Victorian punters carrying the cost of tax increases to bookmakers

Bookmakers in Victoria are passing tax increases on to punters while still spending large sums on advertising and incentives.

Jockey Anthony Darmanin rides Mystic Journey to win the inaugural All Star Mile at Flemington in March. Picture: AAP

Victorian punters are being charged more to bet on thoroughbred racing by bookmakers passing on tax increases imposed by the state government since the start of the year.

Racing Victoria chief executive Giles Thompson said the big, mostly foreign-owned bookmakers were still spending large sums on advertising and incentives, which had driven impressive growth in wagering turnover, but there had been a “deterioration in the price the punters are getting”.

Bookies has previously warned new taxes would eat into the majority of their profits, but the Racing Victoria boss said the wagering operators were offering slightly worse odds than previously while maintaining their advertising spend.

The Victorian government in January introduced an 8 per cent point of consumption tax. NSW has a 10 per cent rate and in other states and territories the rate is up to 15 per cent on bets made by punters in their markets

Speaking at the release of ­financial results yesterday for the six months to December and the recently completed Festival of Racing, Thompson said competition between Tabcorp and the corporate bookmakers meant betting figures were increasing rapidly.

Racing Victoria said wagering turnover in the year to April 28 had increased 10.2 per cent from the previous 12 months to more than $5.2 billion. Betting on metropolitan meetings was up 13.7 per cent and country racing was up 5.7 per cent.

Thompson said there had been an expectation that the corporate bookmakers, who are among some of the biggest advertising spenders in the country, would cut back on their promotions when the point of consumption tax was introduced on January 1.

Instead, the foreign-owned entities still saw Australia as a growth market and were likely to keep spending in an effort to gain as much market share as possible through to the end of the year.

“Tabcorp (is) really going hard and the big corporates are still being authorised by their bosses (overseas) to keep investing in Australia for now. I would predict that would continue but whether it keeps going into 2020, that is the unknown.”

Victoria had six race meets with total domestic betting turnover of more than $100 million for the first time in the Spring Carnival. The Caulfield Guineas, Cox Plate and Stakes Day joined traditional big-wagering days in Derby Day, Melbourne Cup and the Caulfield Cup.

Wagering for the first six months of the 2019 financial year rose 9.8 per cent. There was a 3 per cent fall on Parimutuel betting.

Television ratings on the Seven Network rose by 11.4 per cent compared to 2017 and there was a cumulative audience of more than four million. Network Ten this year will broadcast the Melbourne Cup carnival. Seven will show the rest of the Spring Carnival.

Thompson said Racing Victoria was also satisfied with interest in the inaugural $5 million All Star Mile in late March.

Racing Victoria said 70 per cent of the 140,000 voters on the field for the All Star Mile were new to Victorian racing and attendance for the festival was almost 160,000 up 10.9 per cent on last year.

Meanwhile, Maddison Avenue will have her first try beyond 1600m when she strives to extend her winning sequence to three at Caulfield. Maddison Avenue snuck under the radar of some punters when successful at Sandown on April 10, before returning to Sydney to win at Randwick on April 25 when well supported.

She returns to Melbourne tomorrow to contest the JRA Handicap in which she will be partnered by 2kg claiming apprentice Michael Poy.

ADDITONAL REPORTING: AAP