Economy
Tote’s terrible return
TASMANIA’S $756 million betting agency Tote returns only half the funds taxpayers are required to pay the state’s three racing codes each year.
The state-owned Tote Tasmania’s annual turnover is approaching $1 billion, with most of the money coming from international punting syndicates.
But the return to taxpayers is about $12 million in dividends and licence fees.
Despite this, Tasracing, the new administrative arm of racing, spends $27 million a year of money straight from the state budget to fund the three racing codes. Tasracing keeps about 13 per cent of the stakemoney for administrative costs.
The $27 million taxpayer- funded stakemoney cost is locked into a 20-year contract.
The state government has signalled that it will renew its bid to sell off Tote, which last year made an after tax profit of only $6.9 million. However, the Greens and Liberals may try to block the sale because there is a parliamentary inquiry into the future of Tote.
Tote’s turnover has grown by 135 per cent to $756 million since 2005, but according to experts the extraordinary growth has stemmed largely from Tote offering international punters generous rebates and commissions on their wagers.
Former TAB chief executive officer Terry Clarke says Tote should not be sold, but in a submission to the parliamentary inquiry he said
that: “The state now owns and bears the business risk from operating a gambling company which has no relationship to the Tasmanian racing industry that was instrumental in its creation.”
Economist Saul Eslake said a sale of Tote would be sensible …