There is no denying that online gambling is becoming hugely popular in Australia, especially at offshore websites. Since the federal government has yet to take action in legalising online gambling within the country, states are taking the matter into their own hands. South Australia is one such state, as local politicians are considering introducing a new point-of-consumption tax.
One of the main reasons for introducing the tax is to reclaim some of the gambling profits that local clubs and casinos are losing to online casino sites. Profits from pokies and casino games help to fund a wide range of community projects, and this source of funding is beginning to dwindle as players choose to wager online instead of at land-based venues.
This would mean that casino operators would have to pay the local gaming commission in order to offer their services to SA players. Currently, they only pay a ‘point of supply’ tax, which goes to the jurisdiction in which the operators are licensed. Another option would be to reform local gambling taxes on clubs; however, club owners and members of the industry are not pleased with this option.
Many industry professionals have stepped forward to voice their opinions against the introduction of tax reform, which would increase the amount of money that clubs pay to the local government. They also argue that higher tax rates would result in less money being distributed to the local community in the form of grants.
"Obviously, if the tax goes up, we have less money for our clubs and the clubs can't distribute that money to its members and to the community itself," says Clubs SA Chief Mike Penfold.
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