Harness Racing Victoria (HRV) faces a payment of $1.4m from yesterday’s decision by the Court of Appeal of the Supreme Court of Victoria to find in favour of the State Government regarding the imposition of a Health Benefit Levy on Tabcorp’s gaming machines for the full financial year of 2012/13, despite Tabcorp ceasing to operate gaming machines from August 2012.
The three codes of racing were a 25 per cent partner with Tabcorp at the time and will now share in the $35m levy imposed on Tabcorp.
HRV had previously provided for the potential levy in its 2012/13 financial accounts, however the decision will have a cash impact in the current year.
HRV Chief Executive John Anderson said: “The Chairmen of the three codes have previously written to the Premier seeking a resolution to the unintended consequences on the racing industry of the levy’s imposition. In total the Victorian Racing Industry is required to contribute $8.7m of the unforeseen expense. HRV will continue the discussion with the State Government on the impact this levy will have on the industry”.