The long-term sustainability of Queensland racing has been secured, with the Palaszczuk government on Monday announcing the implementation of a new 5% racing levy which will come into effect from December 1, 2022.
In line with the upcoming state budget, a number of changes are set to be made at racetracks right across Queensland, while the point-of-consumption tax (POCT) is set to rise from 15% to 20%.
The new POCT will also include bonus bets, which previously were deducted by wagering service providers (WSPs).
Currently, all Queensland racetracks are exclusive to Tabcorp, but that too is set to change, opening up opportunities for online bookmakers and other betting agencies to sponsor racetracks, races and events.
“While Tabcorp will still offer on-course betting services and retain retail exclusivity, its on-course ‘sponsorship and advertising' exclusivity will end once these changes take effect,” Racing Minister Grace Grace said.
“This means race clubs across Queensland will have opportunities to enter into new sponsorship agreements with other wagering service providers.
“Other benefits of the agreement include a further injection of $50 million from Tabcorp to cater for future racing infrastructure needs, and a one-off payment of $100 million to Racing Queensland.”
Country racing could be the big benefactor out of this announcement, with clubs free to negotiate on-course signage and advertising in order to maximise commercial returns.
On top of that, the $150 million injection into Queensland racing is likely to see a number of prizemoney boosts and facility upgrades, which will likely start at grassroots clubs.
In Queensland, annual race meetings are already either the biggest or second-biggest event in 85 communities across the state, so extra funding and jobs could see those figures grow.
“The introduction of the racing levy by the Palaszczuk government will ensure investments in jobs, events and communities will continue to grow,” RQ Chairman Steve Wilson AM said.
“Over the past five years, the industry's economic contribution to Queensland has grown to $1.9 billion and delivered 4,000 additional jobs in the Sunshine State.
“On an annual basis, 85 communities host a race meeting that is either the biggest or second largest event for the year.
“We are grateful to the Palaszczuk government for their ongoing support and will make further announcements relating to prize money increases, infrastructure investments and industry funding ahead of its proposed implementation on December 1.”
In the past four years, prizemoney in Queensland has increased by more than 50%, going to $76.4 million, while payments to participants have grown 64% to $110 million.
Prizemoney increases, infrastructure development and industry funding announcements are expected to be made by Racing Queensland in the lead up to the proposed implementation on December 1, 2022.