Tabcorp Requests Government Protection

It seems like every industry is having to fight to keep business afloat in this global economy that is suffering, the online casino industry is no exception. The Australian newspaper, The Age, reported that an organization for online casinos, Tabcorp has recently asked the government for protection. The protection is supposed to let the company be able to compete more fairly with other rivaling websites such at the very popular online casinos from the James Packer group, Betfair. There has been a lot that has lead to the protection plan request some say that the event that propelled the request into action was the Melbourne Cup that was recently held.

At the thoroughbred horse race, the Tabcorp was there to take bets and they did just that… they took A$36.5 million in bets for the entire tournament. The online casino organization actually took in 10.3 percent more than they did at the same event in the year prior to this one. It was later revealed to us, however that the percentage that they gained in bets was not something to be too proud of because it was only 5.5 percent higher than it was in 2006. The people over at Tabcorp are putting the blame for their self proclaimed lack luster performances on the “relaxed” advertising regulations in New South Wales and in Victoria which began in October of 2008.

The online casino organization wants protection from the government. They want a three percent cut in wagering tax rates for the state of Australia this includes land based betting and online casinos. The folks over at Tabcorp may cut their royalty payments to the racing industry because of the financial loss of up to A$20 million from the advertising choices made in New South Wales and Victoria. The Chief Executive Officer of Tabcorp, Elmer Funke Kupper said, “Not only do bookmakers now simply copy tote prices, they can give a better price as they operate from jurisdictions where taxes and racing industry contributions are minimal. Basically, we're making it up as we go, state by state, in what is a national industry. This cannot work.”