An email from Racing Victoria and market analysts speculating about the future of race fields fees may have contributed to a sharp fall in Tabcorp shares in recent days.
Racing Victoria is adopting a new policy on race field fees, which are paid by bookmakers to official racing bodies so they can use information about the names and numbers of thoroughbred horses due to race.
Tabcorp fears that when the changes go ahead, its profits could suffer.
Its shares dropped about 40 cents between last Wednesday and Friday, sparking a "please explain" letter from the Australian Securities Exchange on Monday.
Tabcorp said that late last Wednesday, Racing Victoria sent an email to "undisclosed recipients", which was received by Tabcorp, stating that Racing Victoria would consider its race fields policy and fees at a meeting the following day.
Tabcorp also said that research reports on Tabcorp issued by market analysts after the market had closed last Wednesday referred to possible race field fee hikes by racing industry bodies nationally, and in particular NSW and Victoria.
The research reports downgraded their recommendations on holding Tabcorp shares.
"The release of these reports and the email to `undisclosed recipients' referred to above from Racing Victoria may have contributed to heightened speculation about possible changes to race fields fees and any associated impact on Tabcorp, and as a consequence may have contributed to trading in Tabcorp shares on May 15, 2014," Tabcorp said in a statement.
Racing Victoria announced last week that it would adopt a new race fields policy that will differentiate between traditional tote betting and non-traditional betting, such as fixed odds, exchange and derivative betting.
The new policy, which means that bookmakers will have to pay higher fees, will apply after June 30, 2014.
Racing Victoria said the changes to race field fees would ensure that the funding of thoroughbred racing in Victoria grew with the forms of non-traditional betting.
Tabcorp fears if the changes had applied to its turnover on Victorian thoroughbred racing this financial year, its net profit would have been hit by about $4 million, in the absence of any mitigating strategies.
Tabcorp said Racing Victoria was the first major Australian racing industry body to decide on and announce new race field fees.
"Racing industry bodies in other Australian jurisdictions may also announce changes to their models and fees associated with their racing product," Tabcorp said.
Tabcorp's shares fell another nine cents to close at $3.41.
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