Victoria To Raise Taxes On Online Gambling

Victoria To Raise Taxes On Online Gambling

Victorian Commission for Gambling and Liquor Regulation, as well as the Australian state of Victoria are getting ready to impose new taxes on online gambling next year. The state’s Treasurer, Tim Pallas, has introduced a new burdening proposal that sees a raise in 8% of the net wagering value, which should provide an additional $22.6 million to build hospitals, schools, fight problem gambling, and even ban certain foreign, as well as domestic operators.

At this point, Australian online casinos that can be accessed from within Victoria do not bear the cost of uniform tax rates, as such fees would represent a discriminatory of domestic operators and give foreign gambling sites superiority. Additionally, much of the taxes are diverted away from the State’s Government, which is the reason why Pallas proposed the legislation.

The new tax proposition must pass in the legislature’s upper house, before coming into effect in January 2019. Similarly, Western Australia is also working on the same levy, only at a 15% rate. Operators will also be obliged to determine the location of players that are accessing their site, so that each online bet can be successfully tracked.

However, owners of online gambling sites in the land down under have gathered behind the Responsible Wagering Australia group to discuss the financial aspects of a 15% levy. Allegedly, large industry corporations such as AHA (Australian Hotels Association) and Tabcorp disagree with the state’s decision to equal tax rates with those in other Australian states, due to already high expenses. Nevertheless, Tim Pallas, is convinced that a tax raise of 8% is a fair compensation for online gambling services, which are effectively avoided in terms of paying to the state – an unfair relationship that has to be stopped.

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