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 Waterhouses in court bid to protect profits from phone betting 

Waterhouses in court bid to protect profits from phone betting

11 Sep, 2008 01:00 AM

AUSTRALIA'S highest-profile racing family is challenging Racing NSW through the Supreme Court to stop the authority taking a cut of its profits under new laws for bookmakers and totes.

Bookmakers Bill and Tom Waterhouse argued yesterday that the laws, which are designed to raise revenue for the racing industry and prevent money laundering, should not apply to their telephone betting agency.

The laws criminalise the publication of horse names and racing fields without permission from Racing NSW, which charges bookmakers 1.5 per cent of their turnover once they have registered to publish. They are expected to raise between $25 million and $30m.

But the grandfather and grandson argued yesterday that the agency should be exempt because technically, it does not publish race details. Grandson Tom Waterhouse said most people who ring up to place bets already know the names of their horses and do not need the agency to list the runners in each race.

Justice George Palmer said the laws raised the "peculiar" prospect that a betting agency boss would be acting illegally if he provided his staff with a copy of a newspaper form guide, since that would constitute publication.

The laws could also make it illegal for a phone betting agency to tell a punter that a horse had been scratched, because it would effectively be publishing the scratching information.

But Tom Hughes QC, acting for the Waterhouse family, said if someone tried to place a bet on a horse they were unaware had been scratched, Multibet could simply refuse to take the bet, and was not obliged to give them a reason.

Racing NSW chief executive Peter V'landys said outside the court that requiring agencies to register would protect the industry from money laundering by organised crime gangs, and that the extra revenue raised would ensure that the agencies which profited from the industry also contributed to it.

The Waterhouses would pay about $50,000 per year, he estimated. "These guys are buying Mercedes Benzes and Porsches and buying $1m homes," V'landys said. "It's not worth that much to them - that's why we're surprised they're taking it on."

If bookmakers tried to evade the laws by moving offshore, the racing authority would lobby the Federal Government to make it illegal for banks and credit card companies to process offshore gaming transactions, V'Landys said. "We want payment towards those people who are putting the effort in.

"Why should a bookmaker be earning all this money when there's a stationhand getting $35,000 a year? I think any person would say that's unfair."

Justice Palmer has reserved his judgment.

Meanwhile, Rosehill trainer Tim Martin's hopes of winning a second group 1 with star sprinter Typhoon Zed in Saturday's Manikato Stakes at Moonee Valley took a blow yesterday when the gelding drew gate 13 of 18.

"I couldn't be happier with the horse, but the draw is going to make things a bit tougher than I had hoped," Martin said. "A lot of the leading chances in the Manikato drew bad, so that might just even the race up … Some would say the horse is a risk at the 1200m, but he did run it pretty strongly in the Ramornie."

Perth galloper Marasco was not an acceptor for the Manikato after suffering a minor injury en route to Melbourne, while Moonee Valley specialist Kaphero and group 1 winning mare Absolut Glam were installed equal favourites at $4 with TAB Sportsbet to win the first group 1 of the season.

Mick Price's last-start winner Bel Mer, to be ridden by Danny Nikolic, is at $11 after drawing the outside alley.

Darley-retained rider Kerrin McEvoy hit form when riding a double at Canterbury yesterday, while Nikolic won the opening event on the Jack Denham-trained first starter Metal Bender.

But it was the country-based pair of Gundagai trainer David Blundell and Wodonga jockey Brendan Ward who stole the show. The duo combined for a double, with the unbeaten Ab Fab scoring in the Proton Cabs Handicap and Monterey Road overcoming a wide gate to win the last.

Blundell said he considered Ward to be in the same class as riders such as Peter Robl, who is riding full-time in Sydney, having started out as a predominantly country-based jockey.

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