Thoroughbred, Greyhound & Harness Racing

The racing industry is part of the cultural fabric of Australia and is a significant employer and contributor to the Australian economy. The relationship between racing and wagering is symbiotic, with key matters including, race field fees, consumption taxes (POCT), vision arrangements, sponsorships, consumer protection and responsible gambling considerations. Current points of tension also include federal calls for bans on advertising and racing industry funding sustainability.

Strategic legal advisors to the Australian racing industry

Senet are respected gambling law and regulatory advisors in Australia advising Principal Racing Authorities, Corporate Bookmakers, On-Course Bookmakers and Bookmaker Associations in relation to a wide range of legal, regulatory and compliance issues.

We frequently advise on:

• Race field fee and integrity models

• Vision arrangements

• Media rights

• International rights

• Point of consumption tax issues

• Contract negotiations and drafting

• The National Consumer Protection Framework

• Gambling advertising laws

• Marketing guides

• Responsible gambling

• Privacy policies

• Terms and conditions

• Sponsorship and other agreements

• Investigations

Race field fees

Retail Wagering Operators, Corporate Bookmakers and On-course Bookmakers 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. Race field fees are set by each racing code in each state and territory across Australia.

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).

Australia’s Point of Consumption Tax on Wagering

Since July 2017, a point of consumption taxation approach to wagering has largely replaced the previous “point of supply” taxation model. POCT is applied as a percentage of the net wagering revenue derived from all wagering and betting activity by customers in the relevant jurisdiction, as opposed to the state or territory where the bookmaker is licensed, which was previously the case.

POCT rates have broadly increased since introduction. The current POCT rates in Australia are 15% in Victoria, New South Wales, South Australia, Western Australia, Tasmania, 20% in Queensland and 25% in the Australian Capital Territory. There is currently no POCT in the Northern Territory, although other forms of taxes and a newly introduced racing and wagering levy apply in the Northern Territory.

There are some nuances in the method of calculation of the POCT between jurisdictions which operators must take care to comply with.

Gambling compliance training

Through Senet Compliance Academy, we offer comprehensive gambling compliance training, ensuring your staff remain compliant with Australia’s legal and regulatory standards. Our courses are designed to help businesses cultivate a compliance culture, protect against financial crime and reduce gambling-related harm.