Gaming group Tabcorp wants a more level playing field in relation to foreign companies taking bets from Australian residents.
Tabcorp chairman Paula Dwyer says the Australian racing industry continues to face challenges from within Australia and from abroad.
"A key area we believe needs to be addressed is the rise of unlicensed offshore betting on Australian racing and sport," Ms Dwyer told shareholders at Tabcorp's annual general meeting in Sydney on Tuesday.
"It is only right and fair for consumers, sporting codes and taxpayers that all operators are subject to the same licence obligations."
Ms Dwyer said as much as 14 per cent of betting by Australian-based customers was conducted with operators who were not licensed in Australia.
She said the fact that these foreign operators were not regulated to Australian standards posed significant risks to consumer protection and to the integrity of sport and racing.
Furthermore, revenue that would otherwise go to Australian governments was instead going to unlicensed offshore operators.
Ms Dwyer said France had prohibited unlicensed offshore operators from taking bets from French residents, and similar prohibitions were about to be put in place in the United Kingdom.
"Tabcorp's view is that a similarly powerful response is needed in Australia, and we are in active dialogue with the federal government on this issue," Ms Dwyer said.
She said Tabcorp also wanted harmonisation of licence conditions across all states and territories in Australia to eliminate variability in the contributions made by wagering operators to the racing industry and to governments.
And she urged reform on the difference paid in wagering taxes by various operators.
She sat that in fiscal 2014, Tabcorp's NSW and Victorian TAB operations had turnover of about $11 billion and paid $212 million in state wagering taxes.
In contrast, licensed corporate bookmakers in the Northern Territory had a turnover of $8 billion on racing and sport but paid just $2.7 million in wagering taxes.
A spokesperson for Social Services Minister Kevin Andrews said the government had made a commitment before the last federal election to set up a gambling industry advisory council, and that council would be established by the end of the year.
The spokesperson said that through the advisory council, the government would work closely with industry on matters of regulation.
Tabcorp chief executive David Attenborough told shareholders that the company had enjoyed a good start to the 2014/2015 financial year.
Revenue in the first three months of the financial year rose 6.6 per cent to $537.4 million.
"We're now looking forward to a successful Spring Racing Carnival and an exciting Melbourne Cup week, beginning with Derby Day this Saturday," Mr Attenborough said.
Ms Dwyer also said Tabcorp's decision to lift its dividend payout ratio to shareholders to 90 per cent from 80 per cent of net profit in fiscal 2015 would continue to be reviewed and may even be increased if the company is able to do so.
Shares in Tabcorp were four cents higher at $4.03.
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