Odds against bonus bets surviving new bookies tax

BONUS bet rewards and other punting promotions could be the first casualty of a new Victorian consumption tax set to hit online corporate bookmakers from next year.

Emirates Stakes Day at Flemington racecourse. 8th November 2014, Melbourne Australia. Race 7 Darley Classic (Group 1) ridden over 1200 meters. Winner no 9 Terravista ridden by Hugh Bowman, 2nd no 10 Chautauqua ridden by Dwayne Dunn, 3rd no 1 Buffering ridden by Damian Browne. Picture: George Salpigtidis

BONUS bet rewards and other punting promotions could be the first casualty of a new Victorian consumption tax set to hit online corporate bookmakers from next year.

The 8 per cent Point of Consumption Tax (PoCT) will apply to net wagering earnings (bets less winning payouts) and the government could reap in excess of $30 million annually.

From January 1, all wagering and betting operators will be liable to pay the PoCT on any bet placed with them by a customer in Victoria. Close to 25 per cent of all bets in Australia are placed in the state.

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The moves follows the introduction of similar taxes in the UK, South Australia and Western Australia, but is nearly half the 15 per cent rate in those jurisdictions.

However, despite the lower rate in Victoria, corporate bookmakers have flagged the need to pass on the shortfall to punters, with promotional-type bets understood to be the first area affected.

Beyond that, smaller operators could potentially go to the wall leaving only the bigger bookmakers able to absorb the extra costs, resulting in less choice for punters.

The argument against the impost from corporate bookmakers is that they already pay GST, product and licensing fees to sports individually as well as corporate income taxes, leaving little room for another state-based levy.

That’s where the effect on promotional and marketing strategies comes in to play and corporate bookmakers will need to tap into those areas of extra spending to find the money to pay the new tax.

Corporate bookmakers are expected to reduce areas of extra spending to find the money to pay the new tax.

A statement from Responsible Wagering Australia, the body which represents corporate bookmakers including Sportsbet and CrownBet, said the new tax would have “significant negative and far-reaching consequences for Victoria”.

Victorian Treasurer Tim Pallas said it was time online betting companies “pay their fair share” of tax in Victoria.

Racing Victoria’s 2017 financial report showed licensing fees from online bookmakers, a combination of either a percentage of turnover or of gross revenue, was $157 million in 2017. That compared with just $85 million in 2014, highlighting the explosion in online wagering revenue which the government will tap.

Racing Victoria’s 2017 financial report highlighted an explosion in online wagering revenue.

INSIDE RUNNING

NO MOUNTAIN TOO HIGH FOR V’LANDYS

RACING NSW boss Peter V’landys will keep up the fight for The Everest to get Group 1 status, not because he thinks the restricted entry races deserves it, but to be “disruptive”.

V’landys said on Monday his board wanted the $13 million race, run on the same day as the Caulfield Cup, to get the Group 1 tag, even though it didn’t matter to him.

But he maintained gthe only oppotision from Racing Victoria officials was the fact The Everest would deflect attention from the Caulfield Cup, despite other instances during the year of Group 1s being run on the same day in different tracks cities.

“They think The Everest is a bit of a juggernaut at the moment and they want it away from the Caulfield Cup,” V’landys told RSN.

“We are being disruptive. We are being controversial and that’s all part of The Everest and that’s why it’s got to where it is in the first year. It’s why we are talking about it five months before the race.”

Terravista wins the 2104 Darley Classic from Chautauqua (far left) and Lankan Rupee (far right). Picture: George Salpigtidis

TIME CALLED ON ‘WORLD’S BEST SPRINTER’

TWO-TIME Group 1 winning sprinter Terravista has been retired after failing to fire in Scone on Saturday.

Once lauded as the world’s best sprinter by trainer Joe Pride, the eight-year-old bows out with 11 wins and seven placings from 32 starts, and over $2.6 million in prizemoney.

Terravista was at his peak when he tore past Chautauqua and Lankan Rupee in the

2014 Darley Classic down the straight at Flemington.

Terravista collected his other Group 1 at Flemington in the 2017 Lighting Stakes, but has placed just once in seven starts since.

He ran ninth of 12th in an 1100m race at Scone on Saturday, his final outing.

MELBOURNE CUP CARNIVAL UPS THE ANTE

THE Melbourne Cup carnival will spread its broadcast wings further in to the UK and Ireland after the Victoria Racing Club signed a new deal with Sky Sports Racing.

The deal with covers all four days of the carnival including AAMI Victoria Derby Day, Kennedy Oaks Day and Stakes Day as well as Lexus Melbourne Cup Day.

Sky Sports Racing will also have on track exclusivity among UK and Ireland broadcasters.

Rekindling secured another Melbourne Cup for Ireland last year when the Joseph O’Brien-trained galloper scored in a race which featured seven Irish horses and four UK-trained stayers.