TAB bonus for racing industry

WA racing's governing body has backed the long-term viability of the TAB after yesterday revealing an extra $10.3 million funding bonanza for the local industry.

Racing and Wagering WA boss Richard Burt said a projected $60 million increase in TAB turnover this financial year had resulted in a $136.4 million distribution for the State's three racing codes - gallops, pacing and greyhounds - up from $126.1 million last year. The result comes after last week's State Government decision to put the TAB up for sale.

Mr Burt also said the Government would get almost $43 million in turnover tax, about $2.5 million in payroll tax and the Department of Sport and Recreation would get funding of nearly $4.5 million.

The Federal Government would also receive $29 million in GST, up $2 million on last year.

He said the strong performance of the TAB had led to RWWA setting a $150 million distribution target by 2018-19.

"It's been a huge performance this year and the business is trading quite nicely," Mr Burt said.

"There has been a lot of growth in the wagering market even though the economy is so down and flat due to the drop-off in mining. Putting aside the politics, I think the business is in good hands and running well and we just want to continue the performance of that. It's an extremely positive outcome for the racing industry based on a solid TAB performance."

Mr Burt said the financial result was $14 million better than expected, covering a $14 million infrastructure program at the Cannington greyhound track.

It had been driven by stronger fixed-odds betting on sports and racing and increased competitiveness through mobile and digital wagering. RWWA will also spend $25 million on business running costs and about $17 million in grants and subsidies.

Racing and Gaming Minister Colin Holt said the distribution was "broadly in line" with the strategic development plan submitted by RWWA to the Government and included a one-off $1.8 million for harness racing to host this year's Inter Dominion Championships at Gloucester Park in November.

"Consideration on annual distributions to the racing industry will form part of the due diligence process for any sale of the TAB," Mr Holt said.