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Posted: 2017-07-23 05:12:49

The Victorian racing television channel's multimillion-dollar play for South Australian racing could hit a hurdle from day one.

Racing.com is paying a reported $6 million a year for the rights to broadcast South Australian racing. The seven-year deal is a windfall for South Australian racing, which has never received such a sum for its broadcast rights. The South Australian coverage on racing.com commences in August.

However, racing.com's betting broadcast partners, Sportsbet and CrownBet, have been reluctant to promote South Australian racing since that state introduced a new betting tax.

The point of consumption tax, introduced this month, charges bookmakers taking bets from South Australians 15 per cent on their net wagering revenue.

Sportsbet and CrownBet have since downgraded their promotion of South Australian racing. On Saturday, Morphettville was placed last on their list of more than a dozen Australian race meetings.

A six-race card from Carnarvon, 900 kilometres north of Perth, and worth $66,000 in prizemoney, was prioritised ahead of Morphettville.

CrownBet has told customers it is "not able to promote SA races due to the government's new tax on wagering operators".

Sportsbet has said the tax punished South Australian punters and is not acceptable.

The Northern Territory-licensed Sportsbet took more than $4.5 billion in bets in Australia in 2016, yet paid just $575,000 in betting taxes.

It is also not known if CrownBet and Sportsbet will sublicense South Australian race vision on their digital platforms from racing.com. If not, that will further damage racing.com's business case to secure South Australian racing.

The racing.com strategy to acquire South Australia's media rights has been questioned as to the benefit Victorian racing will receive, given Victoria does not get any financial return from betting on South Australian racing by corporate bookmakers.

The multimillion-dollar broadcast windfall for South Australian racing is also tipped to come at a cost to Victorian clubs whose exposure will be diluted. Victoria's race clubs will have to share airtime with South Australian meetings, despite financially propping up racing.com.

Days like Sunday October 29 are shaping up as problematic with Hamilton, Sale and Gawler staging their annual cup meetings. Each will respectively expect the promised showcase coverage of their marquee day.

Racing.com is also introducing changes to its presentation which will mean fewer live broadcasts from racetracks and more coverage from its studios. The move will rein in racing.com's productions expenses.

Racing.com is a joint venture between Racing Victoria and Seven West Media and was set up to broaden the reach of Victorian thoroughbred racing.

Its launch in 2015 was heralded by then RV chairman David Moodie as a "new era" for Victorian racing.

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