The following is a letter from Racing Victoria's Chief Executive Officer Rob Hines, explaining the facts regarding industry funding and revenue from the Tabcorp Joint Venture and through product fees from wagering operators.
Dear Industry Participant
You will be aware of the debate regarding the future funding of our industry in light of the increased competition to the TAB from Corporate bookmakers and betting exchanges.
Given the recent media comment on this topic in Melbourne and Sydney the following facts are worth noting:
The net income that Victorian Thoroughbred Racing received from the TABCorp Joint Venture and through product fees from wagering operators in 2007/08 was $215m.
In the current 2008/09 year we are on target to receive a net total of $234m from the TABCorp Joint Venture and wagering operators – an increase of $19m or nearly 9% on the previous year.
This revenue increase in conjunction with cost reductions at RVL enabled us to increase minimum prize money in Victoria in February 2009, the only State in Australia to do so this year.
In 2009/10 we expect net income of $248m from the TABCorp Joint Venture and wagering operators – an increase of $14m or nearly 6% on the previous year. Given these uncertain economic times this will be a more than satisfactory outcome and will enable us to maintain minimum prize money at the current levels despite all the speculation otherwise. We should also note that TABCorp, some Corporate bookmakers and betting exchanges are making a further contribution through direct sponsorship of clubs and events which also assists in supporting prize money levels.
RVL will continue to strive to maximise the income to the racing industry while making every effort to reduce the costs of the administration of racing in both Country and Metropolitan Victoria.
Yours sincerely
ROB HINES
Chief Executive Officer