Across the gambling markets in Australia and New Zealand, a major concern is the issue of offshore gambling. Casino operators from international locations have been cashing in on gaming revenue from local players without paying taxes– and, now a new law will ensure that they pay their fair share. A report in The Australian notes that South Australian lawmakers have passed new regulations for offshore operators.
The state government will be able to tax online gaming companies based on where their players are located rather than where the company is. As such, South Australia will be able to rake in an additional $50 million in gaming taxes every year. Across the state, there are over 70 000 punters who wager on nearly 20 different betting sites that do not pay taxes in SA.
This new law will rectify that issue to ensure that state coffers can obtain their rightful gaming revenue in order to fund various public programs. All local gaming organisations have shown their support of the plan, including Clubs SA, the SA Council of Social Service and the Australian Hotels Association.
“South Australian clubs and pubs pay their fair share of gambling taxes which go towards providing essential State Government services,’’ Mr Koutsantonis said.“It is important that online gambling operators pay taxes considering that they are generating profits based on betting activity of South Australians.” The new rules will require online gaming operators to pay a $1500 fee to operate in the state.
They must receive authorise to advertise and offer their services to local players. Operators must report how much of their business takes place in South Australia, and will be required to pay taxes accordingly. There is potential for this regime to work on a national basis. So, we could see a similar plan rolled out across other Australian states.
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