Tabcorp has ended its three-year legal dispute with Racing Queensland as the operator reached a conditional settlement and it will have to pay AU$150 million ($108.3 million) after the new reforms that were announced by the government of Queensland, Australia. This development comes just days after the company announced several changes in its senior development team.
Tabcorp Saluted the Tax Reform in Queensland
The dispute between Racing Queensland and Tabcorp was over fees after a consumption tax point was introduced in 2018. Now, Queensland introduced several changes to the tax rules and they were saluted by Tabcorp. The company stated that these rules are actually a “much needed” tax reform, one that is also fair.
Queensland’s government stated that thanks to the changes, Queensland’s racing industry will receive a decent boost via a new funding model. Cameron Dick, treasurer and minister for trade and investment, commented on the new tax model and said that it recognizes significant changes that have occurred within the racing industry.
He added that there are Queensland is home to around 125 racing clubs and for many of these clubs, a race meeting is an “opportunity for people to get together.” Dick concluded by saying that the government now recognizes this and with these changes, clubs will be able to “thrive into the future.”
Grace Grace, the racing minister, stated that more than 43,000 residents are a part of the racing industry and that number does not include the 675,000 that attend the races. Grace went on to say that the changes offer the industry and the 6,500 people that work in it, greater certainty.
Tabcorp’s Exclusivity Will End With the Reforms
Minister Grace also commented on how the new changes will affect Tabcorp. She stated that the company’s advertising and sponsorship exclusivity on-course will end. Thanks to that fact, race clubs in Queensland will be presented with new opportunities in terms of sponsorships.
Tabcorp will still be able to retain its retail exclusivity and offer in-person betting services, Grace noted. Adam Rytenskild, Tabcorp’s CEO and director saluted the new changes and stated that they “put Australia and Queensland first.”
In terms of the changes, they include a 5% levy that will be added to the betting tax of Queensland. Additionally, instead of 35% of the betting tax revenue that the racing industry gets, the percentage will be increased to 80%.
Steve Wilson AM, the chairman of Racing Queensland, said that the racing industry experienced massive growth in the past couple of years and in 2020-2021, its total economic contribution to the state was $1.9 billion.
Read the original article Here