Racing and Sports Fees and Levies

Senet can assist you to understand these fees and their calculation, provide advice regarding requests from the racing and sports bodies, and liaise with racing and sporting bodies on your behalf in relation to the required approvals and any compliance issues.

For wagering operators, these fees are an unavoidable cost of doing business in the regulated Australian betting market and an important compliance obligation. Since the fee and levy calculations are not consistent across codes or jurisdictions, it can be difficult to understand what is included in the fee calculation and how the end sum is to be reached. We can help.  

Our team works with operators to help them interpret, understand, calculate and manage these fees and levies. We can also assist with the approval application process and in responding to any queries that may arise. 

Race Field Fees 

Wagering operators are required to pay race field fees (which are a form of product fees) to principal racing authorities in relation to the use of information related to their product. These fees are generally calculated as a percentage of betting turnover, or the greater of a percentage of turnover and gross margin, or a percentage of both betting turnover and gross margin. Race field fees are set by each racing code in each state and territory across Australia. Each governing body may set thresholds which permit the non-payment of fees (or a reduced rate) and may also vary the fee depending on the kinds of bets and kind of race meeting. These fee calculation models can be complex to navigate and do change from time to time. 

Sports Levies 

Similar arrangements have also been introduced for registered sports controlling bodies that levy a fee for use of information related to events conducted under their auspices (e.g. the Australian Football League (AFL), National Rugby League (NRL) and a number of other codes which we outline here). Each sports controlling body calculates the relevant fee differently. However, the fee structure is generally one of the following:  

• a greater of calculation between a percentage of turnover and a percentage of revenue;  

• a percentage of turnover calculation;  

• a percentage of revenue calculation; or  

• a percentage of turnover and a percentage of revenue calculation.  

Each sports controlling body may also vary the fee depending on the kinds of bets and kind of sporting event or match.  Some sporting bodies are also instituting minimum fees which act as a floor for the payment of fees. These fees range from a couple of hundred dollars to several of thousand dollars. 

It is important to ensure that betting and financial systems operate in a manner that calculates the fees and levies accurately to avoid exposure to interest on late payments.