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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-04-08 Daily Xml
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AUTHORISED BETTING OPERATIONS (TRADE PRACTICES EXEMPTION) AMENDMENT BILL

Second Reading

Second reading.

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (12:32): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

This Bill seeks to make a technical amendment to the Authorised Betting Operations Act 2000 to provide an exemption pursuant to section 51(1) of the Trade Practices Act 1974 (Commonwealth) for the conduct of South Australian Racing Controlling Authorities in the entering into and the giving effect to the Contribution and Integrity Agreements that form the core of the new regulatory arrangements introduced by the Statutes Amendment (Betting Operations) Bill 2008. That Bill was introduced on 24 November 2008 to strengthen integrity and funding arrangements for the racing industry following the High Court's decision in the Betfair case in 2008. The Second Reading Speech to that Bill set out the background to the Betfair case.

The Statutes Amendment (Betting Operations) Bill 2008 itself contained a Trade Practices Act exemption, but at the time that Bill was being prepared the exact details of the form of the arrangements that the Racing Controlling Authorities were likely to enter into were not fully known. Given the highly charged litigation environment surrounding racing and wagering arrangements at the present time, it is prudent and appropriate for Parliament to provide a comprehensive Trade Practices Act exemption for the Racing Controlling Authorities who, after all, are only complying with the regulatory requirements imposed on them by Parliament.

On the Government's assessment there is no significant competition detriment here. The outcome that this Government seeks, and the outcome that is also being sought by all State Governments that have a significant racing industry, could be achieved by a scheme that had a greater degree of Government intervention. We have chosen to allow the industry to regulate itself, as have the other States. However, because of its universal application to all activities in trade or commerce, the Trade Practices Act has an impact on this regulatory activity that potentially creates a litigation exposure for Racing Controlling Authorities and their administrative and collection agents. To avoid that, it is proposed to utilise the 'power to exempt' granted to State Parliaments by section 51 of the Trade Practices Act.

The parties that are exempted are the South Australian Racing Controlling Authorities and Racing SA, which is a company formed by the three Racing Controlling Authorities, and which has functions under the proposed arrangements including that of administration and collection agent for the Controlling Authorities. The exemption allows the possibility of another agent, possibly on a national basis, carrying out that role in the future.

The exemption focuses on the entering into, and the giving effect to, contracts arrangements and understandings that contain provisions relating to, first: the matters required to be included in Integrity and Contribution Agreements by section 62E of the Authorised Betting Operations Act. Existing section 62E(11) deals with that matter. Secondly, the exemption deals with collective arrangements on the part of the Racing Controlling Authorities, Racing SA or another agent, or, any combination of those persons and bodies. The exemption is structured so as to deal comprehensively with the matrix of operations of a collective nature that might attract section 45 of the Trade Practices Act:

Entering into, and giving effect to, arrangements or understandings by the Racing Controlling Authorities and Racing SA, or any other agent, that are preliminary to the negotiations to enter into collective integrity and contribution agreements with wagering operators; or are preliminary to any action to give effect to the resultant collective integrity and contribution agreements.

The actual entering into, and the giving effect to, integrity and contribution agreements with a wagering operator by a Racing Controlling Authority and by Racing SA or another agent, where the agreement is of a collective nature in that it also includes other Racing Controlling Authorities, Racing SA or another agent.

Entering into, and giving effect to, integrity and contribution agreements by a Racing Controlling Authority, where the Racing Controlling Authority acts alone.

I note that this amendment will commence at the same time as the other amendments to the Authorised Betting Operations Act introduced by the Statutes Amendment (Betting Operations) Bill 2008, that is, on 1 March 2009. Further, the Trade Practices Act exemption applies to conduct by those persons who are exempted, whether that conduct was undertaken before or after the commencement of this amendment. This retrospective operation is necessary so as to provide protection to Racing Controlling Authorities and Racing SA who have had to start their consideration of these issues and putting arrangements in place as early as possible to deal with the problems that already exist in the racing industry flowing from the Betfair decision.

The Government and racing industry appreciates the willingness of Members to have initially considered the Statutes Amendment (Betting Operations) Act 2008 with the urgency necessitated by actions in other States following the Betfair High Court decision. The Government looks forward to this Parliament working together to provide the racing industry with greater certainty.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal. Commencement is retrospective so that the trade practices exemption operates from the same time as the amendments to the Authorised Betting Operations Act 2000 relating to integrity and contribution agreements effected by the Statutes Amendment (Betting Operations) Act 2008 came into operation.

Part 2—Amendment of Authorised Betting Operations Act 2000

4—Amendment of section 62E—Integrity agreements and contribution agreements

This clause provides a trade practices exemption designed to specifically authorise 3 different categories of conduct:

entering into or giving effect to an agreement by racing controlling authorities, Racing SA Pty Ltd (ACN 095 660 058) and any other agents of racing controlling authorities (or any combination of those persons and bodies) following negotiations conducted for the purposes of a racing controlling authority entering into, giving effect to or enforcing an integrity agreement or contribution agreement;

entering into, giving effect to or enforcing an integrity agreement or contribution agreement by racing controlling authorities, Racing SA Pty Ltd (ACN 095 660 058), any other agents of racing controlling authorities (or any combination of those persons and bodies) acting collectively;

entering into, giving effect to or enforcing an integrity agreement or contribution agreement by a racing controlling authority acting alone.

The first category is aimed specifically at the preliminary arrangements and understandings that the racing controlling authorities may enter before they negotiate an integrity agreement or contribution agreement with a betting operator.

Debate adjourned on motion of Hon. J.M.A. Lensink.

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