Racing NSW Hits Tabcorp With Legal Action Over $6 Million Revenue Loss

Racing NSW Hits Tabcorp With Legal Action Over $6 Million Revenue Loss

NSW Supreme Court papers have revealed that Racing NSW has launched legal action against Tabcorp, a major sponsor of The Everest, over allegations it failed to adequately promote The Kosciuszko, a support race on Sydney’s marquee spring carnival day.

The famous Kosciuszko race is held on The Everest day for horses trained exclusively in regional NSW. Punters are required to buy $5 sweepstakes tickets through Tabcorp retail outlets and online. However, only 162,461 tickets were sold last year, down significantly from the previous year’s 308,168 and the pre-determined 250,000 target.

Racing NSW alleges that it will lose “no less than $6 million” in revenue due to what it claims is a break in a sponsorship and strategic alignment agreement with Tabcorp for The Everest and The Kosciuszko.

According to the Sydney Morning Herald, Tabcorp has refuted the accusations, calling them “vague, embarrassing, and irrelevant.” The betting giant will argue that there was no agreed-upon minimum target revenue or required level of ticket sales.

Tabcorp is a sponsor for a number of major sporting teams and codes, having recently signed on with the Greater Western Sydney Giants as a platinum partner. GWS, who are a Sydney-based club but who have a second home in the nation’s capital, have received backlash for the deal, with many questioning the moral implications of this kind of sponsorship.

The ACT attorney general, Shane Rattenbury, who has previously taken on the gambling industry for targeting young men, called the decision irresponsible. “I am really disappointed to see the Giants strike this deal with the TAB as we need to see a reduction in the link between sport and sports gambling,” Rattenbury said.

“There is simply too much advertising during sport, and young people, in particular, are significantly overexposed and are, in fact, facing saturation levels of gambling advertising. It’s not a healthy connection”.

This is the second major court case in which Racing NSW has been involved this year after launching preliminary proceedings against Racing Victoria and four other state racing jurisdictions over an alleged plot to start a breakaway national body separate from Racing Australia.

The Everest has been at the heart of that dispute after V’landys launched the world’s richest turf race in October 2017, a time when major Melbourne races have traditionally dominated.

B&T contacted Tabcorp and Racing NSW for comment but did not receive a response prior to publication.

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