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CENTREBET WELCOMES PRODUCTIVITY COMMISSION FINAL REPORT

Online wagering and gaming operator Centrebet welcomes the Productivity Commission’s Report into Gambling.

Centrebet supports the findings of the Final Report – specifically:

Centrebet supports the finding that the funding model for the racing industry should be paid on a gross revenue basis rather than turnover.
Centrebet supports the recommendation that the NSW and Queensland governments work with the racing authorities in those States to replace their turnover fees with more competitively neutral and efficient product fees "as soon as possible".
Centrebet supports the recommended amendment of the Interactive Gambling Act ("IGA"), to allow Australians to play online poker with regulated Australian operators, with subsequent evaluation of whether access to casino games should be permitted.
Centrebet supports the recommended increased protection and harm minimization measures for Australians, as well as its finding that evidence-based assessment is needed in this area.
Centrebet supports the recommendation that the TAB retail exclusivity should not be renewed. Centrebet supports the recommendation that the Australian Government should request that the ACCC examine and report publicly on any adverse implications for competition associated with the ownership arrangements for Sky Channel.

Centrebet welcomes and supports the recommendations made by the Productivity Commission in its Gambling Report.

Centrebet's CEO, Con Kafataris, said, “The Productivity Commission has set out clear and sensible guidelines for the appropriate development of the Australian online gambling industry into the future.

“The Commission has made a considered response to the current debate around whether payments to the racing industry should be levied on the basis of gross revenue or turnover. The Commission found that a turnover-based levy is poor policy and is against the interests of all stakeholders in the racing industry. Its recommendation is that the New South Wales and Queensland governments should work with racing authorities in those states, “as soon as possible”, to replace their across-the-board turnover fees with more competitively neutral and efficient product fees.

“Coming so soon after the Federal Court’s recent decision which found the current turnover-based regime to be protectionist and unlawful, the debate about whether product fees for the racing industry should be levied on the basis of revenue or turnover would appear to be over.

“It is in the interests of the racing industry as well as wagering providers that this be settled as quickly as possible. We urge the governments and racing authorities to act on its recommendations quickly.

“Centrebet also supports the recommended amendment of the Interactive Gambling Act to allow Australian providers to offer online poker to Australians. We acknowledge the reservations by the Federal Government in relation to this and encourage addressing the concerns around problem gambling and harm minimisation to resolve this.” Mr Kafataris said.

“The Commission has found the online gaming market in Australia to be almost $800 million - almost 3 times the current size of the regulated sports betting market. The existing legislation ensures that the Australian online gaming market is exclusively serviced by offshore providers, not regulated or taxed in Australia. This provides inadequate protection for Australian online gamblers.”

Mr. Kafataris said Centrebet looks forward to working closely with governments and regulatory authorities in the refinement and implementation of the Report's recommendations.

CENTREBET ASX PRESS RELEASE, 25/06/2010