New Australian online betting taxes to squeeze foreign bookies

[The Buzz]

A series of new “point-of-consumption” digital betting taxes were implemented on 1 January for online bookmakers in Australia and they are expected to force an "acceleration of the wave of consolidation" sweeping the online gambling sector.

For the first time, taxes for digital gambling losses will be based on where a bet is placed rather than where the bookmaker holds its license.

From The Sydney Morning Herald:

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 necessary to level the playing field, they argued, as most of Australia’s online bookmakers held licences in the lower-tax Northern Territory despite operating nationally, meaning they paid vastly less in tax than state TABs.

“Tabcorp has supported the introduction of point-of-consumption 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 on Monday.

“The introduction and commencement of point-of-consumption tax regimes will help ensure a well-regulated and sustainable wagering sector.”

Gaming industry analysts and insiders predict only the biggest online bookmakers will be able to withstand the impost, and say the new taxes will likely speed up the consolidation that has begun among operators in the hotly competitive digital sports-betting sector.

Earlier in 2018, British wagering powerhouse William Hill sold its Australian assets to BetEasy, citing new gambling regulations and the incoming state taxes as factors that would pressure its profitability.

Most recently, in November, one of the nation’s newest online betting sites, Neds.com.au, was snapped up by Ladbrokes’ London-listed
parent company, global gambling giant GVC Holdings for as much as $95 million.

Off the back of internet and app-based wagering, sports-betting revenue has swelled by 15 per cent a year in Australia, to become the fastest-growing form of gambling. Many of the world’s biggest and best-known gambling powerhouses including Paddy Power Betfair, The Stars Group, Ladbrokes and Bet365 are operating here, and have transformed Australia into one of the most competitive online betting markets globally.

Read more here: https://www.smh.com.au/business/comp...31-p50oxv.html

[TheGooner]

More details from the article

The rate of the new taxes varies from state to state: South Australia, Western Australia, Queensland and ACT will collect 15 per cent of bookmaker revenue from bets placed in their jurisdictions, while NSW will take 10 per cent, and Victoria 8 per cent.