Wagering giant Tabcorp has slammed key aspects of the Productivity Commission's report into gambling.

Tabcorp chief executive Elmer Funke Kupper focused his criticism on the recommendation for a revenue-based product fee funding model - along the lines of Racing Victoria's model - and the call for a probe into Tabcorp's ownership of Sky Racing.

The Productivity Commission's 1100-page report said the TAB's retail exclusivity "represents a rare privilege and should not be renewed".

Tabcorp, however, has an unlikely ally in RVL, which opposes the recommendation on retail exclusivity.

"We've done all the numbers. We (the racing industry) will be in dire straits without the TAB's retail exclusivity," RVL chief executive Rob Hines said.

"We wouldn't be able to react quickly enough to the loss (of income). We would urge the Government not to implement it."

Kupper said the commission's stance on racing and wagering "shows a serious lack of understanding of these industries, both in Australia and around the world".

"The Productivity Commission essentially advocates a contraction of the Australian racing industry. It would achieve this if its recommendation to implement a UK-type funding model were to be adopted," he said.

"The Australian industry is performing infinitely better and following in the path of the UK would be very unwise.

"The revenue-based product fee model that the commission advocates puts the future of the racing industry in the hands of half a dozen corporate bookmakers and their choice of business models and margins.

"If implemented it would guarantee a contraction of the racing industry and loss of jobs."

But corporate betting giant Sportsbet.com.au's chief executive Matt Tripp welcomed the commission's stance on race fields legislation.

"We have fought hard for race fields levies to be calculated on gross revenue and this report overwhelmingly supports our view that this is the fairest method of all," Tripp said.

Courtesy of ADAM HAMILTON of the HERALD SUN, 25/06/2010