Northern Territory Second Reading Speeches

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RACING AND BETTING AMENDMENT BILL 1998

Bill presented and read a first time.

Mr ADAMSON (Racing and Gaming): Madam Speaker, I move that the bill be now read a second time.

The purpose of this bill is to amend the section of the Racing and Betting Act that limits the duration of a sports bookmaking licence to one year. The proposed amendment will enable the Northern Territory Racing Commission to issue a sports bookmaking licence for a period of years as it thinks fit under the circumstances.

Honourable members will be aware that the Territory pioneered sports betting in Australia. Territory sports bookmakers have developed a national and an international profile. Sports betting is now so popular that other jurisdictions have followed the Territory's lead. Their imitation acknowledges that we were, in fact, a success and it is a compliment to both the hard work of Territory operators and indeed the vision of the Northern Territory government. Honourable members will also be aware of how the sports betting market is growing. The recent Soccer World Cup has shown the global potential of sports betting.

However, the Territory's present system of licensing is as it was when sports bookmaking actually began. All permits and licences issued under the act, including sports bookmaking licences, expire on 30 June and must be renewed annually. That causes a number of difficulties for the sport betting industry. Sports bookmaking licences govern the conduct of business worth millions of dollars, yet only give security of business tenure for one year. Enabling a licence to issue for a period of years will provide greater commercial certainty to shareholders and other investors, and give a better foundation for future planning. For example, it will give a more commercially secure base where a business is looking to raise capital to expand or to improve its technical and computer infrastructure.

In recognition of the changes that have taken place in the sports betting area, and the need to position the industry competitively for the future, the government puts forward this simple but facilitative change to the licensing system. The amendments will allow the racing commission to grant a sports betting licence for a period of years as it thinks fit in any particular case. Such a discretion recognises the different circumstances of the licensees and balances commercial flexibility with appropriate regulatory control.

For the benefit of honourable members, I will also mention some other reforms that are to be made to the regulation of sports betting. A change is to be made to the declaration of sports events issued by the racing commission, which lists the events on which a sports bookmaker may accept bets. All sports bookmakers hold or have applied for bookmakers' permits enabling them to field on horse-racing. An amendment will be made to the declaration of sporting events to include horse, harness and greyhound racing. This will enable betting on these events to be conducted by the sports bookmaker under its sports bookmaking licence and under its corporate structure rather than as an individual under a bookmaker's permit. This rationalises current practice and provides a firmer commercial base for these operations.

To ensure parity between bookmakers and sports bookmakers when fielding on racing events, amendments will be made to the sports bookmakers licence conditions. These amendments will apply the same controls that are imposed on bookmakers, such as the minimum bet that may be accepted by a bookmaker by telephone. I point out that no changes are to be made to the regulation of pure bookmaking operations such as those carried out by bookmakers fielding at a race meeting. Another change will be to the fee for a sports bookmaking licence. The fee will rise from $2500 per year to $5000 per year. Some increase in the fee is warranted in recognition of the value of this licence. A benefit of the amendment will be provided by enabling all of a licensee's betting operations to be conducted under a single licence and under a corporate structure. Honourable members may feel that, in view of the growth of the industry, a higher fee may be appropriate. The level of the fee is always contentious, but it is felt that $5000 a year for the new licence is appropriate at this time. The new fee will be prescribed by amendments to the regulations made under the act.

In summary, the changes I have outlined will provide a better basis for sports betting operations, and ensure the industry is well-positioned for future development. The bill is simple in its terms, is uncontentious and is welcomed by the members of the industry whose operations it seeks to improve. I commend the bill to honourable members.

Debate adjourned.

 

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