Australia ASX-listed gambling group Tabcorp Holdings faces a legal dispute with Racing Queensland related to Australian betting’s new point-of-consumption (POC) tax charge.
Unable to reach an agreement on POC ‘additional payments’, the governance of Racing Queensland has moved to file a Supreme Court challenge against Tabcorp subsidiary UBET Queensland.
Implementing its state budget mandate, in October 2018 the Queensland government sanctioned the introduction of a 15% net POC tax charge on remote betting services.
Following its AUS $11 billion merger with Tatts Group, an enlarged Tabcorp dominates Australian racing wagering, acting as principal totalisator provider for the states of Queensland, New South Wales, Victoria, South Australia and the Northern Territory.
The governance of Racing Queensland and Tabcorp were reported to be negotiating terms on ‘additional fees’, the ASX betting will be forced to pay beyond its existing agreement, which
Racing Queensland and Tabcorp have been negotiating the terms of ‘additional fees’ the ASX betting group should pay outside of the pair’s existing product totalisator agreement, which sees Tabcorp pay Racing Queensland circa AUS $170 million (€100m) in funding per year.
Closing Friday, Tabcorp governance released a corporate statement, outlining that it would ‘defend its position strongly’.
“Racing Queensland is seeking damages and other relief under two arrangements, including the principal document governing the arrangements between Racing Queensland and UBET Qld Limited. The claim has been lodged in the Supreme Court of Queensland.” reads Tabcorp’s statement.
“The Company understands that the dispute relates to the calculation of fees following the introduction of point of consumption tax in Queensland.
“The Company is currently reviewing the issues raised and the relevant legal claims made by Racing Queensland and will update the market in due course. Pending further analysis and review the Company expects to defend its position vigorously.”