Tatts deal a $90m blow to industry

QUEENSLAND'S racing industry is missing out on tens of millions of dollars every year after its former chiefs ignored legal advice and waived fees of almost $90 million from gaming giant Tatts Group.

Queensland Race Product Co - a non-profit company established by Racing Queensland Limited to collect race information fees from the gambling industry - has foregone the money over the past three years.

Instead, the money has gone to the bottom line of Tatts Group - the betting behemoth which last year raked in $3.9 billion from wagers on racing, sports and lotteries and made a $319 million profit.

The chairman of RQL at the time of the decision - Bob Bentley - was also then a Tatts director. Mr Bentley was the only RQL director to not also sit on the board of Queensland Race Product Co.

Under a 15-year agreement which expires next year, Tatts Group (formerly UniTAB) has the rights to run betting on all Queensland racing.

Laws introduced in September 2008 allow Product Co to charge race information fees of 1.5 per cent on all wagering turnover above $5 million. Tatts Group collected the fees from betting groups in other states for wagers on Queensland races.

But, unlike counterparts in NSW, RQL allowed Tatts to deduct "agency" costs, reducing the amount flowing into the industry's coffers by $20 million to $30 million per year.

"It's an absolute disgrace. It's a hell of a lot of money," said Bill Andrews, a former director of RQL and Product Co who opposed a decision that now shapes as a magnet for any government-initiated inquiry into the industry.

Product Co, whose directors included Labor powerbroker Bill Ludwig, ignored legal advice it sought that recommended that Tatts should be charged the full fees.

Mr Andrews' push for a senior barrister to be engaged for further advice was rejected.

Two months ago, Mr Bentley, who remains a Tatts director, sold 45,000 shares in the company for $151,650. He still owns 115,000, worth $377,200 yesterday.

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