QUEENSLAND RACE WAGERING LICENCE Expressions of Interest January 2014

2014

2 2014 | QUEENSLAND RACE WAGERING LICENCE

June 30, 2014 will be a landmark day for the Queensland racing industry.

This day provides a significant opportunity to redefine the Queensland racing wagering landscape to build a more robust racing and wagering industry in Queensland.

In Queensland, race wagering is regulated by the Wagering Act 1998 Qld (Act). Under the regulatory framework established by the Act, a race wagering licence is required to conduct race wagering.

Racing Queensland has operated under the traditional model whereby the funding has been derived from a single race wagering operator. The opportunity presented with a new race wagering licence gives Racing in Queensland the chance to completely look at the current landscape where wagering is changing significantly.

As such expressions of Interests designed to meet a new and exciting world of wagering will be considered outside the traditional race wagering operator model. Organisations are encouraged to explore new alternatives for our state in their submissions including multi-operator models.

A licence authorises the conduct of wagering on our thoroughbred, harness and greyhound racing events held in Queensland, both on- and off-course.

The Act provides for an “exclusivity period’ which is scheduled to end on June 30, 2014.

The conclusion of the “exclusivity period” therefore presents an opportunity for your organisation to obtain a licence.

The racing and wagering landscape has progressed rapidly over the past two decades and further innovation is anticipated in the coming years.

The Queensland racing industry wants to consider your organisations concepts for the future commercial arrangement of the licence.

3QUEENSLAND RACE WAGERING LICENCE | 2014

The Queensland racing industry is one with a long and proud history dating back over 150 years and reaching far and wide across our great state.

As an insight into the current standing of Queensland racing the following is fact sheet and detailed information provided;

Queensland wagering on Queensland race product $515 Million

Queensland wagering on all race product $2.23 Billion

Queensland Product and Program Fee $131 Million

Queensland industry participants 68,134

Queensland race clubs 133

Annual Queensland race meetings 1,575

Annual Queensland races 12,244

Annual Prizemoney distributed in Queensland $109 Million

Queensland racing industry fact sheet – 2013

THE QUEENSLANDRACING INDUSTRY

4 2014 | QUEENSLAND RACE WAGERING LICENCE

Wagering on Queensland product

Wagering on all product

Net wagering returns

Across 363 days a year many thousands of Queenslanders participate in wagering activities on Queensland, interstate and international racing product.

More than $542 Million is wagered on Queensland thoroughbred, harness and greyhound races held in the State through the TAB.

WAGERING

In excess of $2.23 Billion is wagered on all racing through Australia and the world.

5QUEENSLAND RACE WAGERING LICENCE | 2014

Owners and Syndicates 17,785

Trainers 2,760

Staff Employed by Trainers 3,026

Total Participants in Producing Racing Animals 29,939

Race Club & Industry Paid Full Time Staff 390

Race Club & Industry Paid Part Time Staff 3,144

Contracted Staff 4,113

Bookmakers 139

Bookmakers Staff 285

Jockeys/Drivers 575

Total Participants in Producing Racing Product 8,646

TAB Wagering Staff 1,501

Indirect Employment 28,048

Total Participants in Racing 68,134

Source: Size and Scope of Racing in Queensland Report 2009

When considering the combination of both individuals directly and non-directly employed by the Queensland racing industry more than 68,130 people participate in our great industry. Such a large number of Queenslanders play an active role in Queensland racing and provide a lucrative potential customer base.

ROCKHAMPTON

TOWNSVILLE

CAIRNS

GREYHOUND RACING - SOUTH EAST QUEENSLAND INSET

IPSWICH

ALBION PARK

CAPALABAGOLD COAST

HARNESS RACING - SOUTH EAST QUEENSLAND INSET

TOOWOOMBAREDCLIFFE

GOLD COASTMARBURG

ALBION PARK

Leichhardt

Far North Queensland

Capricornia

Eastern Downs

Central West

Downs

North West Queensland

3

5

67

8

4

12

ALPHALONGREACH

ILFRACOMBE

BLACKALL

TAMBO

BARCALDINE

ARAMAC

MUTTABURRA

HUGHENDEN

STAMFORD

CORFIELD

PENTLAND

PRAIRIE

CHARTERS TOWERS

MAREEBA

ATHERTON

MOUNT GARNET

GORDONVALE

INNISFAIL

INGHAM

BOWEN

HOME HILL

MORANBAH

MIDDLEMOUNT

AUGATHELLA

CHARLEVILLE

CUNNAMULLA

NOORAMA

WYANDRA

ST. GEORGE

GOONDIWINDITALWOOD

FLINTON

BIRDSVILLEBETOOTA

BEDOURIE

JUNDAH

ISISFORD

WINTON

BOULIA

MCKINLAY

CLONCURRY

GREGORY DOWNS

CAMOOWEAL

EINASLEIGH

OAK PARKEWAN

JULIA CREEKRICHMOND

MAXWELTONMOUNT ISA

QUILPIE

MORVEN

MITCHELL

INJUNE

WANDOAN

TAROOM

ROMA MILES

MONTO

THANGOOL

CALLIOPE

MT PERRYEIDSVOLD

BUNDABERG

GYMPIEWONDAI

CHINCHILLAWARRA

JANDOWAE

TOOWOOMBAOAKEY

BELL

DALBYTARA

WARWICK

CLIFTON

GATTON

BEAUDESERT

BRISBANE

GOLD COASTIPSWICH

ESK

MARBURG

KILCOYNANANGO

BURRANDOWAN

KUMBIA

STANTHORPE

TEXAS

GAYNDAH

YEPPOON

GLADSTONE

DINGO

BLUFFEMERALD

CLERMONT

TWIN HILLSOAKLEY

TOWER HILL

SPRINGSURE

MACKAY

LAURA COOKTOWN

SURATCALOUNDRA

8 Far North Queensland

Regional Club

TAB Club

7 North West Queensland

6 Leichhardt

5 Central West

4 Capricornia

3 Downs

2 Eastern Downs

1 South East Queensland

LEGENDDistricts

Greyhound, Harness and Throughbred

Greyhound & Throughbred

Thoroughbred Clubs

Multiple Code Locations

Harness & Throughbred

Non TAB Club & Greyhound

CLUB LOCATIONSALL CODES

Industry participation

Over 133 clubs are licenced to conduct racing in Queensland. From Laura in the Far North, Birdsville in the West and Gold Coast in the South, Queensland’s racing industry reached far and wide.

6 2014 | QUEENSLAND RACE WAGERING LICENCE

In the 2012/13 financial year a total over 1,575 race meetings were held in Queensland. Of these 1,141 were conducted with at TAB status.

Over $109 Million was distributed in prizemoney during the 2012/13 financial year.

RACING & PRIZEMONEY

Queensland race meeting comparison

Queensland race comparison

Prizemoney paid out

7QUEENSLAND RACE WAGERING LICENCE | 2014

Racing Queensland, working with the Queensland State government, aim to progress a framework for the commercial terms of the licence for issue July 1, 2014 in the coming months.

Racing Queensland is seeking submissions for consideration. Consideration will be given to all options presented including sole and multiple operator arrangements.

Racing Queensland is seeking submissions that will foster a more prosperous racing industry and ensures that total wagering returns are no worse than those currently received.

Submissions should detail your organisations vision for the following;

• Proposed Financial framework of the proposal including but not limited to;

• Financial capability

• Licence Fees

SUBMISSIONS

• Incentive Payments

• Marketing Investment

• Capital Expenditure

• Forecasts

• Agent commissions

• A detailed vision for wagering growth including innovation, customer development and retention, product development and promotion.

Consideration will be given to sole and multi-operator models however organisations should clearly define the nature of their vision particularly with regard to multi-operator proposals.

A robust distribution network will be a key requirement for the success of operators. As such organisations will need to provide detailed information around the technology platform to be used, rollout strategy, logistics and customer interface.

Your concepts for consideration are welcomed prior to the Expression of Interest deadline on February 28, 2014.

For further information please contact Racing Queensland on 07 3869 9777 or email info@racingqueensland.com.au.

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CONTACT USRacecourse Road, Deagon Q 4017

PO Box 63 Sandgate Q 4017

T 07 3869 9777

F 07 3269 6404

E info@racingqueensland.com.au

www.racingqueensland.com.au

1. This document is an invitation for your organisation to provide a submission. It is not to be construed, interpreted or relied upon as an offer capable of acceptance by any person, nor as creating any form of contract or other form of understanding in any event.

2. Your organisation must not rely on the information contained or referred to in this document. You must make your own independent investigations of the information contained in or referred to in the document, and make your own appraisal of the opportunity to provide a submission. You should obtain your own independent legal, financial, tax and other advice in relation to the information contained in this document.

3. In providing a submission in response to this document, your organisation warrants that it has relied entirely upon its own inquiries and investigations in respect of the submission made.

4. Without limiting any of its rights, Racing Queensland may at any time in its absolute discretion:

a. change the whole or any part of the expression of interest process;

b. invite additional persons to register their interest as part of this expression of interest process; and

c. exclude or otherwise disentitle any recipient from participating in the expression of interest process,

DISCLAIMER

and your organisation will have no claim against Racing Queensland (or its related entities) or advisers in connection with the exercise of, or failure to exercise, any such right. Racing Queensland does not owe any duty or obligation whatsoever to you in respect of the expression of interest process.