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Legislative Assembly for the ACT: 2000 Week 5 Hansard (11 May) . . Page.. 1548 ..
Ms Tucker asked the Treasurer, upon notice, on 30 March 2000:
In relation to sports betting licence fees:
(1) In setting the level of the fee, what considerations were taken into account for:
(a) The cost of the regulation of the industry, including, the implementation of transparent and accountable reporting mechanisms;
(b) The cost of problem gambling;
(c) The cost of research on the social impact of online sports betting.
(2) What is the projected total cost of administering such a regulatory regime, and of conducting the appropriate research over the 15 year life of the licenses.
(3) Was the Gambling and Racing Commission consulted on setting the fee structure for these businesses:
(a) If so, what was the advice tendered by the Commission.
(4) Other factors and procedures that led to the fee being set at the current rate.
Mr Humphries: The answer to the member's question is as follows:
(1)(a) The considerations taken into account in setting the level of application and annual fees for sports betting operators were confined to the cost of regulation of the industry, including the implementation of transparent and accountable reporting mechanisms. The fees on turnover and commissions for different wagering contingencies were determined at rates that enabled ACT sports betting licensees to compete with national and international competitors whilst still providing, a valuable return to the community.
(1)(b&c) The cost of problem gambling and the cost of research on the social impacts were not considerations in setting the fees. These costs were not known then, nor in 1999, even after the Select Committee on Gambling tabled its Final Report on the Social and Economic Impacts of Gambling in the ACT. However, the Government has provided in each of the 1999-2000 and 2000-2001 budgets, $500,000 for research in these areas.
(2) It is estimated that the cost of administering the sports betting regulatory regime is approximately $180,000 per annum, equating to $2.7m over the 15 years of the licences. The Government has allocated $500,000 in 1999-2000 and 2000-2001 to conduct research into gambling and problem gambling. It is not possible to determine what component of these research costs will be devoted to sports betting.
(3) The fee structure was put in place prior to the Gambling and Racing Commission's establishment in 1999. The Gambling and Racing Commission has under review all fee structures to ascertain whether they are appropriate in light of the many rapid developments that have occurred in the industry in recent times.
(4) Competitive licence fees were required to attract the highest calibre of potential sports betting operators to the ACT in the industry's infancy, particularly as the larger, more creditable operators were being wooed by many different jurisdictions. The ACT needs to maintain that competitiveness and has its fees under regular review.
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