In Australia, liberal gambling laws make the nation attractive to foreign companies that are particularly encouraged by laws relating to the interactive betting sector.
The Australian government could raise millions by taxing online pokies operating from overseas and from within. Conventional gambling locations such as race tracks for horse racing, greyhound racing harness racing and even human racing at the Stawell Gift event each year are taxed.
People in Australia are not taxed on their winnings and as a result, up to 80% of adults have gambled in some form during their lives. With an increase in the use of mobile devices that easily access online gambling sites, Australians are able to access a vast range of online sports betting options.
There is no doubt that State and federal government stand to make considerable additional revenue if they tax online sports betting. It could make millions each year.
State and federal governments levy a range of taxes on income earned from land based casinos and pokies venues but tax opportunities are in many ways being lost on inadequate tax collection on businesses operating online pokies and sports betting.
Gambling winnings are not taxed as gambling for most people, is not a business; it is a hobby or recreational pursuit.
It was reported on 24 Sep 2015 by the ABC that gambling income is growing.
"Crown Perth generated gaming revenue of $835 million in 2014-15, according to the Gaming and Wagering Commission annual report tabled in State Parliament."
Source: http://www.abc.net.au/news/2015-09-24/crown-perth-gaming-revenue-up-despite-fall-in-visitor-numbers/6800264
Get more information on online pokies at pokiespalace.com.au
Taxation laws on gambling in Australia
Courtesy Wikipedia
Gamblers' winnings in Australia are not taxed. There are 3 main reasons for that:
- Gambling is not considered a profession, it's treated as a hobby or recreational activity.
- The Australian government views gains from gambling activities not as income, but as a result of good luck. Even if someone wins big, they also lose a lot in other gambling sessions.
- The government taxes gambling operators instead.[19]
Taxation of gambling operators in Australia differs from state to state and different gambling services are taxed in a different way. There are taxes on the turnover, on player loss and net profit. As gambling operators need to obtain a license to offer their services, certain fees must also be paid at this stage of gambling business development.[20]
| Forms of taxation | Gambling Activity |
|---|---|
| Turnover tax | Bookmakers (racing) |
| Bookmakers (sports betting) | |
| Totalisator wagering on racing | |
| Lottery subscriptions | |
| Draw card machines | |
| Keno | |
| Tax on player loss | Totalisator wagering on racing |
| Sports betting | |
| Poker machines in hotels, clubs, casinos | |
| Casinos | |
| TAB sports betting | |
| Keno | |
| Net profits tax | Poker machines |
| Off-course totalisator investment | |
| Licence Fees | Casinos |
| Poker machines | |
| Lotteries | |
| Racing | |
| Bookmakers | |
| Sports betting | |
| Minor gambling (bingo, raffles) |
