Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

This Bill is cognate with the Australian Jockey and Sydney Turf Clubs Merger Bill
2010.

Overview of Bill

The objects of this Bill are as follows:

(a) to provide that a betting activity in respect of computer simulated horse racing,
harness racing or greyhound racing events, such as the game known as
"Trackside", may be approved under the Totalizator Act 1997 (the principal
Act),

(b) to entitle TAB Limited to an exclusive approval to conduct a betting activity
involving computer simulated racing events until 2097,

(c) to enable the Minister to direct that changes be made to a racing agreement,

(d) to provide that Racing NSW is to compensate certain bodies if they lose an
entitlement to revenue as a consequence of the approval of a betting activity
involving computer simulated racing events,

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Totalizator Amendment Bill 2010
Explanatory note

(e) to provide for a tax-free threshold in respect of the betting tax payable under
the Betting Tax Act 2001 in connection with an approved betting activity
involving computer simulated racing events,

(f) to make other minor and consequential amendments.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on a day or days to be
appointed by proclamation.

Schedule 1 Amendment of Totalizator Act 1997
No 45
Under section 13 of the principal Act, the Minister may approve of the holder of a
licence under that Act conducting a betting activity (otherwise than by means of a
totalizator) on particular events or contingencies, subject to conditions. Such an
approved betting activity is then generally subject to the same provisions under that
Act as totalizator betting. Schedule 1 [1] amends section 13 so that a betting activity
on computer simulated horse racing, harness racing or greyhound racing events is a
betting activity that may be approved by the Minister.

Schedule 1 [2] entitles TAB Limited to an exclusive approval to conduct a betting
activity on computer simulated racing events until 6 March 2097, which is the end of
the term of the licence held by TAB Limited.

Schedule 1 [3] authorises, for the purposes of the Trade Practices Act 1974 of the
Commonwealth and the Competition Code of New South Wales, the exclusive
approval of the holder of a licence under the principal Act conducting a betting
activity on computer simulated racing events.

Schedule 1 [4] inserts proposed sections 117B and 117C. Proposed section 117B
enables the Minister to direct that changes be made to a racing agreement that the
Minister considers to be necessary or desirable for ensuring that the agreement is in
the best interests of racing in New South Wales. However, the Minister will not be
able to make such a direction after 31 January 2011. Proposed section 117C provides
that Racing NSW is to compensate the Provincial Association of New South Wales
and Racing NSW Country Limited if those bodies lose an entitlement to revenue as
a consequence of the approval of a betting activity on computer simulated racing
events.

Schedule 1 [5] enables the making of regulations of a savings or transitional nature
consequent on the enactment of the proposed Act.

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Explanatory note page 3

Totalizator Amendment Bill 2010
Explanatory note
Schedule 2 Amendment of other Acts
Schedule 2.1 [1] and [2] amend the Betting Tax Act 2001 to provide that betting tax
is not payable (until after 30 June 2034) on net earnings in connection with the first
$255 million of bets placed with a totalizator licensee in any financial year in respect
of an approved betting activity conducted by the licensee on computer simulated
horse racing, harness racing or greyhound racing events.

Schedule 2.2 inserts a savings and transitional provision into the Gaming Machines
Act 2001 to revoke an existing approval granted under that Act in respect of the game
known as "Trackside" as a multi-terminal gaming machine.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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