Funding

[curious]

Racing Desk

26 June 2020

The Racing Industry Transition Agency (RITA) today advised New Zealand racing codes of forecasted funding in 2020/21 of $139.6m which is the same level as was budgeted for the 2019/2020 season before the impacts of COVID-19. This is despite fewer thoroughbred and harness races planned for the upcoming season.

RITA Executive Chair Dean McKenzie said the business and the Codes had responded swiftly to the impact of COVID-19 by taking decisive action to stabilise the industry and retain funding for next season at proposed 2019/20 levels.

"Despite the significant impact of COVID-19 on the TAB's business, major steps taken to reduce operating costs, the contributions from the repeal of the betting levy and the introduction of Betting Information User Charges, and crucially the Government's support to kick-start the resumption of racing provided confidence for the RITA Board to approve the organisation's budget and racing code funding for the forthcoming financial year at its meeting this week,” McKenzie said.

"The changes made to the TAB's business, as well as the levers now passed into law through the passing of the Racing Industry Bill yesterday, will ensure the industry can start preparing for a new year of racing confident of positive stakes levels."

The funding estimate remains subject to confirmation of the 2020/21 Dates Calendar.

Further details of the organisation's budget will be provided in the organisation's Statement of Intent which will be developed following the establishment of TAB NZ on 1 August 2020.

[Hesi]

Is there a 20/21 budget out yet with net betting revenue and costs figures

[mardigras]

I think we had already discussed how the funding should have been able to reach similar to this current year. Given the betting levy reductions - they should have done better. 

[curious]

25 minutes ago, Hesi said:

Is there a 20/21 budget out yet with net betting revenue and costs figures

Further details of the organisation's budget will be provided in the organisation's Statement of Intent which will be developed following the establishment of TAB NZ on 1 August 2020.

[curious]

26 minutes ago, mardigras said:

I think we had already discussed how the funding should have been able to reach similar to this current year. Given the betting levy reductions - they should have done better. 

If they have the money to do that, why were they 26mil in the shit a month or so ago?

 

[Freda]

3 minutes ago, curious said:

If they have the money to do that, why were they 26mil in the shit a month or so ago?

 

Is it possible that the BIUC's and PoC taxes, and gaming duty elimination, are supposed to bring in hitherto untold riches...?

[mardigras]

47 minutes ago, curious said:

If they have the money to do that, why were they 26mil in the shit a month or so ago?

 

Smoke and mirrors - and what Freda said.

[curious]

4 hours ago, Freda said:

Is it possible that the BIUC's and PoC taxes, and gaming duty elimination, are supposed to bring in hitherto untold riches...?

I think they have already been getting the BIUC funding for a while and the duty relief, so should have a pretty good handle on the quantum of that.

I don't think any PoC tax net can go towards stakes can it, if there is any. I expect that at best, that will reduce other net wagering revenue that may have been available for stakes and other distributions to codes.

(1)

The designated authority must apply the money received from—

(a)

consumption charges under section 105 towards the following purposes:

(i)

paying the cost of administering the scheme for consumption charges:

(ii)

funding measures to prevent and minimise harm from gambling:

(iii)

identifying and addressing risks to the integrity of racing betting and sports betting:

(iv)

promoting the long-term viability of New Zealand racing and sport:

(b)

penalties under section 103 or 107A towards the paying the costs of administering the schemes for betting information use charges and consumption charges.

(2)

The designated authority must apply the money received from offshore betting consumption charges to any 1 or more of the persons specified in, and in the amount specified in, determined in accordance with, regulations made under section 119.

(3)

To avoid doubt, the designated authority may make a single payment to a person that relates to any 2 or more of the purposes specified in subsection (1)(a)(ii) to (iv).

Edited June 26, 2020 by curious

[Freda]

10 hours ago, curious said:

I think they have already been getting the BIUC funding for a while and the duty relief, so should have a pretty good handle on the quantum of that.

I don't think any PoC tax net can go towards stakes can it, if there is any. I expect that at best, that will reduce other net wagering revenue that may have been available for stakes and other distributions to codes.

(1)

The designated authority must apply the money received from—

(a)

consumption charges under section 105 towards the following purposes:

(i)

paying the cost of administering the scheme for consumption charges:

(ii)

funding measures to prevent and minimise harm from gambling:

(iii)

identifying and addressing risks to the integrity of racing betting and sports betting:

(iv)

promoting the long-term viability of New Zealand racing and sport:

(b)

penalties under section 103 or 107A towards the paying the costs of administering the schemes for betting information use charges and consumption charges.

(2)

The designated authority must apply the money received from offshore betting consumption charges to any 1 or more of the persons specified in, and in the amount specified in, determined in accordance with, regulations made under section 119.

(3)

To avoid doubt, the designated authority may make a single payment to a person that relates to any 2 or more of the purposes specified in subsection (1)(a)(ii) to (iv).

Yes,  good points,  but I was trying to think as they might.     And,  given the way they seem to operate, who is going to check where any monies come from/go towards ?

And the duty relief hasn't quite hit zero yet,  has it?  

[curious]

1 hour ago, Freda said:

And the duty relief hasn't quite hit zero yet,  has it?  

No but it's 12 months from that so that won't help this coming season.

[Hesi]

16 hours ago, curious said:

Further details of the organisation's budget will be provided in the organisation's Statement of Intent which will be developed following the establishment of TAB NZ on 1 August 2020.

Thanks, missed that on the small screen 

So it will be partly into the season, before forecasted budgets are published, that is not normal business practice

Until we see those figures, you can't really comment on their ability to provide $139.6 mil of funding, and whether the revenue figs are achievable and whether the costs have been reigned in.

They have a moral obligation also to start providing the weekly updates via Racing NZ, similar to what NZTR used to publish in their weekly bulletins, but what Saundry stopped, with a lame excuse that I cannot recall the actual specifics of