The Australian state of Queensland will introduce a significant increase to the taxes that corporate sports betting companies pay. This was announced by the state government today.
Queensland Levels the Playing Field
Queensland’s vision is to change how racing is funded. To that end, a new 5% racing levy will be introduced. This adds to the Point of Consumption tax that bookmakers currently have to pay. Also, the POC itself will now include free and bonus bets as well.
Meanwhile, the government decided to increase the portion of the tax revenue that funds the racing industry. As per the new rules, 80% of the taxes (previously 35%) will go directly to support professional racing.
Cameron Dick, Queensland’s treasurer and minister for trade and investment, shared the government’s reasoning behind the changes. He noted that the industry has been relying on short-term government funding programs for too long. Now, it is time to provide it with the certainty it needs. Dick added that as “the size of the pie grows, so too will the industry’s share.”
Providing longer-term funding certainty means opportunities for increased prize money, enhanced infrastructure, and better training facilities – and the more the industry grows, the more revenue it will receive.
Cameron DIck, minister for trade and investment, treasurer, Queensland
Tabcorp, Australia’s largest gambling company, welcomed the changes. The firm has provided substantial funding to the local racing industry for almost a decade now. Thanks to the new rules, foreign companies will also provide the local racing industry with the fair share it deserves. Additionally, Tabcorp will no longer hold on-course sponsorship and advertising exclusivity.
Ignazia Graziella “Grace” Grace, minister of racing for Queensland, said that the new funding format will offer much more sponsorship opportunities for the 125 local racing clubs. She also noted that Tabcorp agreed to offer $50 million to improve racing infrastructure and donate $100 million to Racing Queensland.
Lastly, Adam Rytenskild, the Tabcorp’s managing director and chief executive officer shared his thoughts on the matter:
The Queensland Government and Racing Queensland have backed Australian-made and implemented fair reforms that put Australia and Queensland first. This is a big shot in the arm for the Queensland racing industry – it is also great for TABs in pubs and clubs, and great for punters right across Queensland.
Adam Rytenskild, managing director, CEO, Tabcorp
While Tabcorp will no longer be the exclusive sponsor of the local racing industry, it will retain retail exclusivity.
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