Tasmania operators demand lower taxes

Tasmania operators are willing to reduce the amount of slots machines in exchange of lower taxes.

Australia.- The Federal Group, a Tasmania’s casino operator, presented a proposal demanding lower taxes in exchange of reducing the amount of slots machines in its local pubs and clubs. The Australian company operates two licensed casinos as well as every authorised slot machine in the state.

“At the moment we’re looking at — for want of a different word — a single licence operator who’s able then to spread the tax burden over casino premises, and licenced hotels and the clubs, the game of Keno and table gaming,” explained Federal Group’s managing director Greg Farrell. “If you then fast forward to a future model where the casinos are separate from the network, then the casinos would require to have a taxation arrangement, a system that’s more fit for purpose for them being competitive against other like-sized regional casinos.”

The demand was presented to a parliamentary committee in Hobart this week, according to the abc.net.au. Farrell’s document argued that the government should reduce the tax rate of 35 percent on casino income. Federal Group of Tasmania has owned the gambling licence monopoly since 1973, as revealed by the local newspaper.

“I guess it’s fair to say that under this proposal the tax rates in casinos on EGMs would be consistent with other regional casinos around Australia,” responded federal’s corporate affairs director Daniel Hanna. The official explained the 35 percent tax includes all gaming services and EGMs (electronic gaming machines).