Leading Grafton bookmaker Matt Dougherty is an example of the pressure country bookmakers in NSW are facing to survive.

Dougherty, a member of one of the most famous bookmaking dynasties in NSW racing, is planning to retire at the end of the current Grafton Cup carnival because of the financial burden imposed on bookmakers by taxes and other overheads.

“Unless the situation changes this is likely to be my last carnival as a bookmaker. I've had enough,” Dougherty said.

Justice Nye Perram's Federal Court judgement on the Racing NSW Race Fields Legislation case forced all NSW bookmakers to begin paying 1.5 percent levy on turnover from July 1.

The judgement removed a $5 million threshold clause that had protected the on course bookmaker from paying the levy.

Country bookmakers must also pay race clubs a 0.33 per cent fee for fielding on race days and another 0.5 per cent if they operate on interstate venues.

While some major metropolitan and provincial clubs have waived the stand fees most country clubs, many facing big annual losses, must continue to apply the stand levy as it is a vital part of their revenue.

However Dougherty, representing a family of bookmakers that have been fielding on NSW racecourses for more than a century, is speaking for many of his country counterparts when he says the 1.5 percent turnover fee has made it unviable for him to continue with a business that has been his life.

“The 1.5 per cent is the difference between me continuing or ceasing to operate,” said Grafton-based Dougherty.

“We're now paying what is effectively two per cent turnover tax.

“It's just not viable anymore. This is going to decimate country bookmakers.

“It's the little guys, not the corporates, who are detrimentally affected.”

The Dougherty clan has been synonymous with bookmaking in the Clarence Valley since the early 1900s. Matt Dougherty followed his great grandfather, grandfather and father into the bookmaking business along with uncles, brothers and cousins.

Matt's father Bill Dougherty, now retired from bookmaking, agrees with his son's view on the turnover fees.

“It continues the hastening decline in bookmakers,” he said.

“Unless there is a substantial turnaround, they're gone. That's terribly disappointing.”

The NSW Bookmakers Co-Operative is negotiating with country clubs for the removal of the stand fees levy but the clubs are unwilling to let go of this vital revenue.

Clarence River Jockey Club chairman Bob Pavitt, a member of the RNSW Country board, said the commission paid by bookmakers is vital to every club country.

“It means a lot of money overall to the club, in our case commission on $6 million overall turnover, the majority coming over July,” Pavitt said.

“If it's dropped, it's the clubs that suffer. Some country clubs are already in a bad financial state and others are getting close to bad.

“Clubs lost substantially when the fee was dropped from one per cent. Those monies are vital to run the show.”

Racing NSW Country chairman Gordon Lindley said his board was powerless to direct clubs to waive stand fees.

“Legally, that is a matter for individual clubs or associations,” he said.

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