Tabcorp receives legal claim from Racing Queensland

Australia tabcorp

Tabcorp Holdings and its UBET Qld unit have received a statement of claim from Racing Queensland related to the state’s new point of consumption tax (POC).

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 company said in a statement to the Australian Stock Exchange.

The claim has been lodged in the Supreme Court of Queensland. 

Tabcorp confirmed the dispute relates to the calculation of fees following the introduction of the POC, but gave no further details as to the amount of the claim. 

“Pending further analysis and review the company expects to defend its position vigorously,” it said. 

According to local media the dispute arose after Tabcorp and Racing New Zealand were unable to reach an accord over additional fees it needs to pay from its online operations. 

Tabcorp pays more than $900 million a year to Australia’s racing bodies, but under the POC, bookies must also pay taxes to the state’s racing authority when they take bets from citizens of that state. 

Queensland’s POC tax is set at 15 percent of wagers and came into force in October 2018.

Related Articles

Tabcorp EBITDA hit from power outage less than $10 million

Tabcorp said a power outage that took out its systems over the weekend caused it to lose wagering turnover over the weekend, but the hit to EBITDA will be less than $10 million. It says its systems have now largely been restored. 
Australia tabcorp

Tabcorp digital turnover grows, though group posts loss

Tabcorp digital turnover outstripped retail turnover for the first time in a full year after Covid-19 forced the closure of its outlets and tipped the group to an $870 million ($631.8 million) loss.

Tabcorp secures debt waivers as part of Covid-19 response

Australian wagering giant Tabcorp announced it has secured agreement from its bank lenders for a waiver of leverage and interest cover covenants in response to the financial impact of the Covid-19 pandemic.  The waiver is related to its Syndicated Facility Agreement, representing facilities of A$2.2 billion (US$1.6 billion), according to a company filing. As of […]

Tabcorp lottery segment drives FY20H1 revenue

Australian wagering giant Tabcorp announced a 4.4 percent increase in group revenue for the first half of the 2020 financial year, driven by performance in its lotteries business.  The company said that it registered more than 300,000 new customers in the past six months – translating to strong growth in both digital and retail lotteries […]