South Australia raises gambling taxes

The increment on  gambling taxes would generate millionaire annual incomes to the State Budget.

Australia.- South Australia State announced today that gambling agencies will have to pay 15 percent on taxes to the local government for the operation of wagering on sports, elections and horses. The new measure aims at collecting over AUS$9.2 million –US$7 million– per year to help the State Budget.

The increase on the tax percentage was revealed by State’s treasurer Tom Koutsantonis, who explained that the national first regulation will destine AUS$500,000 –US$376,395– each year to boost gambling rehabilitation programs. “If betting companies are making profits from South Australian punters they should be paying tax in SA, not in whichever jurisdiction their head office and servers happen to be located. By implementing a wagering tax based on the place of consumption, we are ensuring that businesses are paying taxes in the jurisdiction in which they are making their money,” added the treasurer.

The new gambling policy will be applied on the net wagering revenue of betting companies that earn more than AUS$150,000 –US$113,000– per year and offer services to South Australia. The tax, which will come into force in July 1st, will include gambling agencies that operate bets on horse, harness and greyhound racing, and AFL, cricket, soccer, among other sports. Furthermore, the increment will also count bets on elections and the Academy Awards. Gaming brands such as UBet, Sportsbet and Ladbrokes will have to pay the increased tax, proposed by South Australian Council of Social Services for gambling tax reform and the implementation of a place of consumption charged on companies.