Racing Queensland has announced a new 5% tax on online bookmakers, effectively raising the sales tax (POCT) rate to 20%.
This harmonizes the tax rates of online businesses operating in the state with Tabcorp, a totalizer operator, and splits opinions into two.
Tabcorp, Australia’s Totalizer Commission, has long argued that differences in tax rates represent an unfair competitive advantage for the online sector.
In addition to the tax increase, there are plans to expand the stake tax to include free bets and bonus bets, as well as increase the percentage of stake tax revenue sent directly to the horse racing industry from 35% to 80%.
Adam Rytenskild, Tabcorp’s Chief Executive Officer, said:
“From now on, everyone in Queensland will pay the same amount. We commend the Queensland Government for implementing fair and coveted reforms to align the gambling market with the modern economy. ”
However, the online betting sector does not share TAB’s optimistic view.
Responsible Wagering Australia (RWA), an industry group in the online industry, said in a statement that the move was “disappointed” and that the increase was “introduced without consulting the online gambling industry.”
“Such a major tax reform unfairly establishes the monopoly enjoyed by established land-based gambling service providers at the expense of the emerging online industry. Disproportionate to panters choosing online options. While affecting, it will have a serious impact on Queensland’s racing sector and work. “
In addition to the announcement, Racing Queensland and TAB have reached a settlement to end the court battle that has been taking place since 2019. The dispute has been about calculating the fees paid by TAB since the introduction of POCT in 2018.
Queensland Finance Minister and Trade and Investment Minister Cameron Dick argued that the move would boost Queensland’s historic racing sector. “There are 125 racing clubs in Queensland. For 85 of these clubs, racing meetings are the largest or second largest event in the community each year.”
“Our government recognizes how important these rallies are to Queensland’s social structure, and today’s announcement will help them prosper in the future.”
