Australian online bookies face new taxes, bonus restrictions

Australian online sports betting operators are facing new taxes and promotional restrictions as state governments continue efforts to rein in the nation’s only authorized online gambling activity.

On Thursday, the state government in Western Australia (WA) unveiled its latest budget, which included a 15% point of consumption tax (POCT) for online bookmakers who generate revenue from WA punters. The new tax, which will take effect January 1, 2019, makes good on a promise the WA government announced one year ago.

South Australia was the first Aussie state to introduce an online POCT, based on its belief that Northern Territory-licensed online bookmakers weren’t paying their fair due. This view was supported by domestic operators Tabcorp and Tatts, who have a physical presence across Australia and thus face a much higher tax burden.

The Responsible Wagering Australia (RWA) industry group protested WA’s plans, claiming that a go-it-alone approach will complicate the federal government’s plans to develop a national POCT policy.