Sports

NRL, bookies at war over taxes as Greenberg ready to intervene

Apart from the NRL's insistence that it levies bookmakers the greater of three per cent on turnover or 20 per cent of gross revenue on each individual bet type that has four or more options, such as first tryscorer markets, bookmakers are revolting against plans to backdate the charges to March 1.

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Given the raft of upset results over the first two months of the season, it could see the NRL pocket a windfall estimated to be several million dollars above fees they've collected under the terms of temporary agreements.

The higher taxes bookmakers could be forced to pay has already prompted some to hint they will drastically shave back their promotion of NRL markets, which would ultimately cut the amount of revenue the code could generate from the growth of sports betting.

Some of the country's racing jurisdictions, which almost exclusively derive their income from gambling, charge betting taxes at a lower rate than those proposed by the NRL, which could watch bookmakers pump millions into more liberally marketing markets on AFL and rugby union.

The longtime fee on standard bet types such as head-to-head and line-betting has traditionally been 1.2 per cent of turnover.

One way for bookmakers to skirt having to fork out the extra fees for bet types with four or more winning options would be to realign how they offer popular markets, such as margin betting.

Instead of offering a margin option with five winning options – including 1-12 and 13+ for both teams alongside a draw – bookmakers have floated the prospect of cutting it back to just three winning options, thus foregoing the NRL's inflated fees for markets with four or more options.

There is also a sense within NRL headquarters that the hardline stance with the new integrity accords is a sign the game is comfortable distancing itself from gambling, even if it results in the game not maximising its revenue from the sector.

The Tim Simona scandal and a long-running investigation into match fixing in the code, which ultimately led to no charges, triggered a raft of negative publicity for rugby league.

The NRL has already banned all wagering sponsorship and signage from its new four-team women's competition, which is due to kick off later this year.

A recent Roy Morgan poll said 7.6 per cent of money bet in Australia is on NRL and State of Origin, a figure which outstrips AFL's (6.8 per cent) slice of the wagering pie.

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Adam Pengilly

Adam Pengilly is a Sports reporter for The Sydney Morning Herald.

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Sports

NRL, bookies at war over taxes as Greenberg ready to intervene

Apart from the NRL's insistence that it levies bookmakers the greater of three per cent on turnover or 20 per cent of gross revenue on each individual bet type that has four or more options, such as first tryscorer markets, bookmakers are revolting against plans to backdate the charges to March 1.

Loading

Given the raft of upset results over the first two months of the season, it could see the NRL pocket a windfall estimated to be several million dollars above fees they've collected under the terms of temporary agreements.

The higher taxes bookmakers could be forced to pay has already prompted some to hint they will drastically shave back their promotion of NRL markets, which would ultimately cut the amount of revenue the code could generate from the growth of sports betting.

Some of the country's racing jurisdictions, which almost exclusively derive their income from gambling, charge betting taxes at a lower rate than those proposed by the NRL, which could watch bookmakers pump millions into more liberally marketing markets on AFL and rugby union.

The longtime fee on standard bet types such as head-to-head and line-betting has traditionally been 1.2 per cent of turnover.

One way for bookmakers to skirt having to fork out the extra fees for bet types with four or more winning options would be to realign how they offer popular markets, such as margin betting.

Instead of offering a margin option with five winning options – including 1-12 and 13+ for both teams alongside a draw – bookmakers have floated the prospect of cutting it back to just three winning options, thus foregoing the NRL's inflated fees for markets with four or more options.

There is also a sense within NRL headquarters that the hardline stance with the new integrity accords is a sign the game is comfortable distancing itself from gambling, even if it results in the game not maximising its revenue from the sector.

The Tim Simona scandal and a long-running investigation into match fixing in the code, which ultimately led to no charges, triggered a raft of negative publicity for rugby league. (more…)

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