Lawmakers in New South Wales (NSW), Australia are instituting a 15 percent point of consumption tax (POCT) on operators in the state. That move closes a loophole that allowed gambling operators to evade taxes by keeping their servers in other places and takes a big bite out of revenue streams.
Lawmakers passed a similar bill back in January 2019 with a 10 percent POCT after experiencing operators whose licenses or server locations shielded them from paying taxes at all. Under the terms of a POCT, taxes are paid on the location where the bet was placed. Under the old tax scheme, operators were taxed on where the bet was accepted, which could be a server sitting in another country.
Tabcorp, one of the biggest operators in NSW welcomed the jump in tax exposure, which will be implemented over an 18-month period, saying that they felt they should be paying their fair share. In a statement reported on by iGamingBusiness.com, Tabcorp managing director and chief executive Adam Rytenskild praised the tax increase saying, “Today is a positive step forward in levelling the playing field in NSW,” Tabcorp managing director and chief executive Adam Rytenskild said. “Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and ensures a fairer system,.
“We welcome the NSW government’s announcement. Online betting has changed substantially since the TAB’s licences were issued and this is an opportunity to better align with the modern economy.
“The Queensland government has recently announced reforms to create a level playing field and NSW is now a step closer to a level playing field.”
Australia, like many western countries, is closely scrutinizing the laws governing regulated gambling and new restrictions on gaming advertisements and new taxes are common occurrences.