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Vic Wagering Review Confirms Gross Revenue Model
The final report of the Victorian Wagering Review (conducted by PricewaterhouseCoopers & chaired by Peter Yates) was presented to the Board of Racing Victoria & "reaffirmed the methodology of charging based on a percentage of gross revenue rather than turnover & recommended an increase to the current product fee from 10% to 13% of gross revenue & from 15% to 18% during the Spring Racing Carnival months of October & November". The Board noted: "A key feature of the new model will be the introduction of a minimum payment of 0.5% of turnover per month. In any month where the percentage of gross revenue of any wagering service provider is less than 0.5% of that provider's turnover, a minimum fee of 0.5% of turnover will apply." The Board confirmed it "has accepted the recommendations of the final report in principle & intends to implement the new regime from August 2012, to coincide with the commencement of the new Victorian wagering Licence". RV chief executive Rob Hines noted: " The recommended fee structure is likely to return over $63 million per annum." Hines also said: "The implementation of the new product fee regime could still be impacted by the outcome of the High Court Challenge to NSW Race Fields legislation & the issuing of the new wagering licence in Victoria, but both of these matters are expected to be resolved long before the new fees are scheduled to be implemented."