South Australia Implements New Tax on Online Gambling

Published Thursday, June 23, 2016 - Online-Casinos.com
South Australia Implements New Tax on Online Gambling

The Australian online gambling industry has undergone a number of changes of late with the controversy on in-play sports betting still getting the media attention. Australia officially known as the Commonwealth of Australia is a federation of six states, together with ten federal territories. The Australian mainland consists of five of the six federated states including the state of Tasmania an island in close proximity to the mainland and three of the federal territories. This diversity is part of the problem when it comes to regulating online gambling in the country. There are many entities currently responsible for issuing licences and enforcing the legislation in each jurisdiction so the political and regulatory system is difficult to negotiate for operators.

In an effort to raise additional revenue the South Australia State Government is about to introduce the country's first interstate gambling tax. A ‘Point of Consumption’ tax will be a 15% wagering tax is based on place of consumption of online gambling products. The tax is proposed to generate as much as Aus$9.2 million (€6.1 million/US$6.9 million) in additional funds each year.

This is the first time that an Australian jurisdiction will target companies based on where bets are placed, rather than where the operator is located. Ubet, Sportsbet and Ladbrokes will be some of the operators that will be affected by the new tax regime.

The Australian mews source quoted Treasurer Tom Koutsantonis, “The betting industry is rapidly changing and our tax regime needs to change with it,” Mr. Koutsantonis added, “If betting companies are making profits from South Australian punters they should be paying tax in South Australia, not in whichever jurisdiction their head office and servers happen to be​ ​located. “By implementing a wagering tax based on the place of consumption, we are ensuring that businesses are paying taxes in the jurisdiction in which they are making their money.”

 

 

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