Bookies to make a stand

ON-COURSE bookmakers are set for a showdown with race clubs across the state, with the sweetheart incentive deal from Racing Queensland being rolled back.

Under The Louvre (right) gains the upper hand over Black Heart Bart in Queensland’s premier race, the Stradbroke Handicap. Picture: Jono Searle

ON-COURSE bookmakers are set for a showdown with race clubs across the state, with the sweetheart incentive deal from Racing Queensland being rolled back.

The Oncourse Fielding Incentive Scheme was brought in to help oncourse bookmakers survive because they are deemed an integral part of hosting a race meeting, particularly in country areas.

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But with an annual cost of nearly $1 million, as outlined in last year’s Tracking To Sustainability Report, RQ head of operations Declan Martschinke said the industry could not justify ongoing funding.

Oncourse bookmakers will now pay 1.5 per cent of turnover on Queensland racing (they already pay Race Information fees for bets wagered on other states), with a 0.5 per cent rebate available.

Individual race clubs will receive the taxes accrued at their tracks but RQ will no longer rebate clubs for ‘‘stand fees’’, meaning that portion of the deal is up for negotiation between clubs and bookmakers.

The Queensland Bookmakers Association is adamant clubs should not charge, with leading rails bookmaker Lindsay Gallagher suggesting the new structure “incentivises” clubs to have more patrons that generate greater turnover.

“Why would you pay a fielding fee?” he said. “They will lose half the bookies. What they think they will get back they will lose because there will be no one left to charge.”

The Brisbane Racing Club and Gold Coast Turf Club have indicated the change to the scheme leaves significant holes in their annual budgets.

“Based on turnover figures from last year we will be close to $100,000 out of pocket,” GCTC chairman Brett Cook said. “We just can’t afford to let that revenue go. We will have discussions with oncourse bookmakers on how we might restructure in a way that is acceptable to both parties.”

Dave Whimpey has recommended that bookies be hit with a stand fee. Picture: Patria Jannides

BRC chief executive Dave Whimpey said a recommendation has been made to his board that bookmakers be now charged a stand fee.

Other clubs across the state are also considering whether they charge bookmakers in an attempt to cover for the loss of the RQ rebate.

Bookmaker Wayne Gannon fears the subsidy withdrawal has the potential to hasten the demise of his country colleagues. “There’s just not enough money on course at most of these meetings to justify paying a stand fee, on top of turnover tax and wages for staff,” he said.

In a letter to constituents, QBA president Peter Laird said “it is hoped race clubs fully embrace the new initiatives and betting turnover may in turn increase through a surge in patronage, which is the overall intent of the changes to the scheme”.

Originally published as Bookies to make a stand