Prior to determining whether the privatisation of the WATAB would benefit the racing industry the following matters require consideration.

Wagering Licence1. What is the model for the privatisation of the TAB?

a. Joint Venture model (Victorian Model)… flexible funding arrangement with profit sharing

b. Contractual model… need to accurately understand funding needs so they are written in the contract

c. Separation Model… annual submission to government for funding each yeard. Racing Industry Model… separation of government from industry

2. Will virtual gambling be included in the licence to attract a higher return from the sale?a. Tracksideb. Kenoc. Exchange bettingd. Other wagering products available to NT based betting agencies

3. What will industry receive (from either the purchaser or government)?a. Singular lump sum for infrastructure at start of contractb. Annual licencing fee (to fund infrastructure)c. Increase in race fields commissionsd. Sponsorship guarantees to replace current Tabtouch commitments

4. What are the impact on revenues caused by changing from a statutory authority to a private company as a result of different treatments for wagering tax, GST, unclaimed dividends, fractions and other subsidies

5. What are the selection criteria for determining the best sale outcomea. Return to Government or Return to industryb. Prior industry experience or media player in partnership

6. If the industry is to be “no worse off”, how much is that?a. Current Distribution?b. A distribution that allows growth in racing product

Governance Structures7. Will RWWA or the DRGL manage the licence (and collect fees)?8. What is the model for Racing Governance?

a. Will it still be a statutory Authority with Government oversight representing industry participants and stakeholders?

b. Will there be a singular governance body representing the principle racing authority for all three codes?

c. Will there be separate governance structure for each code ?9. Should the breeding industry continue to be subsidised by wagering incomes?

Racing Product10. Who determines the racing program and funding distributions in WA?

a. Highly impacted by decision on governance structuresb. Will there be an equalisation calculation to the distribution or will clubs only receive

amounts their own products contribute in product fees?11. What does the industry have to provide?

a. Is the new licensee guaranteed access to on-course wagering or do clubs have the freedom to choose the best on-course wagering partner?

b. Are clubs committed to sponsorship arrangements only with the new licensee or can they seek sponsorship from other betting companies

12. What is the strategy to increase the quantity and quality of the racing product so as to increase revenues under a product fee basis

13. Who will fund ongoing infrastructure needsa. From governmentb. From industry fundsc. From the licence fee

Risk Management14. Without privatisation and in a consolidating gambling market, can the WATAB maintain its

performance and market share to the extent it can continue to fund the racing industry?a. All growth in WATAB revenues are in response to increased wagering on Eastern

States and overseas product