South Australia Proposes Tax on Online Gambling

Published Saturday, April 25, 2015 - Online-Casinos.com
South Australia Proposes Tax on Online Gambling

It is a sure bet that as soon as a government sees they could collect taxes from a new revenue source there will be legislation following to acquire those funds. Such is the case in the United Kingdom where the tax man has recently added a tax on online gambling revenue from operators in that jurisdiction. Following suit the South Australian government has just announced they plan to put into place a Point of Consumption Tax to apply to interstate online betting operators that cater to punters in South Australia.

It has been estimated that almost 75,000 people in the state of South Australia hold online gambling accounts and the South Australia Treasury says these operators do not pay any tax apart from the annual $1,500 fee that allows them to operate in SA. It was reported in The Advertiser news that Tom Koutsantonis the Treasurer for South Australia said, "It is important that online gambling operators pay taxes considering that they are generating profits based on betting activity of South Australians."

The new a Point of Consumption Tax is expected to generate an extra $47 million per year. It has been said that the government already garners some $390 million from all the gambling companies that offer their services to South Australians. There are benefits and drawbacks to be had from this new tax. It has been suggested that there will be more stringent controls on the activities of online gambling operators who currently are self regulating when it comes to reporting business activity to the Treasury. The SA Treasury hopes to establish a process of auditing and compliance possibly like that employed by the U.K. Gambling Commission.

Operators in South Australia are not all that happy with this proposal as it will take some of their profits away. The model of regulated online gambling in the U.K. has shown that regulation makes things fair for everyone.

 

 

 

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