POINT OF CONSUMPTION TAXES -- WHO WINS, WHO LOSES?
The following extracts from an SMH story today have the feel of a set-piece comment on the likely impact of point-of-consumption taxes on race-betting and other gambling turnover.
Many would be interested to know what professional stock-market analysts are saying about the implications for Tabcorp and more generally what responses the 'corporates' may be planning to avoid and evade such imposts on their operations.
[The new tax] will help ensure a well-regulated and sustainable wagering sector.’
Online taxes to squeeze foreign bookmakers
Online betting revenue will now be taxed at the point-of-consumption.
A series of new digital betting taxes set to crimp the profits of online bookmakers in Australia is expected to force an acceleration of the wave of consolidation sweeping the fiercely competitive online gambling sector.
Online bookmakers are bracing for the so-called “point-of-consumption” taxes beginning in NSW, Victoria, Western Australia and the Australian Capital Territory today, which, for the first time, will tax digital gambling losses based on where a bet is placed rather than where the bookmaker holds its licence.
The new taxes, already operational in South Australia and Queensland, come in response to long-held concerns of state governments, TAB operator Tabcorp and the pubs lobby that the nation’s largely foreign-owned online gambling services – including Sportsbet, BetEasy, Ladbrokes and Bet365 – have not been contributing their “fair share”.
The new taxes were needed to level the playing field, they argued, as most of Australia’s online bookmakers held licences in the lowertax Northern Territory despite operating nationally, meaning they paid vastly less tax than state TABs.
“Tabcorp has supported the introduction of point-ofconsumption taxes and has worked with governments and the racing industry to ensure that the significant fees and taxes we already pay under our state licences are recognised,” a Tabcorp spokesman said yesterday. “The introduction and commencement of point-ofconsumption tax regimes will help ensure a well-regulated and sustainable wagering sector.”