Online gambling operators in Victoria have reportedly started lobbying against a proposal that could see a 15% point of consumption tax come into effect. Bookmakers are trying to make sure there is a more gambling-friendly environment in Victoria. Some have even warned that should this tax come into effect; it could have terrible consequences for the industry as a whole.
Victoria Could Follow Other States
Should the 15% tax be approved, it would mean that all bookmakers are required to pay 15% of the money they generate to the state. South Australia was the first to introduce this point of consumption tax in July 2017. Western Australia began discussion implementing a similar system, and this has been approved. It will come into effect in January 2018. Now, Victoria are considering the same thing.
As it stands right now, many International sportsbooks are able to obtain a license in the Northern Territory. This allows them to operate throughout Australia. However, many have criticised these sportsbooks for not contributing enough taxes to the states they operate in. This is what has led many states to consider the point of consumption tax. Sportsbooks do not agree with the statement that they haven’t been contributing enough, saying that they have contributed via numerous other taxes and fees.
Victoria Sportsbooks Looking to Lower Tax Amount
Currently, sports betting is the only online gambling that can target Australian players. Online casinos and poker products are forbidden from advertising to Aussie payers. A report from the Responsible Wagering Australia group claims that online bookmakers in Victoria, such as Bet365, Unibet, and Ladbrokes, contributed AU$90 million in taxes and payments to the state. In addition, they paid out AU$127 million in wages to employees.
Sportsbooks are attempting to get the point of consumption tax lowered from the proposed 15%. Certain people within the industry have suggested that bookmakers in Victoria would be unable to lose 15% of their revenue to the tax, which would have awful consequences.