Lawmaker calls for gaming tax
Gamblers in Victorian, Australia lost AU$5.8 billion (US$4.09 billion) in the past financial year, almost half of which was forfeited at poker machines hotels and clubs, and another $1.9 billion lost at the Crown Casino in Melbourne, according to the Asia Gaming Brief. The state government skimmed off a total of AU$1.6 billion in taxes from the gaming halls, reported the Australian Associated Press.
The latest figures from the Victorian Commission for Gambling and Liquor Regulation says almost two-thirds of hotel gaming machines averaged more than $12,500 in player losses per machine, AGB reported. The law firm of Maurice Blackburn is planning a legal challenge to the industry, contending that poker machines are designed to be addicting.
Meanwhile, Senator Bridget McKenzie of Victoria has called for a new uniform gaming tax and a ban on residents gambling with foreign operators through “banking and other tools,” reported the Guardian newspaper. She is particularly alarmed about the rise in sports betting, which she says is taxed at a rate that is too low.
“In terms of wagering, the current legal framework doesn’t provide the outcomes we need,” McKenzie said. Her proposal would levy a standard tax and distribute revenues to states that currently regulate the industry.
Earlier this month, McKenzie’s Nationals colleague David Gillespie called for the gaming tax to be raised to 15 percent. McKenzie’s proposal calls for a federal tax of 0.05 percent to be levied on gambling turnover. The tax would be collected by licensed betting operators on all transactions relating to Australian sporting events. McKenzie is also proposing a product levy to be applied uniformly across all sports.
“A condition of an Australian wagering operating license will be that any licensee has to ensure that their affiliates pay Australia the product levy on betting by all customers on all Australian sports,” she said.
McKenzie contends that her plan would address the increase in online sports betting; she says the internet has made state-based regulatory authorities ineffective.
