Dr Napthine said the new agreement would take affect in August next year when the current Victorian Wagering and Betting Licence expired.
“I would like to congratulate Tabcorp and the VRI for negotiating an outcome that is fair to all parties,” Dr Napthine said.
“This a fantastic Christmas present for all Victorian racing codes who stand to benefit from the significant returns and new opportunities this agreement will provide.
“The new agreement will deliver increased revenue in real terms to the racing industry above the current arrangement. This means better infrastructure, enhanced integrity systems and increased prizemoney for all Victorian thoroughbred, harness and greyhound racing.
“All of these benefits translate to an even more exciting Victorian racing industry, which is already a world leader in terms of the quality of racing and spectator facilities,” Dr Napthine said.
Dr Napthine said today’s agreement will see the VRI and Tabcorp share the profits from these ventures on a 50/50 basis and continue their longstanding and successful partnership for a further 12 years.
“Racing is a major industry in Victoria, providing more than $2 billion to the state economy and generating 70,000 jobs with about half of these located in regional and rural areas,” Dr Napthine said.
“This agreement will ensure Victorian racing continues to grow and flourish and maintain its position as the most exciting and successful racing industry in Australia,” Dr Napthine said.
In July the Victorian Coalition Government awarded the new Victorian Wagering and Betting Licence to Tabcorp, who made a binding offer to the VRI that any new agreement would be no less favourable than the current arrangements.
The licence allows Tabcorp to conduct pari-mutual and fixed odds betting, operate the only off-course retail network in Victoria, establish and operate a Betting Exchange in Victoria to support account based betting and conduct approved simulated racing events.