Victoria considers low taxes for online bookies

The state could introduce a new tax on digital betting companies at half the rate of other states.

Australia.- Australian state Victoria is expected to introduce a new tax on digital betting companies at half the rate of other states. The announcement could come as early as this week. Anti-gambling campaigners are worried over the possible tax.

Other Australian states have already announced “point-of-consumption” taxes, which are applied on digital bookmakers based on where an online bet is placed instead of where the company is located.

Anti-gambling campaigners have accused the Victorian Labor government of being under the influence of an online wagering industry association led by former Labor Party heavyweight, Stephen Conroy, local media reported.

Nevertheless, the measure would be accepted by online betting companies, who insist that taxes introduced in other states are too high for them to be able to survive. Victorian racing officials are also in favour of the possible legislation as they believe that excessive taxation could jeopardize investment from online bookmakers in the industry.

Victoria and New South Wales, the biggest states in Australia, have committed to introducing point-of-consumption taxes, even if there have been no official details. It was believed that the Victorian government would reveal the tax in its recent state budget, but it wasn’t included.

Treasurer Tim Pallas said: “To be clear, I’ve been speaking to everybody, whether it’s industry, sporting codes that think they’ll be adversely affected, other states about the possibility of a broadly consistent approach to the tax’s introduction and, importantly, anti-gaming groups, to make sure we have a clear appreciation of their view and their expectations about what we deliver.”