Key Moments:
- Australia’s states and territories are expected to collect more than $10.5 billion in gambling taxes during 2025/26.
- New South Wales collected about $3.6 billion in gambling tax revenue in 2024/25, equal to roughly 7% of total state tax receipts.
- Australians lost more than $104 billion to gambling in the three years following the Murphy Review.
Balancing Harm Reduction and State Budgets
Australia’s gambling reform debate has become closely tied to state finances. State and territory governments rely heavily on gambling taxes to fund public services. Although the federal government has introduced some advertising restrictions, broader reforms have progressed slowly because gambling revenue remains an important source of funding.
Tax Revenue Slows Major Reform
Australia has adopted a gradual approach to gambling reform. For example, the government plans to introduce partial advertising restrictions in 2026. However, critics argue these measures fall short of the Murphy Review’s recommendations. Meanwhile, states expect to collect more than $10.5 billion in gambling taxes during 2025/26, making deeper reforms more difficult.
| Region | Gambling Tax Collection | Timeframe |
|---|---|---|
| New South Wales | $3.6 billion | 2024/25 |
| Victoria | More than $2.4 billion | 2024/25 |
| Queensland | $1.9 billion | 2022/23 |
| Tasmania | More than $120 million | 2023/24 |
Political Pressure Meets Budget Reality
States face a difficult trade-off. Stricter gambling rules could reduce a major source of tax revenue. At the same time, replacing that income would prove challenging. For example, New South Wales depends heavily on tax revenue from around 90,000 poker machines. Budget forecasts also assume continued growth from this sector. As a result, political leaders must balance public concerns about gambling harm with fiscal needs.
Lessons from Other Markets
Many countries tax gambling heavily. However, Australia’s dependence on gambling revenue is unusually high. Meanwhile, other governments have chosen different reform paths. The United Kingdom plans to raise Remote Gaming Duty to 40% and introduce a 25% remote betting tax in April 2027. Likewise, New Zealand is moving toward a regulated online gambling market with a 12% duty that began in July 2024 and additional changes planned for 2026. These examples show that governments can reform gambling rules without relying solely on historical revenue streams.
Building a Sustainable Reform Strategy
Australia will likely need broader fiscal changes to deliver meaningful gambling reform. Advertising restrictions alone are unlikely to achieve that goal. Instead, governments may need new funding sources, compensation arrangements, or revised financial agreements between federal and state authorities. Until then, fiscal dependence on gambling taxes will probably continue to slow reform, even though public support for stricter regulation remains strong.
- Author
Daniel Williams
