WA Punters to bear the burden as State Government Plans Betting Tax

In order to stop the loss of wagering money to online companies, the state Government is planning to impose a tax on WA punters.

The move came in movement after the State-owned TAB survived severe losses because of the online betting agencies. The Racing and Gaming Minister Paul Papalia in a statement disclosed that the government in almost set to plan a point-of-consumption tax on unibet agencies.

This tax will be applicable on all betting agencies that allow betting in WA on racing and sporting events and outcome of political elections. There would be a fixed percentage of revenue set for taxation.

The plan for taxation:

This will start from South Australia as the state would roll out the tax-on-sale system with effect from next month. Minister Papalia confirms that the government is keen to roll the system in the entire nation as soon as possible.

According to the SA’s model, the government will charge 15 per cent of the net wagering revenue raised by the companies. The government expects SA’s model to earn $9.2 million in a year.

Why a tax on online betting companies?

Last year was worse than any before for TAB as the organization faced cutthroat competition from many private online betting companies. Some names that were the biggest threat to TAB include Bet365, CrownBet, William Hill, etc. Considering this Mr. Papalia proposed the tax model plan would prevent tax- payers from shifting their liabilities to low-jurisdictions like Northern Territory.

TAB is an organization that helps in funding racing and other growing sport by redistributing money in wagering revenue to different facilities & clubs.

It needs to happen in every State,” Mr. Papalia said in a statement. “If that’s done then that breaks the NT’s model, where the guys go and base themselves and there’s diminishing returns to the State.

What will happen is where you bet, that location will receive the revenue. It needs to be led by the Federal Government and introduced nationally.

I think it’s a good idea. But it would only be in the event there is a net return to the State, and I’m told there is.”

Mr. Papalia has instructed a detailed assessment of the tax plan which indicates his approval in the scheme.

He also adds that before planning on any action (selling TAB) he would like to check the sustainability & sturdiness of the industry.

In WA, as in other States, the TAB helps fund the racing industry and grassroots sport by redistributing tens of millions of dollars in wagering revenue to clubs and facilities.

“It needs to happen in every State,” Mr Papalia said. “If that’s done then that breaks the NT’s model, where the guys go and base themselves and there’s diminishing returns to the State.

“What will happen is where you bet, that location will receive the revenue. It needs to be led by the Federal Government and introduced nationally.

“I think it’s a good idea. But it would only be in the event there is a net return to the State, and I’m told there is.”

The Labor has plans to sell the TAB if it comes in power whereas as per Shadow Treasurer Dean Nalder Liberal Party is in support of Tax on online eurobet companies.