NSW tax hit on online bookies tipped to rake in $100m

An online gambling tax is expected to be introduced in the NSW (New South Wales) budget at either 15 per cent of bookmakers’ profits or 2 per cent of total turnover, in a move expected to add $100 million a year to state coffers.

Treasurer Dominic Perrottet will announce today a four-week consultation period which will allow gambling companies to comment on the proposed tax.

Mr Perrottet said: “NSW wagering tax on racing and sports betting is levied at the physical point of sale and does not capture most online wagering, a part of the industry that has experienced significant growth in recent years.

“Other states and territories have changed the way they tax wagering following the rise of online betting, something we are also considering here in NSW.

“We want a better understanding of how such a change would operate and whether it is the right move for NSW, so we want all interested parties to have a say.”

Ministerial diary records show that the racing industry, Tabcorp and the NRL have met the Treasurer in recent months concerning the tax.

Tabcorp and the racing industry are understood to favour a tax on turnover, which they argue is fairer than on profits, while the NRL is understood to oppose the tax as the organisation believes it may lead to pressure on it to renegotiate its agreements with online bookmakers.

Racing Minister Paul Toole last year foreshadowed the tax would pay for the greyhound racing integrity commission, announced after Mike Baird’s racing ban was reversed.

The Australian understands the Victorian government, Racing Victoria and betting companies have negotiated a wagering tax of about 8 to 10 per cent of revenue.

Source: theaustralian.com.au