorities and wagering firms Betfair and Sportsbet over rights fees will continue in the High Court later this year.
Corporate bookmaker Sportsbet and betting exchange Betfair were granted leave on Friday to appeal a Federal Court decision they pay 1.5 per cent of turnover 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.
Sportsbet’s chief executive Matthew Tripp said it was unfortunate mediation could not have resolved the situation.
“So far they have shut the door and it’s disappointing given the discussions we’ve had over the last six months with Victoria, South Australia and Queensland,” Tripp said.
“We have aligned ourselves with regulatory bodies who fully support a gross profit model.
“How much more money has to be wasted before we get to a conclusion.”
Racing NSW chief executive Peter V’Landys said it was now important the case did go to the High Court to establish a precedent for all sports bodies.
He said the decision to grant leave for Betfair and Sportsbet to appeal was not unexpected given that the case involved the interpretation of the Constitution, traditionally the domain of the High Court.
“The High Court likes to be the final arbiter on the Constitution – mention of the word Constitution we were behind the eight-ball right away,” he said.
“I think the matter probably is important enough to go to the High Court.
“We need to go to the High Court to get the precedent, to get the certainty to charge the price we want, it’s important for every sport around the world to finally determine we have the right to charge for our product.”
V’Landys said it was important to note Sportsbet was only permitted to appeal seven of the 16 bases it sought.
“Racing NSW is confident that the High Court, when presented with all of the facts, will vindicate the position of Racing NSW, as did the Full Court of the Federal Court in November last year,” he said.
Racing NSW is currently holding around $120 million in fees collected pending the outcome of the appeal.
If the regulatory body wins its case the money will be distributed to race clubs and participants throughout the state.
The appeal will be held in Canberra, most likely in June.
AAP TURF
