Tasmania a Tax Free Jurisdiction for Online Gambling

Published Wednesday, October 07, 2009 - Online-Casinos.com

Australian horse racing in under siege once again according a so called heavyweight team of horse trainers and owners. The say a wave of online and corporate bookmakers could cripple the sport. Now a battle is in the making between the thoroughbred industry and the corporate bookmakers. New South Wales racing officials feel very financially threatened because online bookmakers are not willing to pay the heavy commissions to the racing industry. The state based gambling organizations were subsidizing racing for years. Betfair and the other online gambling companies offer lower margins for the customers and thus their profits are less than those garnered by the State operated organizations.

Now in Tasmania for $250,000 dollars a licence to operate an online gambling firm can be had. Those firms are then able to advertise in the UK. The Tasmanian Parliament passed legislation that eliminates tax for online or so-called corporate bookmakers. Some in the Australian racing industry feels that horse racing world, should get on with the future of the sport and embrace online punting. Corporate bookmakers as they are known in down under expect to turnover $5 billion this year.

Treasurer, for Tasmania, Michael Aird, says the state could potentially become a world-wide hub for corporate bookmakers otherwise known as online bookmakers. The tax rate will be amongst the lowest in the world, comparable to places like Gibraltar and Malta. Tasmania has a lengthy history of bold moves with regards to gambling. In 1973 after a referendum the Casino at Sandy Bay opened its doors the first casino in the country.Then the officials saw fit to let controversial betting exchange Betfair into the country back. At the time Betfair was attacked by established betting operators on the grounds that allowing someone to bet on a team losing could lead to race fixing.Betfair says it is about seven or eight times less expensive than traditional betting. All this boils down to the Tasmanian government wanting to attract the online gambling dollar and bring jobs to the island.

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