Investor Presentaiton
Racing Industry Funding Model Alternatives
1 Separation Model
2 Contractual Model
3 Joint Venture Model
4 Integrated Ownership Model
Economic
Structure
Govt
Funding
Licence
Tax
Racing
industry
TAB
Racing
Product
Govt
Govt
Licence
Tax
Licence
Racing Racing
industry Product
TAB
Racing
Product/
Product Fee +
Profit Share
Joint
Venture
Product Fee
Racing
industry
Govt
Established
by Act
Tax
Wagering
Services/
Profit Share
Racing
industry
100%
beneficial
ownership
Profits
TAB
TAB
Jurisdictions
Tasmania
.
NT
•
ACT
Racing Industry
Funding
•
Direct Government Funding
•
Key Racing
Industry
Considerations
No dependence on TAB for
industry funding
* Minimal nexus between racing
product and TAB revenues/
potential misalignment of
interests
* Racing industry has limited input
on TAB's operations
× Racing industry funding subject to
Government's annual budget
decisions
(typically rev share + fixed payment)
Queensland
•
SA
Product fee (fixed + variable)
Funding arrangements,
obligations and responsibilities of
each party are contracted and
clear
Removes or mitigates exposure
to operating and capital cost risks
* Racing industry has limited input
on TAB's operations
* Funding structures need to be set
at appropriate levels as racing
industry is dependent on the
Operator
Victoria
NSW (quasi-JV)
Product fee (fixed + variable)
Profit share
Greater alignment of interest
between Operator and Racing
Industry (in theory)
✓ Each party has an influence or
control on key issues affecting the
other party
× Complexity of decision-making
through JV committees
× Potential for disagreement on key
issues
× Racing industry exposed to
operating cost and capex risk
WA
•
New Zealand
•
Profit share
Racing industry / government
controls TAB and makes all
decisions that affect funding
× Racing industry retains full
exposure to all operating risks
(i.e. revenue, cost and capex)
Consultation Forums | Future of the Western Australian TAB
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