This will harmonize the tax rates of online operators doing business within the province with totalisator operator Tabcorp, with opinion split within the two. Tabcorp, the Australian totalisator board, argues that the differing tax rates represent an unfair competitive advantage for the online sector.
In addition to the increase, there are plans to broaden the betting tax to include free and bonus bets. There is also an increase in the proportion of betting tax revenue that goes directly to the racing industry from 35% to 80%.
Adam Rytenskild, Tabcorp chief executive officer, commends the Queensland government for delivering fair and much-needed reforms that bring the wagering market into line with the modern economy.
However, the online betting sector does not share the optimism of the TAB. Responsible Wagering Australia (RWA), the online industry trade body, is “disappointed” with the move and argues that the increase was introduced without consultation for the online wagering industry.
RWA believes that such significant tax changes unfairly entrench the monopoly enjoyed by established and land-based wagering service providers at the expense of the new and emerging online industry. It will lead to serious impacts on the Queensland racing sector and jobs, while disproportionately affecting punters who choose online options.
In addition to the announcement, Racing Queensland and TAB have come to a settlement ending the legal battle between the two since 2019. The dispute was concerning the calculation of fees paid by TAB since the introduction of the POCT in 2018.
Cameron Dick, Queensland treasurer and minister for trade and investment, argues that the move will be a boost for Queensland’s historic racing sector. He emphasizes the importance of race meetings to the social fabric of Queensland, especially in the 85 racing clubs where a race meeting is the biggest or second biggest event in their community each year.
