BILL PROVIDES FOR 20 ADDITIONAL ’TOTE" PERMITS

Wanganui Chronicle, 22 September 1950, Page 5

BILL PROVIDES FOR 20 ADDITIONAL ’TOTE" PERMITS

WELLINGTON, Last Night (PA)— Twenty additional totalisator permits are to be granted undet the Gaming Amendment Bill, which was introduced in the House of Representatives tonight. They are designed to cater for increased population in the North Island and to eliminate illegal bookmaking on present non-totalisator meetings. The new permits will be allocated after consultation with the Racing and Trotting Conferences. They are in addition to the 20 fresh permits which were issued earlier this

Provision is made for the Totalisator Agency Board to receive 71 per cent of investments n|ade through totalisator agencies under the offcourse betting scheme. This is the rate of commission at. present deducted by racing clubs from investments made on the totalisator.

In accordance with arrangements for financing the proposals for offcourse betting, the Bill authorises a temporary levy of a further 15 per cent to be deducted by racing clubs from all totalisator investments before paying dividends. The levy is to operate for five years from November 1, and the board will use the proceeds solely for capital expenditure, to meet operating losses and to create reserve funds for those purposes. This income is not subject to Income tax or social security tax. The Bill repeals provisions of the Gaming Amendment Act, 1949. which authorised the Minister of Finance to make or guarantee advances to the board for preliminary expenses. This section implements the policy of the present Government that the scheme must stand on its own feet. The effect of off-course betting on contracts between racing clubs and totalisator operators is also recognised in the legislation. In the case of contracts in force on the passing of the Bill, where remuneration is based on totalisator turnover, or on any amount deducted or retained by the club, off-course investments are not to be taken into account unless the contract expressly says so. . A contract cannot be varied or terminated because of the off-course scheme alone. In both existing and future contracts the board may make a contribution toward extra payments made by clubs to meet operators additional expenses. Explaining the main purposes ot the measure the Minister of Internal Affairs (Mr.' Bodkin) said that last year the previous Minister had recognised the necessity for granting additional racing and trotting permits. The whole object of the off-course betting scheme was to eliminate the illegal bookmaker, and there were a number of non-totalisator meetings which provided an open field for the bookmaker. The police were very firm in stating that if bookmakers were to be eliminated —and they were confifldent it could be done—adequate facilities must be given for legal betting. One of the picnic clubs in the Aucklfnd province had operated an equalisator which put through £lO,000 in one day. That would repre-

sent only one-third of the total amount spent on betting. Replying to the Deputy-Leader of the Opposition (Mr. Nash), the Minister said that the full taxation would continue to be levied on clubs and the 11 per cent, levy would be extra. No provision was made in the Bill for new permits to apply only to Saturday That could be taken into consideration. Only in special circumstances had mid-week racing been permitted. _