Greater certainty for Queensland country racing

Published Monday, 06 June, 2022 at 09:26 AM

JOINT STATEMENT

Treasurer and Minister for Trade and Investment
The Honourable Cameron Dick

Minister for Education, Minister for Industrial Relations and Minister for Racing
The Honourable Grace Grace

The Palaszczuk Government is delivering a boost to Queensland’s racing industry, especially country racing, through a new sustainable funding model.

Treasurer and Minister for Trade and Investment Cameron Dick said the changes recognise significant changes that have occurred in the racing industry and the important role country clubs play in regional communities.

“There are 125 racing clubs across Queensland,” the Treasurer said.

“For 85 of those clubs, a race meeting is the biggest or second biggest event in their community each year.

“For many of those clubs, a race meeting is a once-a-year event that is an unparalleled opportunity for people to get together.

“Our government recognises how important those gatherings are to the social fabric of Queensland, and today’s announcement will help them thrive into the future.”

Racing Minister Grace Grace said greater certainty for clubs, participants and race attendees is vital.

“Over 43,000 Queenslanders participate in the racing industry, and that’s before we count the 675,000 who attend race meetings,” Ms Grace said.

“These changes offer the industry, and the 6500 jobs it directly employs, greater certainty.

“Providing longer term funding certainty means opportunities for increased prize money, enhanced infrastructure, and better training facilities – and the more the industry grows, the more revenue it will receive.”

The changes include:

  • a new 5 per cent racing levy added to the betting tax (also known as the Point of Consumption tax)
  • broadening the betting tax to include free and bonus bets
  • increasing the proportion of betting tax revenue that goes directly to the racing industry from 35 per cent 80 per cent.

The Treasurer said the change from the current 35% share of the betting tax going back into the industry increasing to 80% also creates a single funding stream.

“At present, a lot of the funding that goes to the racing industry is in the form of short-term government funding programs,” he said.

“Now, the industry will have the certainty of knowing they will get 80 per cent of the betting tax, and if the size of the pie grows, so too will their share.

“The significant growth in online betting over the last few years has led to a very different wagering market in Queensland and we need to adapt.

“The Palaszczuk Government is levelling the playing field for all wagering operators and ensuring that organisations profiting from Queensland’s thriving racing industry are investing into its future too.”

Since 2014, Racing Queensland funding has been reliant on an agreement with Tabcorp that will now be unwound as part of the new funding model.

Minister Grace said the changes would offer more sponsorship opportunities for racing clubs across Queensland.

“While Tabcorp will still offer oncourse betting services and retain retail exclusivity, its on-course ‘sponsorship and advertising’ exclusivity will end once these changes take effect,” she said.

“This means race clubs across Queensland will have opportunities to enter into new sponsorship agreements with other wagering service providers.

“Other benefits of the agreement include a further injection of $50 million from Tabcorp to cater for future racing infrastructure needs, and a one-off payment of $100 million to Racing Queensland.”

Racing Queensland Chairman Steve Wilson AM said the State’s racing industry does an incredible job connecting communities right across the state.

“The introduction of the racing levy by the Palaszczuk Government will ensure investments in jobs, events and communities will continue to grow."

He said that over the past five years the industry has grown to generate total economic contribution to the Queensland economy of $1.9 billion in 2020-21, supporting thousands of jobs across the state, with a significant number of these jobs in regional areas.

“On an annual basis, 85 communities host a race meeting which is either the biggest or second largest event for the year.”

Tabcorp Managing Director and Chief Executive Officer Adam Rytenskild commended the Queensland Government for levelling the playing field which would ensure profits made by foreign online bookmakers make a greater contribution to the Queensland industry. 

“The Queensland Government and Racing Queensland have backed Australian-made and implemented fair reforms that put Australia and Queensland first,” Mr Rytenskild said.

“This is a big shot in the arm for the Queensland racing industry – it is also great for TABs in pubs and clubs, and great for punters right across Queensland.

“The Queensland racing industry will finally receive a fair share of funding from foreign-owned betting companies – who have grown rapidly, taking the TABs market share and therefore undercutting racing industry funding.”

ENDS

Media contacts:

  • Geoff Breusch 0417 272 875 (Treasurer)
  • Kate Talbot 0439 803 211 (Minister Grace)