The government of New South Wales is asking for public input on a proposal to institute point of consumption taxes on online gambling.
The state already taxes racing and sports betting at physical betting locations. It has joined several Australian states that are considering taxing online betting. South Australia has already launched such a plan.
“Other states and territories have changed the way they tax wagering following the rise of online betting, which is something we are also considering here in NSW,” Treasurer Dominic Perrottet said in a press statement. “At this stage, we want to get 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.”
Gambling operators have been opposing the tax moves by Australia’s state governments. Paddy Power recently said the new tax in South Australia contributed to a 30 percent jump in the cost of sales for its Sportsbet unit. The state accounts for about 7 percent of its revenue.
William Hill also recently pointed to the proposed point of consumption taxes as one of several reasons it sold its Australian division to CrownBet.
Meanwhile, New South Wales has recently proposed legislation that would cap the amount of poker machines—called pokies—allowed in high risk areas.
High-risk communities will be decided based on their socioeconomic level as determined by the Australian Bureau of Statistics.
The measure immediately drew opposition from gambling reform interests as the measure includes a provision that allows clubs and pubs to lease licenses on machines from other venues. The could mean clubs who are capped from adding machines could lease machines to venues in more affluent areas, actually increasing the amount of pokies in play.
Pokies have become a hot button issue in Australia and have dominated state elections in Tasmania and South Australia, where candidates have called for sharp reductions of the machines, including a total ban in Tasmania. That has led to some heated advertising against the measures saying cutting pokies will cost jobs.
