Online Casinos Debate Their Role in Funding Australian Racing
Australian lawmakers are looking to consolidate provincial approaches to subsidizing the racing industry, and revenue from online casinos seems to be a popular target. But operators of Internet gambling sites are saying their contributions are too high, and other, more long-term solutions need to be discussed.''We pay the industry more than our entire company makes in a year,'says Elmer Funke Kupper, managing director of Tabcorp."We continue to give the racing industry record amounts of money every year."
Kupper notes that a current wave of prosperity will eventually end, placing online casinos in economic jeopardy if the horse racing conundrum isn't solved before then. Tabcorp paid $600 million in taxes to racing subsidies, while the company's net profit was less than $500 million.
Fees demanded by the government in New South Wales have other online gaming owners outraged. Both Betfair and Sportsbet say the NSW model cannot be used for national policy, insisting that a percentage of revenue around 10 percent is fair.
Andrew Twaits, CEO of Betfair, says taxing viable gaming operations doesn't solve the problem of racing's fading popularity, the cause behind the need for financial support. He says racing is on the edge of becoming a "niche gambling product."
''I think that unless racing focuses on trying to reclaim its mainstream status in society, then that's a very real risk," stated Twaits.
