Racing Victoria changes fee policy, CEO quits

Racing Victoria announced their race fields fee policy for FY17 last Friday, which includes two potential changes that could have a slight impact on the earnings of Tabcorp and Tatts Group, according to a note from CLSA.

The two changes refer to an increase in price paid for tote bets, which will impact the cost base for Tabcorp and Tatts Group, and the price paid for tote derivative products, which increases the fees paid by corporate bookmakers.

“Overall we would rate these changes a slight negative for TAH (and TTS very slight). The negative impact of higher fees is partly offset by the more level playing field on pricing for TAH and TTS’s competitors.”

However, the brokerage says the change will likely not happen this year.

According to CLSA, the changes will be decided on at the next board meeting on 30 June.

In related news, Racing Victoria’s chief executive Bernard Saundry has announced his departure last Thursday, local media reports.

The unexpected decision was announced during the monthly Racing Victoria board meeting, Saundry said he will remain at the post until the end of the year.

“I have made the decision that now is an appropriate time for change both for the organisation and for my family and I,” Saundry said on Thursday.