New South Wales increases PoC tax by 50% amid bookmaker outrage
Racing industry to receive 33% of PoC revenue, with A$740m in total set to be generated in four years as RWA rallies against “backroom deal”
Bookmakers in Australia have blasted “extremely concerning” tax increases in New South Wales after the state Treasury announced a new 15% point of consumption (PoC) tax.
During its annual state budget on Tuesday 21 June, The Treasury said there will be a 50% increase from the existing 10% PoC rate.
The tax increase is set to result in a rise in the amount of revenue returned to the racing industry in the state from 20% to 33%, with the remainder going to the government.
It is thought that the move will raise up to A$740m (£417m) over the next four years, which will mean around A$265m will filter into NSW racing.
Tabcorp, the only firm permitted to operate retail premises in the state, has been granted a A$30m rebate to offset any potential losses over the next four years “to ease the transition”.
It will arrive in the form of A$22m next year and A$8m the year after.
It is claimed that the online industry in the state was blindsided by the news, having had no consultations with the government prior to the announcement.
Responsible Wagering Australia (RWA), which counts among its members Sportsbet, bet365 and Unibet, has lambasted the new measures announced by the regional government.
CEO Justin Madden said: “It’s extremely concerning to see the NSW government cave into another backroom campaign to deliver a single operator such a clear market advantage with little consultation with the wider industry.
“Increasing PoC taxes and handing out ‘sweetheart deals’ is not a victimless process – especially when these deals are agreed behind-closed-doors. Ultimately, it will be the people racing employs and punters who will pay the price,” he added.
Tabcorp MD and CEO Adam Rytenskild retaliated to these claims, arguing that the changing makeup of the Australian gambling industry has paved the way for these changes.
The betting habits of Australians have changed markedly in the last couple of years with online wagering consisting of 73.7% of all bets placed now compared to 43.6% in 2019.
Rytenskild said: “Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and ensures a fairer system.
“Online betting has changed substantially since the TAB’s licences were issued and this is an opportunity to better align with the modern economy,” he added.
The news comes just weeks after Queensland also increased its PoC tax from 15% to 20%.