The Government of New South Wales intends to consult with the wider public on the issues related to potential regulation associated with online gaming and gaming taxes. The authorities are asking for the residents’ opinion on the debate whether the state of New South Wales should or should not make a change in the gaming taxes to target iGaming.
A four-week consultation period, over which gambling operators would be able to share their opinion on the proposed tax, is set to be announced by NSW Treasurer Dominic Perrottet.
For the time being, no specific tax on online gambling and online sports betting operations has been established, with racing and sports betting activities being taxed only at land-based facilities. Mr. Perrottet reminded that online gambling had experienced significant growth over the last few years. He also said that other Australian states and territories had already changed their online gambling tax following the increasing popularity of online betting – an issue that was also being considered in the state of New South Wales.
According to the Treasurer Perrottet, the state’s authorities want a better understanding of the possible effects of the implementation of such a tax. This was the reason why the consultation involving all interested parties has been initiated in the first place.
NSW Government Aimed at Tackling Problem Gambling
Reportedly, an online gambling tax is expected to be established as part of the New South Wales budget. As mentioned above, its amount has still not been set, but it is possible to equal to 15% of operators’ profits or to 2% of their total turnover. The implementation of such tax on iGaming operations is expected to make a contribution of approximately AU$100 million to the state every year.
So far, according to Government records, some representatives from the local racing industry – the National Rugby League (NRL) and Tabcorp – have already met with the Treasurer in order to discuss the proposed taxes.
Apart from the tax regulation of online gambling and online sports betting, local lawmakers have proposed new laws related to tackling possible problem gambling caused by existing regulations. The state of New South Wales is to consider a reduction in the number of pokies allowed in clubs and pubs.
The beginning of the week saw the NSW Government unveiling plans to bring some restrictions to the number of poker machines in high-risk areas. Due to the fact that the local authorities consider some state communities more vulnerable to gambling-related harm, they have made a decision to put cap on the number of pokies to be available in some areas of the state.
As Casino Guardian reported a few days ago, the planned changes would be the most significant gambling reform in a decade. At the time the NSW Government revealed its plans to put a limit to poker machines, it became clear that the measure is planned as part of the authorities to deal with increasing number of gambling addictions in high-risk areas.