RACING AND BETTING AMENDMENT BILL 2002 Second Reading Speech

Northern Territory Second Reading Speeches

RACING AND BETTING AMENDMENT BILL 2002

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Madam Speaker, I move that the bill be now read a second time.

Recently I announced a number of changes affecting bookmakers including a reduction in the tax rates, the migration of Sportingbet Australia to the Territory and a proposal to remove the restriction on bookmakers offering odds based on final totalisator dividends. This bill proposes to address the latter of these issues.

Currently the Racing and Betting Act prohibits bookmakers from offering to pay winnings that are the equivalent to, or based on, a totalisator dividend. The prohibition does not extend to dividends offered by the Northern Territory’s licensed totalisator, NT TAB. Accordingly, a bookmaker, when offering to pay winnings that are the equivalent of a totalisator dividend, can currently only offer the Northern Territory totalisator prices. The particular provision dates back to 1989. It is difficult to understand its rationale in today’s wagering environment. It is difficult to see that limiting a bookmaker to offer a specific tote dividend presents any benefit to the Northern Territory. A number of other jurisdictions do not restrict the offering of odds based on final tote dividends. The current restriction has an impact on current and future Territory operators.

Recently I announced the arrival of Sportingbet Australia Pty Ltd to Darwin. One of the most popular products enables the client to choose the option taking the final New South Wales or Victorian tote dividend. Accordingly, the current restriction would prohibit that product and does jeopardise the potential tax revenue expected from that business. Furthermore, International Allsports currently offer a Diviplus product which pays above the highest tote dividend from the range of tote pools in New South Wales, Victoria and Queensland. Removing the restriction will remove any doubt about the legitimacy of that product.

As noted earlier, there appears no basis for the legislative restriction. Its removal will provide punters with greater flexibility and betting options and is consistent with National Competition Policy Principles. I have an explanatory memorandum with me that I will send across to the shadow minister.

Madam Speaker, I commend the Racing and Betting Amendment Bill 2002 to honourable members.

Debate adjourned.

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