With the Interactive Gambling Amendment Bill that took place earlier this month, the online gaming industry in South Australia could be set for more federal government regulation, with Treasurer Scott Morrison proposing a national consumption tax on online betting.
From July South Australia will introduce of a 15 percent point of use tax. The tax will see all racing betting and sports online in the state paying a return to the state government. South Australian Government is set to garner up to $10 million from the new law. The tax will then be used to fund Gamblers Help programs in the state.
On Friday Treasurer Morrison met with state and territory ministers. Reporters told that he believed that SA tax could be applied in a national framework. This might also provide a nationally consistent approach to gambling taxes.
Major Blow Out for South Australia’s Gambling Industry
Online betting companies currently pay tax in the territory or state where they are registered. The majority of them are licensed in the Northern Territory, known to have a significantly lighter tax burden.
“Now this is an imperative issue both from a revenue perspective but frankly more important from a social viewpoint. And we all agreed that it was necessary to work on a nationally consistent approach”- said Mr Morrison.
Online sports betting companies have objected to the SA law, which is said to make South Australia a very expensive jurisdiction to operate in. The new law will be a major blow to the gambling industry. All online betting will practically be banned.
South Australia and other jurisdictions have begun to influence online gambling heavily in the past few years. Other law changes include a maximum bet limit for online pokies. Another bill aimed at Interactive Gambling was introduced last year in November to the Senate. It is currently being reviewed and amended.
It is unclear whether these bills will be passed anytime soon. Though if they are, it will impact everyday Aussie players. The bill brought before Senate could even force poker fans to turn to illegal websites and betting agencies on gambling online.