A government-funded review of the Northern Territory’s racing industry is being conducted by a consultancy firm that also represents Australia’s largest gambling company, sparking questions about its integrity.<\/p>\n
In December, the Department of Tourism and Hospitality awarded a $110,000 contract to conduct the review to consultancy firm AP2 Advisory \u2014 a company that also represents Tabcorp.<\/p>\n
Racing Minister Marie-Clare Boothby said the review was to ensure the industry had a “strong and sustainable future” and to “maximise the economic and lifestyle contributions of the industry”.\u00a0<\/p>\n
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Marie-Clare Boothby says the review will cover the entire industry. (ABC News: Pete Garnish)<\/p>\n
AP2 Advisory principal Josh Blanksby told the ABC he was “solely” conducting the review on behalf of his company.<\/p>\n
“Two of AP2’s principals \u2014 Paul Bittar and Bronte Campbell \u2014 are engaged by Tabcorp on an exclusive basis,” the former Melbourne Racing Club chief executive said.<\/p>\n
“I am not engaged by Tabcorp.”<\/p>\n
Mr Blanksby said the review “covered all aspects” of NT racing industry funding.<\/p>\n
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Tabcorp holds the NT’s exclusive retail betting licence. (ABC News: Danielle Bonica)<\/p>\n
Through its Ubet NT brand, Tabcorp is the exclusive rights holder of the NT’s retail betting licence, meaning it is the only company allowed to deliver betting services through retail outlets, pubs and clubs.<\/p>\n
Ubet also exclusively operates a totalisator in the territory \u2014 a pool betting system where commission is taken from money wagered, before dividends are distributed to winning punters.<\/p>\n
The NT’s retail betting and totalisator licence was secured for 20 years by Tabcorp in 2015.<\/p>\n
The company also owns television network Sky Racing, which holds media rights to broadcast races from both Darwin and Alice Springs.<\/p>\n
Conflicts of interest considered by government<\/p>\n
Gambling researcher associate professor Charles Livingstone said AP2 Advisory had a conflict of interest in undertaking the review.<\/p>\n
“Tabcorp clearly has an interest in getting the best possible price [for NT licences and rights],” he said.<\/p>\n
“The company that has been asked to review this process is very closely linked to Tabcorp.<\/p>\n
“I’m not suggesting that they would do anything other than what is in the interest of their clients, but unfortunately they have clients pulling in opposite directions.”<\/p>\n
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Charles Livingstone says AP2 Advisory has a conflict on interest undertaking the review. (ABC News: William Howard)<\/p>\n
The NT Executive Director of Liquor, Racing and Gaming, Mel Garde, said AP2 Advisory and Mr Blanksby had submitted a joint quote to conduct the review.<\/p>\n
“Their credentials were reviewed, including conflicts of interest,” she said.<\/p>\n
“Licensing NT was aware of and considered AP2 Advisory’s client Tabcorp, and others including government bodies, before any work was undertaken on the review.<\/p>\n
“The review acknowledges the role of Tabcorp and other wagering service operators as key sources of revenue for the government and the NT racing industry.”<\/p>\n
Mr Blanksby said “AP2 at all times abided by its conflict-of-interest management policy which has been provided to both the Northern Territory government and Tabcorp”.<\/p>\n
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The NT has two main racetracks, in Darwin and Alice Springs. (ABC News: Pete Garnish\u00a0)<\/p>\n
Why does it matter?<\/p>\n
Dr Livingstone said the future of the NT’s racing industry relied on obtaining the best possible deals with companies such as Tabcorp.<\/p>\n
“[Tabcorp’s] got a very unique position and it’s in a very strong position to \u2026 restrict the flow of revenue that the [racing industry] might require,” he said.<\/p>\n
“Dependency on one \u2026 of the big providers means that [the government] becomes subject to the decisions they make and \u2026 ends up being a price taker not a price maker.”<\/p>\n
NT Opposition Leader Selena Uibo said Territory Labor held “serious concerns about the integrity and independence” of the review.<\/p>\n