NT betting industry wars heat up as risk to 380 jobs grows

THE interstate war being waged against the Territory’s online betting industry has stepped up another notch, with gambling companies stung with a new wagering tax for bets taken in the ACT

THE interstate war being waged against the Territory’s online betting industry has stepped up another notch, with gambling companies stung with a new wagering tax for bets taken in the ACT.

The 15 per cent tax is based on a similar model in South Australia and will apply to the net betting revenue generated by companies through bets placed in the ACT, as well as bets made by ACT residents.

The Territory’s status as the country’s premier online licensing jurisdiction, and the 380 jobs that go with it, are under threat following a decision by states to work towards harmonising state-level online sports betting point of consumption taxes (POCT).

State governments, pub operators and gaming giant Tabcorp say the taxes are necessary to “level the playing field” because Australia’s online sports-betting companies are mostly licensed in the Northern Territory and pay vastly less in tax than TABs.

Treasurer Nicole Manison

There are fears the POCT may result in operators relocating offshore but continuing services to punters tax free.

South Australia was the first Australian state to introduce a point of sale betting tax.

If all states follow suit, it has the potential to cripple NT as a licensing jurisdiction.

Victoria recently introduced an eight per cent tax and with the ACT now on board, it appears just a matter of time before all states have a POCT.

Queensland and West Australia say they will introduce a POCT as well.

Treasurer Nicole Manison has already written to Federal Treasurer Scott Morrison outlining the Territory’s case.

“The Territory’s position is that any introduction of point of consumption taxes should occur by a national regime,” Ms Manison said in her letter to the Treasurer.

“This would preferably be under Commonwealth legislation and administration, with tax receipts distributed on the basis of place of consumption or population share.”