South Australia eyes $9M in revenue with landmark tax for betting agencies

Gambling companies that allow South Australians to wager will be hit with new tax starting 2017, local media outlets have reported.

The state government is planning to introduce a 15 percent “place of consumption” tax, as part of the National Tax Reform process, on “the net wagering revenue of all betting companies offering services” in South Australia, according to abc.net.au. This means any bets placed in the state with Australian-based gambling companies will be subject to the tax.

The tax applies to betting on horse, harness and greyhound racing, as well as sports betting such as AFL, cricket and soccer, election-related punting and even the Academy Awards, said state Treasurer Tom Koutsantonis.

This is the first time a state government in Australia will tax betting companies based on where the wagers are placed. South Australia-licensed bookmakers, such as UBet, authorized interstate betting operators, and corporate bookmakers like Sportsbet and Ladbrokes are usually taxed based on where their offices are located.