The government of New South Wales has called for public feedback as to whether it should update its wagering taxes to target online gaming.
At present, NSW wagering taxes on racing and sports betting are levied at the physical point of sale and don’t capture online wagering. Some other states in Australia, such as South Australia, have already launched point of consumption taxes to better collect revenue. While Western Australia and Queensland also plan to follow suit.
“Other states and territories have changed the way they tax wagering following the rise of online betting, which is something we are also considering here in NSW,” Treasurer Dominic Perrottet said in a statement. “At this stage, we want to get a better understanding of how such a change would operate and whether it is the right move for NSW, so we want all interested parties to have a say.”
Many online wagering companies are physically located outside of NSW and are not required to pay the existing wagering tax. By contrast a “point of consumption tax”, if introduced, would be levied on wagering companies based on the location or ordinary residence of the person placing the bet, regardless of where the wagering company is located.
Operators in the industry have warned that the PoC will have a significant impact on the bottom line if it is introduced across the country.
Paddy Power on Tuesday said the PoC in South Australia contributed to a 30 percent jump in the cost of sales for its Sportsbet unit. The state accounts for about 7 percent of revenue.