The NSW government is considering lifting the tax on all bets made in the state from 15 to 20 per cent following a proposal from industry stalwart Tabcorp; a move that would be a major blow to corporate bookmakers including Sportsbet and Ladbrokes.
Treasurer Daniel Mookhey said on Friday that the government would consider increasing the point of consumption tax to match Queensland and the ACT, and would consult other parties before making a decision.
NSW Treasurer Daniel Mookhey is considering the proposal to increase the tax on bets placed in the state to 20 per cent. Credit: Getty
“Gambling companies should always be paying their fair share ... the NSW government will apply strict scrutiny to Tabcorp’s proposal. Change will happen if it’s clear the public will be better off,” Mookhey said.
The point of consumption tax (POCT) was introduced in 2019, so that corporate bookmakers were made to pay tax to the state in which a bet was placed, instead of where the bookmaker is registered.
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The concept was championed by Tabcorp, which is the only wagering company registered in every state and has long bemoaned the unequal tax playing field across the wagering sector. The bulk of corporate bookmakers, such as Sportsbet and Ladbrokes, are registered in the Northern Territory and currently pay less betting tax than Tabcorp in some states, including NSW.
Tabcorp holds the NSW retail betting licence, which allows it to solely operate the state’s totalisator and also has thoroughbred racecourse sponsorship exclusivity.
Tabcorp said the tax increase would create a level playing field and modernise retail exclusivity. Its share price increased 6 per cent in mid-morning trade, to 63¢.
“This is a positive step towards ensuring the sustainability of the NSW racing industry,” Tabcorp said in a statement to the ASX.