Furious Australian operators are slamming a new SA online gambling tax, saying that it is “too expensive.”
As reported in June, the State Government is set to introduce a Place of Consumption (POC) tax on betting sites on the Internet that are licensed in Australia. The controversial tax is set to be levied starting next year.
Under new rules, there will be a 15% tax on net gambling revenue for sportsbetting websites that cater to customers Down Under. Implementation of the tax will follow through regardless of where the company is based. The United Kingdom already has a similar tax.
However, operators like offshore giant Paddy Power-owned and NT-licensed, Sportsbet are not happy that the tax will increase prices.
Sportsbet has now sent emails to its customers with the argument that the POC levy will make betting more expensive in South Australia than anywhere else. The firm has also subtly warned that their markets will have worse odds.
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Gamblers Down Under Urged to Take Action
Sportsbet said that offers for a sensible discussion with common sense about the issue have been rejected by the South Australian government. Apart from other markets, horseracing wagers and AFL will be affected by the levy, which will be introduced on July 1, 2017.
In the United Kingdom, a POC tax was introduced by the Tory government as a way for offshore-based sites in jurisdictions like Malta and Gibraltar to pay their share. To be able to operate in the UK and obtain a valid license from the UK Gambling Commission, they are required to adhere to the new 15% revenue tax. As a result, some operators have completely left the market in the UK.
But while betting firms in the UK have so far quietly paid the tax, companies in Australia are determined not to go down without a fight.
It is estimated that the new gambling tax will give state coffers more than $9 million, while a further $500,000 will be used to help problem gamblers in the country.
Although Sportsbet is using harsh words, it remains to be seen whether South Australia will be left completely by licensed offshore sites next year. It would certainly be a challenge to formulate different markets for SA-based Australians and those living in New South Wales or ACT. The UK has a much more clear-cut situation where the whole country is covered by the POC tax.
War on Gambling Waged By SA Campaigners
While the new tax is hitting sportsbetting sites, which is a first for Australia, the fight against pokie machines is being led by SA.
Last week, a crossbench group of senators introduced the Statutes Amendment Bill 2016 (Gaming Area Prohibitions and Barring Orders). Nick Xenophon, who is a long-time well known opponent of gambling, is at the forefront of a new campaign that aims to bringing down pokie betting limits.
At present, Aussie punters can legally bet $5 per spin. The group wants that to be lowered to $1 per spin. If it succeeds, the 2016 bill would effectively rewrite all three current laws: the Casino Act 1997, the Independent Gambling Authority Act 1995 and the Gaming Machines Act 1992.
The firing line also includes EFTPOS machines which gamblers use to withdraw large sums of money that they can use on bets. The campaign groups wants to ban the use of EFTPOS terminals.
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