Tatts extends wagering monopoly in Queensland with new deal

Tatts said it has reached an accord with the Australian state of Queensland that extends both its sports and race wagering licenses until 2098 and secures its retail monopoly until 2044. The group will pay $150 million in four instalments as a license fee.

Under the accord, the tax rate on pari mutuel betting will decline from 20 percent of commissions to 14 percent, while that applicable to fixed-price betting will drop from 20 percent to 10 percent of gross revenue.

“Our wagering franchise is now well positioned to fight back against the predatory operators who have for too long exploited the fiscal imbalance that has existed in the Australian wagering landscape,” said managing director and CEO Robbie Cooke.

The company said the prior system had allowed out-of-state operators to take advantage of better fiscal regimes elsewhere to target Queensland customers and siphon revenue out of the state.

As part of the accord, both the state and the company have agreed to end ongoing litigation related to the treatment of racefield fees.

Tatts will also pay a $15 million inflation-linked product fee to the racing industry, together with a 2.5 percent share of commissions generated from bricks and mortar outlets.

 

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