Tabcorp Holdings retains Victorian off course betting

Photo / Supplied

Gambling giant Tabcorp Holdings has paid A$410 million ($515 million) to keep its hold on Victoria's A$4.4 billion wagering industry until 2024.

Long-term licence holder Tabcorp beat Tatts Group to the rights to operate off-course betting in the state for 12 years from August 2012.

The Victorian Government described it as a great result for racing in the state, although exactly how much of the funds will flow through to the racing industry has not been determined.

Gaming Minister Michael O'Brien said there were two strong bids from Tabcorp Wagering (Vic) and Tatts Group's Victoria Licence Bid Co.

O'Brien said Tabcorp's bid had an upfront premium payment of A$410 million, but he would not say what Tatts put up. "I can say that on the whole, and on the financials as well, Tabcorp was the preferred bidder."

The Government will not receive any annual payments from the licence but will get tax generated by the industry.

O'Brien said the A$410 million upfront payment represented "strong and fair value" in the current environment.

The announcement ends the uncertainty about the licence for the bidders and the Victorian Racing Industry, which receives revenue through its joint venture with Tabcorp.

Racing Minister Denis Napthine said there would be further negotiations between Tabcorp and the industry about the returns, which would then be divided among the three codes of horse racing, harness racing and greyhound racing.

"This will deliver for Victorian racing an increased revenue stream in real terms over the 12 years of the licence," Napthine said.

"This will help the three racing codes to grow and develop racing."

The industry received A$322 million in payments in 2009/10, when wagering turnover in the state's racing industry was worth A$4.44 billion.

Tabcorp, formerly the TAB, has had a monopoly on off-course betting in Victoria for 50 years.

At present, its wagering licence is linked to its gaming operator's licence but they will operate separately from 2012.

The new 12-year wagering and betting licence allows it to conduct totalisator and fixed-odds betting and to operate the only off-course retail network in Victoria.

O'Brien said the A$410 million would go into consolidated revenue in the budget but represented only a tenth of the funding that had been lost in GST receipts.

"It's a Band-Aid on a fairly gaping wound."

In other news from Victoria, Canterbury apprentice Daniel Stackhouse has applied to extend his stay in Melbourne for six more months.

The 21-year-old joined the Peter Moody stable on a three-month loan in June and has been a real success story, riding 14 winners from 52 rides at metropolitan meetings for a strike rate of almost 30 per cent.

Stackhouse, who is due to complete his apprenticeship at the end of the month, said he had consulted Moody and his New Zealand master Tom Hazlett before making his application to transfer his indentures to the leading Caulfield-based trainer.

"Tom Hazlett, my boss in New Zealand, has been helping me with it."

Stackhouse, who had lost his allowance in New Zealand, was able to claim 3kg when he arrived in Melbourne and has since had it reduced to 2kg.

"Riding for a top stable and being able to claim has given me every benefit," he said.

"I've definitely learned a lot and improved since coming here."

Victorian Jockey's Association executive Des O'Keeffe said New Zealand Thoroughbred Racing would decide on Stackhouse's application before Racing Victoria made any decision to transfer his indentures to Moody.

-AAP