Victorian election: Daniel Andrews’ $10.7bn punting tax windfall

The Andrews government is set to make a massive tax windfall on the back of gambling, sparking calls for more support for the addicted and a cashless pokies card system.

Victorian Premier Daniel Andrews in Geelong on Tuesday. Picture: NCA NewsWire / Andrew Henshaw

Almost $10.7bn of gambling taxes will be raised by the Andrews government over the life of this year’s budget, sparking calls by national campaigners for more independent support for the addicted and a cashless pokies card system in Victoria.

Latest budget figures show an average of almost $2.7bn a year will be reaped by Victorian Labor over the next four years from gaming machines, racing, the casino and lotteries as Australia recovers from the pandemic.

The figures show that tax revenue this financial year from racing and electronic machines climbed above expectations in the pre-­election budget update, while the casino and lotteries take was slightly lower than expected.

Electronic gaming machines are forecast to pull in $5.7bn by 2025-26 and public lotteries just under $2.8bn, showing the budget would be even more smashed without the support of gambling.

Alliance for Gambling chief Carol Bennett said there was an urgent need for more independent scrutiny of gambling and more help on issues such as public health and research. “We need everything in this sector, there is so much harm,” she said.

Anti-gambling advocate Tim Costello said Labor under Daniel Andrews in Victoria had become a “party of social injustice” and the state should follow the lead of Tasmania and introduce a cashless card for poker machines.

The pre-election budget update shows the government’s total taxation take will climb more than $5bn over the forward estimates to $35.6bn, $3.8bn of it from fines.

Fines will net close to $1bn by the 2025-26 financial year.

Total taxes on property are set to hit $7.2bn by 2025-26, up by about $1bn compared with this fin­ancial year.

The sharp rise in taxes comes as net debt is forecast to soar to almost $166bn after a sharp rise in spending due in part to the pandemic but also spending on major projects.

Electronic gaming machine revenue will jump nearly $150m to a shade under $1.5bn by 2025-26, public lotteries will grow nearly $100m to $733m, the casino tax take will increase $50m to $233m by 2025-26 and racing and other related betting will increase nearly $50m to $353m over the life of the budget.

Tasmania’s new cashless card, due to be operating by the end of 2024, will be mandatory with default limits of $100 a day and $500 a month. These can be adjusted up or down.

There will also be a hard limit of $5000 a year unless gamblers can prove they have the means to spend more.

Victorian Liberal Treasury spokesman David Davis said taxes had surged in Victoria by more than 80 per cent since 2013-14, with plans for even more increases.

“The government is addicted to tax,” he said.

A government spokeswoman said Labor had a strong record of pursuing harm minimisation.

“In Victoria, venues have to comply with strengthened harm minimisation requirements, and venue operators now have a duty of care to take all reasonable steps to prevent and minimise harm from the operation of gaming mach­ines,” she said.

“We established the Victorian Gambling and Casino Control Commission to provide stronger, more focused regulation of Victoria’s casino and have oversight of all gambling and gaming activities within Victoria – from pubs and clubs through to the casino.

“Gambling harm minimisation is a central part and focus of the VGCCC’s core business.”

“We’ve delivered the largest investment to tackle gambling-­related harm in Victoria’s history to the Victorian Responsible Gambling Foundation.”

Money management, when seen through the prism of cost of living, is one of the core issues as the November 26 Victorian election.