Tabcorp Holdings Limited (Tabcorp) has hailed the NSW wagering tax adjustments announced in the State Budget for 2022/23 as a significant step forward in the industry’s restructuring.
The NSW Government today announced adjustments to NSW gambling taxes that will take effect on July 1, 2022, including a 10% to 15% rise in the Point of Consumption Tax (POCT) rate payable by betting operators. Tabcorp will get transition payments over an 18-month period following the start of the adjustments to guarantee that it is ‘no worse off’ in terms of its present tax responsibilities.
Tabcorp applauds the government’s statement that it will evaluate the wagering tax system, regulation, and funding in the coming years. During this time, Tabcorp expects to continue fighting for additional industry reform and a level playing field. Tabcorp’s EBITDA would have been about $16 million lower if these NSW wagering tax increases had taken effect without the transition payments in calendar year 2021 NSW revenues.
Tabcorp Managing Director and Chief Executive Officer Adam Rytenskild welcomed the announcements as continued progress to reform the wagering industry. “Today is a positive step forward in levelling the playing field in NSW. Online bookies will pay a greater share of wagering tax which can be invested back into the local racing industry and
ensures a fairer system,’’ he said.
“We welcome the NSW Government’s announcement. Online betting has changed substantially since the TAB’s licences were issued and this is an opportunity to better align with the modern economy. The Queensland Government has recently announced reforms to create a level playing field and NSW is now a step closer to a level playing field.”