Racing: Push for fixed odds growth stuns bookies

New South Wales bookmakers fear extinction should the State Government endorse a push from TAB Limited to permanently expand its fixed odds operation.

The Government permitted the TAB to trial fixed odds betting on all group two, three and listed races from September 1 until June 30.

Racing Minister Grant McBride allowed a further extension of the trial period until the end of this month, at which time he will decide whether to legislate an expansion to TAB Limited's fixed odds.

It has left both parties vigorously lobbying their cases.

Bookmakers believe there will be no incentive to bet with them on track if the same odds are offered by a rival in 2000 agencies across the state as well as over the phone and internet.

TAB Limited said it is only looking for a level playing field against the other TABs.

"The only thing that keeps us going is that we are the sole providers of fixed odds," bookmaker Con Kafataris said.

"To get [fixed odds] people have to access bookmakers by ringing us or going to the track. If the TAB was allowed to get its way it could mean the death knell of bookies."

The NSW Bookmakers' Co-Operative believes 400 small businesses and thousands of jobs are at "grave risk".

Fellow bagman Luke Behrmann fears the legislation allowing increased TAB Fixed Odds could "wipe out half the bookmakers in the Sydney ring".

He said TAB Limited would become another corporate bookmaker and private operators would either be forced to shut down or corporatise in "friendly" territories like the Northern Territory.

"People have to define what they are. A totalizator is not a bookmaker," Behrmann said. "We're not allowed to offer tote odds and yet they want to compete with us on our product."

The search for equality is what is driving TAB Limited's push.

"Our case is based totally on parity, on what the rest of Australia is doing in terms of TAB services to TAB customers," TAB Limited's Peter Fletcher said.

"It seems logical that NSW TAB customers have access to a similar range of fixed odds racing event opportunities."

Fletcher also said TAB statistics show the racing industry will benefit from an increase in revenues.

Racing NSW argues otherwise and has written to McBride expressing concern about the viability of racing should fixed odds be expanded.

"The best form of betting for us is totalizator betting," Racing NSW chief executive Peter V'Landys said.

"We don't want to take the risk that totalizator betting will be cannibalised by having a proliferation of fixed odds betting.

"You have to remember we get five cents in the dollar from totalizator betting. From fixed odds betting we're averaging 1.7 cents in the dollar. So for us to put the show on we need to get the five cents in the dollar."