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Bookies threaten strike action over bets levy
West Australian Racing
PerthTurfTalk
3,054 posts
WA bookmakers are threatening radical action over changes to the racing bets levy and legislation that does not allow them to take top fluctuation bets.
WA bookmakers pay the highest levy in Australia - 1.5 per cent of gross turnover, which does not include their bet backs - and the highest stand fees.
The turnover tax jumps to two per cent for November 1 to January 1 as part of changes to the levy for the use of WA race fields announced by Racing and Gaming Minister Terry Waldron on October 5.
Melbourne bookmakers pay one per cent on net turnover, which includes bet backs, up to an annual threshold of $5 million.
They do not pay stand fees.
WA Bookmakers' Association president Jason Cheetham claims the Department of Racing, Gaming and Liquor told the WABA this year that the racing bets levy would be in parity with other States.
Cheetham said at least half of the 12 on-course bookmakers fielding at prime Ascot or Belmont Park meetings have been issued notices for breaching betting control regulations by offering and accepting top fluctuation bets, mostly from interstate clients, this year.
WA is the only State where top fluctuation bets are not permitted.
"We're prepared to do whatever it takes to be heard. If that means going on strike, if that means going on course and just betting on Melbourne and Sydney during a feature race day in Perth, so be it," Cheetham said. "It seems to me the only way we're going to be heard is to take drastic action.
"We're a dying breed already and it needs to be more viable.
"At the moment it's hard for us to bet people interstate because we can't offer the same bet types."
A spokesman for Waldron said changes to the levy were a result of consultation with industry stakeholders.
story by Jay Rooney - The West
Comments
1. yes, consultation was made with the industry stakeholders. the bookies agreed 1.5% of turnover was fair. The bookies agreed that if WA came into line with the rest of Australia, that was completely acceptable. The government then went and announced the latest levies...which is nowhere near what was agreed on. Example, on Melbourne Cup Day, A victorian bookie working at Flemington on the biggest carnival in Australia, who turns over less than $5 mill in a year, will pay 1% on Net Turnover. The counter part in WA, working on......our meeting, will pay 2% on Gross Turnover (MORE THAN DOUBLE).
2. bookies have made several submissions to RGL in order to introduce such bet types as Top Fluc, Best Tote, Starting Price Guarantee. All have fallen on deaf ears. RGL expects a 50 page, lawyer prepared submission, outlining the effects of these bet types on the industry and turnover, to be paid for and compiled by bookies. These bet types are acceptable all over Australia and have been for years....all WA needs to do is fall into line. Instead of working to improve wagering in WA, RGL have audited bookies and called them in to please explain why they are betting these bet types, with a view to fining them.
3. In Victoria, bookies turning over less than $5 mill per annum, pay 1% on turnover. In NSW, they pay nothing up to $5 mill. These states are trying to protect the on course bookie for the future of racing.
4. WA bookies now pay the most turnover tax (from NOV 1) that has ever been paid in 60 years on an Australian racecourse.
Any suggestion of a way those who support the bookies position can help???..And no i'm not a bookie, for those who dont know me.
I think the decision has been made by those who "dont understand".
RGL dont understand what a "betback" is. They didnt even know what "top fluc" was until earlier this year.
I dont believe the staff at RGL explained to the minister the "ins and outs"...because they dont understand it themselves. If they need to ask the bookies to do the numbers for them....then there is a clear problem dont you think?
I did request of RGL that I be allowed to explain it to the minister....but they declined.
From what your saying the full story hasn't been passed up the line due to the public servants not undestanding the betting system here or in the rest of Australia...So to fight that is a real struggle.. If the minister alone had made a decision it could be swayed by public comment and potential public embarrasement. But when it is a public servant driven decision, my experience tells me that is very hard to get them (because "they' can never be identified and the system doesn't ensure that they are held accountable for thier actions) to change their decisions...
For that to happen you have to have a public servant admit that they are wrong and don't know what their job is, and a minister to admit that he signed off on something that he had no idea about and didn't take the time to investigate....
Good luck with the fight..it will be a tough one to get a change in a short period of time, but i am confident that wont deter you.
RWWA and RGL are the government who also own the TAB while Perth Racing (no disrespect to Steven wicks who has only just joined) were probably happy enough to go with the flow, especially if it as been touted as being "agreed upon" by the stakeholders.
So, you have the government saying we'll take 2% of gross turnover and the bookies saying "no, we agree to fall into line with the other states". The fact that bookies did not agree to what is now in place, has been minuted and documented.
Agreed to by the industry? No it has not been.
Why would WA want to be so far out of line with the other states....one begs the question.
it will hurt the punter long term.
This is nothing more than an attepmpt to have a cash grab at an opportune time.. All particpants in the industry look forwad to this time of the year to have a bit of a punt and make a few dollars..
This is like telling flower vendors that the government is going to tax flowers by an extra 33% in the week leading up to and the week after valentines day..
An absolute disgrace.......And if any horse owners out ther think this only effects the bookies income...Dont forget..No Punting = NO STAKES MONEY.... get angry people...this is an out and out money grab by a governemnt that is just looking for ways to cover for a few holes in their budget...and to hell with the long term consequences...
It puts our product so far from a level playing field with bookies across the country that if i were one, i'd continue as normal...but never offer a price on a WA race again..
"Representative WA Bookies association advised RWWA CEO that the Bookmakers had agreed to follow the national trend and would now be seeking a threshold of $5 mill in WA".
Attended by R Burt RWWA
S Wicks Perth Racing
T Van Heemst Perth Racing
L Piper Perth Racing
Robert Pearson RWWA
This meeting brought about the "apparent" agreement by industry stakeholders to the new "betting levy".
I dont see how the minutes above indicate agreement to what has been announced?
http://soundcloud.com/mattrigby/bookmakers
The influence of Perth Racing over the WA Racing Industry is embarrassing. I couldn't think of anyone in a worse position to be advising on financial matters and the direction of the sport than them.
With these people involved, the future resembles a Tim Rice movie set.
And all of us who allow them to be industry leaders need to take a portion of blame for their pathetic ineptness on the important issues....again (:|
The meetings are designed to show that RWWA considers industry input.
However in reality they are nothing more than 2 hours of trivial conversation that does nothing to change the decisions that RWWA and the government have already made.
The bookmakers fees are a classic example.
My reason for getting on the band wagon here is the potential damage to the WA product and therefore the potential to have a reduced revenue stream. Something that we just cant risk. And after speaking to several people at RGL yesterday i am seriously concerned about the theories that led to this decision. If what i heard yesterday is an indication of how our industry is seen, this could be the thin edge of the wedge by a government that is desperate to increase returns in all revenue collection avenues it has...
A WA bookie face to face, has to bet to a much bigger limit.
Most of the bookies will actually bet you much more than the limit, however they want to reserve the right to bet certain people to a smaller limit, if they see fit.
while I wouldnt do that necessarily, I completely understand why some of them want that flexibility.
Effectively, they can do whatever they want!
Now, does anyone know what % or revenue RWWA/Perth Racing or whoever it is that collects it and redistributes it among the industry, comes from on course bookies in Perth?
I would hazard a guess and say it is pretty low of the overall kick in from the TAB/corporates etc, so why bother with this little cash grab?? Seems silly to me, and a waste of a lot of peoples time. If an indirect consequence of this decision is no (or a smaller amount) on course satchel swingers then that would be a much, much higher price to pay for the industry than the lack of revenue.
I iwll probably never say this again, genuinely - good luck with hte fight, books.