Betfair is seeking a licence to operate its second major global hub from Australia. While it can already take bets from Australia under the terms of the IGA (2001), it is committed to operating under the Australian regulatory regime, whereby it can return taxes and be subject to player protection procedures required by the local government.

The Tasmanian Government has requested that the following principles form the basis of any agreement, to which Betfair has agreed. Betfair understands that the government is undertaking a consultation process with the racing industry on the basis of these terms.

• A racing product fee based on the gross profits generated from Australian horseracing, paid irrespective of where the punter is based.
• A tax rate based on the gross profits generated on all Australasian events (before GST, for which Betfair will be responsible), paid irrespective of where the punter is based.
• In addition, Betfair would, for the next five years, guarantee that the Tasmanian racing industry’s funding would, at least, grow in line with inflation. If the payments outlined above proved insufficient for the current level of racing industry funding to grow in line with the CPI, Betfair would pay the necessary additional amount as a ‘top-up’ fee to ensure that it did.
• An up-front payment (in addition to the above).

Media Release - Betfair

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