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South Australia puts new tax on corporate bookies

South Australia puts new tax on corporate bookies

ADELAIDE: The South Australian government will hit betting agencies with a new tax that is expected to raise more than $9 million a year.

The SA government has decided to introduce a 15 percent tax on net wagering revenue that will apply to bets made in South Australia.

The UK imposed a 15 percent tax on all online gambling profits generated in the region in 2015, which is being fought by gambling companies in the Court of Justice of the European Union.

Denmark received European Union permission to impose a 20 percent tax rate on gross online gaming revenue in 2014.

South Australia’s plan will make it the first Australian state to tax betting companies on the place of consumption of their services rather than the location of the wagering operator’s licence.

SA treasurer Tom Koutsantonis said the plan would include all racing codes, sport and bets such as those on elections or Academy Awards.

“The betting industry is rapidly changing and our tax regime needs to change with it,” Mr Koutsantonis told the ABC.

“If betting companies are making profits from South Australian punters they should be paying tax in South Australia, not in whichever jurisdiction their head office and servers happen to be located.” The SA government proposed a $150,000 tax-free threshold for all agencies.

South Australia’s Gamblers’ Rehabilitation Fund will receive the first $500,000 collected each year.