Tracking down out-of-state revenue sources
The state of South Australia is weighing the benefits of a new 15 percent tax on all wagers. According to ABC News, the so-called “place of consumption tax” on all net wagering revenues is a first for an Australian jurisdiction.
If the legislation is approved, reported the World Casino Directory, the tax would apply to all bets on horse, harness and greyhound races as well as soccer and football, and would be effective as of July 2017.
“The betting industry is rapidly changing and our tax regime needs to change with it,” Treasurer Tom Koutsantonis told ABC. “If betting companies are making profits from South Australian punters, they should be paying tax in South Australia, not in whichever jurisdiction their head office and servers happen to be located.”
Koutsantonis said the tax would apply to all South Australia-licensed bookmakers such as Ubet as well as interstate betting operators and other commercial players like Sportsbet and Ladbrokes. The bill contains a tax-free threshold for operators of just under $112,000.
“With the rise of sports betting and online betting in Australia, lots of the taxation was paid in other jurisdictions—effectively tax havens—in particular the Northern Territory and Norfolk Island, both of which have very preferential arrangements for taxation,” said Ross Womersley, executive director of the South Australian Council of Social Service.”
ABC reports that the first $372,550 raised from the new levy each year would be directed to the Gamblers Rehabilitation Fund.
