Racing Victoria has announced the base terms under which wagering service providers can publish and use Victorian thoroughbred race fields, known as the race fields policy, from July 1 2016.

The announcement comes following a detailed review by RV of its current policy which included extensive consultation with a broad range of wagering service providers and other stakeholders.

In releasing the base terms of its next policy, RV notes that the current policy has provided strong revenues for thoroughbred racing in Victoria.

RV notes the need to continue to analyse the policy’s impacts and consult with wagering service providers over the coming months and years to further improve areas of the policy.

In recognition that further enhancements may be needed as the wagering market continues to evolve, RV has announced that the terms of its next policy will be for the approval period of one year from 1 July 2016 to 30 June 2017 except in the case of wagering service providers licensed by the Norfolk Island Gaming Authority where the approval period is from 1 July 2016 to 30 November 2016.

The core of the policy for FY17 will be unchanged from that currently in place, however the following changes will be implemented for the betterment of Victorian thoroughbred racing:

1. A reduction of the current threshold for a 1% turnover rate from $15 million to $5 million bringing Victoria thoroughbred racing into line with other racing jurisdictions. This move is not designed to increase revenue for RV with funds received as a direct result of this change to be returned to wagering service providers in the form of incentives and promotions to grow wagering on Victorian thoroughbred racing;

2. A series of compliance measures will be implemented to help protect the integrity of thoroughbred racing and this important revenue base;

3. The Exchange category rate will be changed from a scaled percentage of turnover to a flat 40% of gross revenue on all Victorian meetings (Standard, Group and Listed, Premier); and

4. A minimum bet limit will be introduced as soon as practically possible with extensive consultation to be undertaken in the coming weeks to ensure RV implements an effective and appropriate policy for all stakeholders. A target date of 1 October 2016 has been set.

RV also advises that the Board is to consider further at its 30 June Board Meeting the current variance between the fees applied for pari-mutuel and fixed odds bets, with the former charged at a lower rate.

Accordingly, RV advises that there will be a supplementary announcement relating to the pari-mutuel rate and tote derivative products after this date.

Furthermore, RV has been extremely concerned about potential deficiencies in the regulatory functions conducted by NIGA which may expose Victorian racing to unacceptable integrity risks.

In responding to those concerns, in March 2016, RV suspended all new race fields applications from wagering service providers licensed by NIGA.

On 7 April, 2016 the Federal Minister for Major Projects, Territories and Local Government directed the NIGA to suspend issuing and renewing gaming licences, and commissioned an audit of the NIGA.

Wagering service providers licensed by the NIGA with current race fields approvals may apply to RV for approval up to 30 November 2016 on the terms of the FY17 policy from 1 July 2016 and will have to accept additional reporting, disclosure and auditing measures.

RV Chief Executive, Bernard Saundry, said RV will be working directly with wagering service providers over coming weeks to ensure details are finalised and the FY17 race fields policy is implemented in time for 1 July 2016.

“Racing Victoria values its relationships with wagering service providers and we will continue to work with them to provide the best sport and wagering product we can for our mutual customers, the punters,” Mr Saundry said.

“A priority will be a process of further consultation with wagering operators and customers on the introduction of a minimum bet policy which we are committed to achieving as soon practically possible. The minimum bet policy must be effective and appropriate for all stakeholders to ensure that Victorian thoroughbred racing remains an attractive product for all.”