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Totalizator Legislation Amendment
Bill 1995
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
The Bill also allows for adjustments in the apportionment of totalizator
commissions by providing that the commissions to be paid to the State, other
racing clubs and the TAB, or to be retained by the club conducting the
totalizator, are to be determined by the Governor by order published in the
Gazette on the recommendation of the Treasurer.
Clause 2 provides that the proposed Act will commence on a day or days
to be proclaimed.
Clause 3 gives effect to the Schedule of amendments to the Totalizator
Act 1916.
Clause 4 gives effect to the Schedule of amendments to the Totalizator
(Of-course Betting) Act 1964.
Clause 5 makes a consequential amendment to the Soccer Football Pools
Act 1975.
Clause 6 repeals the Totalizator Legislation (Amendment) Act 1994.
Accordingly, the amendments contained in Part 2 of Schedule 1, and Part 2
of Schedule 2, to that Act (which were to commence on 1 January 1996) are
repealed. Those amendments related to the second stage of an increase in the
commission retained by metropolitan racing clubs, and also would have
removed the distinction between metropolitan and country racing clubs.
Those amendments have now been superseded by the amendments contained
in the proposed Act.
Schedule 1
Amendment of Totalizator Act 1916
Schedule 1 (3) substitutes Division 1 of Part 3 of the Totalizator Act 1916.
The new Division 1 follows the current scheme to the extent that racing
clubs will still be required to distribute the balance of investments paid into
on-course totalizators by paying dividends to investors and by distributing a
percentage as commission (this is partly paid to the State or other clubs and
the TAB, and partly retained by the club). The maximum percentage will be
fixed by the Act (see proposed section 8 (2)) and will depend on the type of
totalizator (eg for a doubles totalizator, 17% of the money invested in the
race is distributed by the racing club as commission). However, when such
action is warranted (eg to enhance the competitiveness of the NSW racing
industry and to make dividends more attractive to investors), the percentage
that must be distributed as commission can be reduced by an order of the
Governor.
Explanatory note page 2
Proposed section 8 also provides that the proportions in which the
commission is to be distributed between the State, the TAB and racing clubs
is to be determined by the Governor by order. The Division also restates the
existing requirement that a set percentage of the commission payable to the
State is to be separately credited to the Consolidated Fund and that payments
are to be made, out of that Fund, into the Racecourse Development Fund and
the Racing Assistance Fund (see proposed sections 8B and 8C).
The distinction in the Act between metropolitan and country racecourse
totalizators is removed by the repeal of Division 2 of Part 3 of the Act (see
Schedule 1 (4)). The remainder of Schedule 1 contains amendments that are
consequential on combining Divisions 1 and 2 into a new Division.
Schedule 2
Amendment of Totalizator (Off-course
Betting) Act 1964
Schedule 2 ( l ) makes similar amendments (with respect to off-course
totalizator betting conducted by the TAB) to the amendments made by
Schedule 1 in relation to on-course totalizator betting. A similar scheme will
apply to the commission payable on totalizators conducted by the TAB in
accordance with section 12 (3) of the Act (namely, betting on racing events
where the TAB is not acting as agent for a racing club). The amendments
provide that an order by the Governor will determine the manner in which
the TAB is required to distribute commission in respect of any totalizator
conducted by it. Existing provisions requiring money to be paid into the 2
racing funds mentioned above are continued.
The amendments provide that the distribution of the money invested in a
totalizator conducted by the TAB in respect of an event other than a race
meeting (eg football games) is also to be determined by an order of the
Governor (see proposed section 13B). The percentage paid as dividends or
prize money to, for example, FootyTAB investors, can also be increased by
order of the Governor.
The Act currently requires a set proportion of the commission payable in
respect of totalizator betting conducted in respect of events other than race
meetings to be paid into the Sport and Recreation Fund. This requirement is
continued, as is the requirement for money from race meeting totalizator
betting to be paid into the 2 racing funds mentioned above.
The remainder of Schedule 2 contains consequential amendments.
Explanatory note page 3