The Queensland state government has unveiled a new funding model for its racing industry—as part of the new system, a racing levy of 5 percent will be added to the current point of consumption (POC) tax, which will also expand to include promotional bets and free play.
Additionally, the portion of tax revenue that is funneled back to the racing industry will increase substantially, from 35 percent to 80 percent. The new measures are intended to bolster the racing industry and consolidate funding, which currently relies heavily on short-term government programs.
Cameron Dick, Queensland’s treasurer and minister for trade and investment, told Inside Asian Gaming that the new model is “leveling the playing field for all wagering operators and ensuring that organizations profiting from Queensland’s thriving racing industry are investing into its future too.”
One operator that is especially interested in the new provisions is Tabcorp—the company had previously been subject to a 44.5 percent tax rate for its revenue in Queensland due to policies that were implemented in 2014. Under the new model, that rate will be lowered to 35 percent.
Tabcorp CEO Adam Rytenskild told Inside Asian Gaming that he was pleased the company would now pay the same rate as the other operators in the region, and that he commended the state government for “delivering fair and much needed reforms that bring the wagering market into line with the modern economy.”
That being said, Tabcorp did benefit previously from a sole-source sponsorship and advertising agreement with racing clubs that will now be rescinded as part of the new structure.
