Point of sale tax to eat into online revenue

Australian operators are concerned a point of consumption tax introduced in South Australia may go national, which they say could potentially render the wagering industry unprofitable. The tax came into effect in South Australia on July 1st. All betting operators taking bets from anyone in South Australia will have to pay 15 percent of net state wagering revenue in excess of A$150,000 ($119,196), even if they are not physically based there. The measure includes sports betting, horse racing, harness racing and other wagers such as the outcome of a general election or the Academy Awards. Although South Australia has been the first to impose the tax, it may not be the last. According to Sydney based law firm Addisons, Victoria, New South Wales and Western Australia have expressed their support for South Australia’s POC Tax. It says each of these governments is now expressly contemplating the implementation of a similar measure. Operators...

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