Sportsbooks in SA Fight Back against the Proposed Tax
There is a pioneering move in South Australia that is aiming to tax the internet gambling firms, on their revenue that is earned due to their business within the borders of the state. This might look like a simple burden on the 10 billion dollar a year industry. On the other hand, the big players in the industry know that a defeat in this situation is going to set a national precedent, and this is why they decided to launch a counter attack.
There have been full page ads in the nationwide spread broadsheet in Australia, The Australian. This advertisement most likely cost more than 50 thousand dollars. This advertisement carried, what it claimed to be an urgent message to all of the punters in South Australia, regarding the punters tax. The ad also claimed that this will mean worse odds on the game, and less promotional offers, which will result in less money in the punters’ pockets. This campaigns aims to flood the SA MP’s offices with demands and calls to scrap this tax. Cormac Barry, the head of Sportsbet stated that he has the data base of more than 100k SA customers, which is almost six percent of the population of the state, which he can call on for support.
This new tax, which is the 1st of its kind in any Aussie jurisdiction, will tax companies depending on the place of the service, rather than where the companies are located. This new tax would take 15% of the net revenue. It is expected by the SA government that this new tax would reach 9.2 million dollars a year.
In one move, the government of Weatherill is going to manage to earn almost the same amount from gambling, like the NA jurisdiction, which has tax laws that tax the gross national revenue of most of the corporate bookmakers in Australia.
The names that are backing such advertisements campaigns against the new SA taxes include companies that are owned by multinationals that are based in offshore havens, which are lured by the low tax rate on the wagering revenue in the Northern territory, which has a maximum of 550k dollars per operator.
According to statistics, the wagering companies paid almost 10 million dollars in taxes as well as levies on their $937 million gross revenue, from $9.7 billion dollars turnover for the 2014-2015 period. This means that while the taxes of NT rose by $600 over the course of the last 3 years, the gross revenue of the companies was nearly multiplied by x2.