Qld betting tax slammed as a ‘complete stitch-up’

The Palaszczuk government has been accused of leaving racing industry operators “completely in the dark” after announcing an increase to the betting tax, with one boss slamming the move, saying industry operators would be “negatively impacted”.

The Palaszczuk government has been accused of leaving racing industry operators “completely in the dark” after announcing an increase to the betting tax, which one boss has slammed as a “complete stitch-up”.

But the move has been welcomed by pubs and clubs, with Australian Hotels Association chief executive officer Stephen Ferguson saying it created a level playing field.

EDITORIAL: Racing tax shows up Labor’s arrogance

“What happens at present is that the lower rate of tax for the corporate bookmakers enables them to earn greater profits,” he said.

“Those greater profits enable them to target pub customers through more marketing and bonuses.”

The government last week announced it would slap a 5 per cent levy on the existing betting tax in an effort to “level the playing field” between Tabcorp and online bookmakers.

At least 80 per cent of that revenue will be funnelled directly back into the racing industry – up from the previous cap of 35 per cent.

Entain, the parent company of Ladbrokes, Neds, Betstar and Bookmaker.com, slammed the move, with CEO Dean Shannon claiming Racing Queensland had got it “materially wrong”.

Treasurer and Minister for Trade and Investment Cameron Dick announcing an increase in point of consumption tax (betting tax increase) to level up the playing field among betting agencies. Picture: Matthew Poon

“The impact on industry is 60-70 per cent higher than publicly claimed by the Queensland government and its ministers,” he said.

“Financial modelling relied upon by Queensland government indicated an $80m tax impact for Australian corporate bookmakers. The real impact on bookmakers is closer to $130m and Racing Queensland have conceded this error in a meeting last week.”

Mr Shannon claimed industry operators would be “negatively impacted” and had been left completely in the dark. “It’s a complete stitch-up,” he said.

But Racing Queensland said the tax reform was designed to ensure a more competitive operating environment for all betting operators and for the first time would ensure bonus bets were taxed as they were in every other Australian mainland state.

“Moving forward, the tax reform applies consistently for all WSPs, including TAB, and ensures they all pay the same rate for any bet by a Queenslander,” a spokesman said.

A government spokeswoman said revenue estimates made by Racing Queensland and Queensland Treasury were “naturally conservative”.

Minister for Racing Grace Grace, Treasurer and Minister for Trade and Investment Cameron Dick, Toowoomba Turf Club CEO Lizzy King, Racing Queensland Brendan Parnell and President of the Jockey Association, Pam O’Neill, after the announcement of the point of consumption tax in regards to betting.

“If there is higher revenue, this is welcome news for Queensland racing as it will mean more money into Queensland racing clubs, instead of heading overseas to foreign tax havens,” she said.

Tabcorp CEO Adam Rytenskild said the company strongly believed foreign-owned bookmakers should be paying the same taxes and fees, which could be invested into local industry and the community.

“Online betting has changed the market substantially since the TAB’s licence was issued – the TAB is currently paying double the fees to the racing industry; going forward, we will all pay the same,” he said. “This is fair.”

It was recently revealed Labor-linked Anacta Strategies – representing Tabcorp – met with senior government officials several times before the announcement. But Tabcorp said Anacta was not engaged to lobby for the reforms.