NSW launches consultation on POC tax

A nationwide POC tax in Australia came a step closer to reality yesterday as the NSW Government launched a consultation on the introduction of the tax.

A POC tax is already in force at 15% of revenue in South Australia, while Western Australia and Queensland have committed to follow suit, and Victoria is expected to make similar movements.

“Other states and territories have changed the way they tax wagering following the rise of online betting, which is something we are also considering here in NSW,” Treasurer Dominic Perrottet said.

“At this stage, we want to get a better understanding of how such a change would operate and whether it is the right move for NSW, so we want all interested parties to have a say,” Mr Perrottet said.

A discussion paper is available for comment at https://www.treasury.nsw.gov.au/reviewwagering-taxation and NSW will soon begin consultation with stakeholders for a four week period.

The tax would charge operators based on where the bet is placed rather than where the operator is licenced.

The rollout of such a tax has been well flagged, and was one of the key reasons William Hill sold off its Australia business.

Scale is considered a key factor in firm’s ability to weather the increase, with Paddy Power Betfair saying yesterday, it was well placed to handle a POC tax.

“Sportsbet is in a good position to withstand increased taxes and benefit from any market consolidation,” the firm said.

Sportsbet 2017 revenues climbed 21% to £404m, while EBITDA 49% to £139m.