Australian lawmakers wish to consolidate provincial approaches to subsidizing the racing industry, and revenue from online casinos appears to be a well-liked target. But operators of Internet gambling sites are saying their contributions are too high, and other, more long-term solutions must be discussed.''We pay the industry greater than our entire company makes in a year,'says Elmer Funke Kupper, managing director of Tabcorp."We continue to offer the racing industry record amounts of cash every year."
Kupper notes that a current wave of prosperity will eventually end, placing online casinos in economic jeopardy if the pony racing conundrum isn't solved before then. Tabcorp paid $600 million in taxes to racing subsidies, while the company's net profit was not up to $500 million.
Fees demanded by the federal government in New South Wales produce other online gaming owners outraged. Both Betfair and Sportsbet say the NSW model can't be used for national policy, insisting that a percentage of revenue around 10 percent is fair.
Andrew Twaits, CEO of Betfair, says taxing viable gaming operations doesn't solve the issue of racing's fading popularity, the cause behind the will for financial support. He says racing is at the fringe of becoming a distinct segment" gambling product."
''I think that unless racing makes a speciality of looking to reclaim its mainstream status in society, then that's an excessively real risk," stated Twaits.
Published on April 12, 2010 by PrestonLewis
Read More... [Source: Horse Racing News]
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