Tabcorp has been successful in winning a bid to secure the new 12-year wagering and betting licence in Victoria from August next year.

The news brings about a feeling of great relief from the Victorian racing industry, which relies heavily on the revenue they receive under the current licencing agreement.

Had Tabcorp not won the new bid, there was concern that Racing Victoria would not be able to sustain the current prize money levels.

Racing Minister Denis Napthine assured owners and trainers that the new agreement reached would allow current prize money standards to be maintained, with a continuing possibility for increases.

“It is up to the three racing codes to distribute the money but the provision is certainly there for greater prize money,” Napthine said.

“There is no reason why prize money should not increase.”

Tabcorp chief executive David Attenborough feels that the new deal will be of great benefit to all parties involved.

“Now the government is better off and the racing industry is better off,” Mr Attenborough said.

”We’ve now effectively purchased a new business for the next 12 years.

”The difference is, it’s a business we know well, it is a business that is trading so we’re pretty certain how it’s going to trade in the new world.”

Mr Attenborough said that Tabcorp was not looking to initiate its own betting exchange, despite the fact that a provision allows it.

“We have always had concerns about the integrity of betting exchanges and we are yet to see a betting exchange operate successfully in Victoria,” Attenborough said.

Victoria Racing Club (VRC) chief executive Dale Monteith said he was happy to continue the relationship between his company and Victorian racing.

“I was present at the birth of Tabcorp in 1994, so in that sense it’s great to see the relationship continue,” Monteith said.

“We have been assured that Victorian racing will be no worse off, and for racing’s confidence going forward that is a good thing.”

Racing will receive a minimum combined amount of $337 million in 2013 and $342 million in 2014 under the new contract.