The Australia-based gambling behemoth Tabcorp could try go get a discount for the fees’ amount paid by it to state racing authorities, following the decision of the Victorian Government to impose a new tax on online gambling operations.
As reported yesterday by Casino Guardian, Australian bookmakers are preparing to face the introduction of a new point-of-consumption tax in the state of Victoria.
The 8% levy is set to be rolled out in 2019 and is to be imposed to companies’ revenue generated from all Internet-based betting services and applications. According to market experts, the new levy which is to be implemented by the Government of the state of Victoria are mainly focused on taxing Australian bookmakers that are only set online, such as bet365, Ladbrokes, Sportsbet and CrownBet. Such operators usually run their services under an operating license issued by the Northern Territory. Such companies also usually do not pay any wagering taxes to other states.
The new 8% tax which is set to be rolled out by Victorian authorities is to also apply to Tabcorp, which is currently the largest gambling company operating on the territory of the country. The company also provides both land-based and remote gambling operations. For the time being, Tabcorp pays a 6.5% on its gambling revenue and some gaming analysts and experts have shared their doubts that the company would be forced to pay larger levy as a result of the new tax implementation.
The company itself issued a statement following the official announcement of the new point-of-consumption tax in Victoria, sharing its expectations that its current status quo would not be hurt by the levy. The gambling giant said that the Government should have recognised the massive amount of betting tax that was being paid by both Tabcorp and its joint-venture partner, Racing Victoria. The latter also confirmed that no worse-off is expected due to the new tax.
New 8% Point-of-Consumption Tax Rolled Out in Victoria
Yesterday it became clear that remote gambling operators in the state of Victoria would have to face an 8% point-of-consumption tax, with the latter set to be rolled out in January next year. The implementation of the new levy on online gambling services is expected to bring the state a AU$30-million gambling revenue every year.
The fact that the new point-of-consumption tax that is to be rolled out by local authorities is considerably lower than the one which has been introduced or at least considered by other Australian was not left unnoticed. In July 2017, a 15% levy was imposed by the South Australian Government, while the state of Western Australia is expected to officially introduce a point-of-consumption tax of the same rate in January 2019. Reportedly, Queensland has been considering the roll-out of the same tax.
The announcement of the new levy caused controversial reactions across the state, with both anti-gambling campaigners and iGaming operators sharing their disappointment with the local Government’s decision.