Online bet jobs at risk

States back Morrison in tax grab on NT bookmakers

THE Northern Territory’s status as the country’s premier online licensing jurisdiction, and the 350 jobs that go with it, are under further threat following an agreement between the federal Treasurer and state counterparts.

Lost among last week’s GST controversy was the states ganging up against the Northern Territory by agreeing to work towards harmonising state-level online sports betting point-of-consumption taxes (POCT).

The bulk of Australia’s online betting operators are licensed in the Territory and it means wagering businesses here could face higher tax bills amid the push to tax online bets in the jurisdiction in which they are placed, not where the company is headquartered.

Treasurer Scott Morrison has agreed to work with state counterparts “to move forward to prepare a proposal for a nationally consistent approach to a point of consumption tax on online gaming”. As a starting point, they will look at South Australia’s new regimen, which from July 1 will tax net wagering revenue at 15 per cent.

Mr Morrison has not revealed when the POC tax may be introduced, but if it is, it will cripple NT as a licensing jurisdiction. Corporate bookmakers, including Sportsbet, Ladbrokes, bet 365, betfair and Unibet are opposed to a POC tax.

The Northern Territory Government has vowed to fight against the agreement, saying the proposed tax is an attack on Territory jobs.

“This government will fight it all the way,” a spokesman for the Treasurer’s office said.

“More than 350 Territorians are employed by corporate bookmakers, injecting millions of dollars into the local economy.

“If the proposed tax goes ahead it would remove the Northern Territory’s competitive advantage as the home of corporate bookmaking in this country.”

The Territory has carved out a niche by offering operators an attractive tax regimen but the states have accused the NT of depriving them of “their” gambling tax due.