Added: September 8, 2016
If you are like quite a number of fans from Australia who are quite fond of online gambling sites in all their many forms and variations, you need to know and understand what is in store for you in the very near future. Here’s your first clue as to what this is all about. None other than the widely renowned online gambling site operator Sportsbet was quoted as saying that “the government wants to punish punters with a tax grab.”
Moreover, Sportsbet went on to make the case that with the new so-called tax that is scheduled to take effect in 2017, South Australia is about to become known as “…the most expensive place to wage a bet…”. Ouch! Is that true? Sadly, yes it is in fact true.
If by chance you missed the media stories on this new punitive tax, here is what you need to know. In an apparent shift in strategy, the State Government of South Australia has a new law on the books that will extract a 15% tax on the net wagering revenue of all betting companies offering their services to residents of South Australia.
Pay close attention to the fact that this is in fact the first time that a tax will be imposed on where the wagers are placed. For the record, the previous law only imposed taxes based on the actual location of the betting company itself. In other words, this new tax or revenue grab if that term is more appropriate, is aimed at bringing in additional revenue to the state Treasury. In fact, none other than the Treasurer himself, Tom Koutsantaonis had this to say: “these betting companies should be paying tax in the state, not just in whichever jurisdiction their head office and servers happen to be located.”
Get this: this new wagering tax grab is expected to bring in no less than AU$9.2Million next year. On the other side of this issue, it is helpful to take a look at the response from Sportsbet. Sportsbet has gone on record stating that this new punitive wagering tax will have the effect of ensuring that South Australia is the most expensive betting location in the world. And, perhaps of even more importance, Sportsbet points out that another effect of this tax will be to shorten the odds for wagers placed in South Australia.
As you can clearly see from the above, the government of South Australia looks to be aiming to upend online gambling as you know it today. Stay tuned to see how this plays out between now and next year when this revenue grab is scheduled to go into effect.
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