NRL chases $17m a year windfall

[Ryan]

NRL chases $17m a year windfall
Nick Tabakoff
The Daily Telegraph
November 17, 2010 11:00PM



Precession ... Racing NSW executives arrive at court yesterday. Picture: Phil Hillyard Source: The Daily Telegraph


THE National Rugby League could receive a $17 million a year windfall - or $1 million-plus per club - following a landmark court ruling yesterday.

Racing NSW had its right upheld in the Federal Court to charge all betting agencies and corporate bookmakers 1.5 per cent of their turnover as the price for allowing them to bet on their product.

Yesterday's decision has given the NSW racing industry an instant $120 million payday from money already collected but so far held in a trust account. It will also earn the body $50 million a year in future revenues.

But the decision will have ripple effects well beyond racing. It creates a precedent that will almost certainly bring a multi-million dollar windfall to the country's major sporting codes - including rugby league, AFL and cricket. These may now all look to put their own 1.5 per cent turnover levies on the betting agencies.


The NRL currently receives little more than $1.5 million a year from betting agencies, under a formula that is based on the profit the agencies make rather than total turnover. Industry experts say this is many millions less than what the code would make with a 1.5 per cent levy on betting turnover as has been applied in the Racing NSW case. Under a turnover levy, sports are paid the same regardless of whether betting agencies win or lose.

NRL boss David Gallop said yesterday: "We'll be reviewing the decision, and if there is an opportunity for us to be improving our return, we'll pursue it."

Gallop added it had so far been "early days for us in terms of getting any return" from betting.

Racing NSW boss Peter V'landys said of the judgment: "It is a perfect template for all the other sports to also get paid for the intellectual property."

The Daily Telegraph can reveal definitive Australian Racing Board statistics for betting on all sports other than racing will show 30 per cent growth to $3.3 billion for the 2009-10 financial year.

If this trend continues, this will grow to about $4.5 billion in the current year.

Tabcorp's sports betting statistics show the NRL is the highest-turnover sport outside of racing, with 16 per cent of the market.

But one former high-level Tabcorp official said many of these agencies take about 35 per cent of their turnover on rugby league alone. Based on a 1.5 per cent turnover levy, he estimated the NRL could recoup $17 million a year, which could be pumped back into the sport as part of a $70 million total windfall for local sport.

Other codes are also likely to gain millions of dollars from the decision. Both the AFL and Cricket Australia said they would look at the ruling to see "what, if any, implications it may have for us".

[TITAN PETE]

Great news for the code

[DIEHARD]

Great for sport and racing. For too long betting agencies have profited from our product and that of racing and done nothing for it. It is a disgrace.

This is a massive boost in funding. And hopefully it can largely go to juniors.

In the future we may see betting become a very large generator of income, so it is important that we also invest in integrity and investigative units dedicated to betting.