Report: Responsible Wagering Australia slams Queensland tax increase decision
Australia’s main body for online bookmakers claims the new tax could strip A$1.75bn from the state’s racing revenue
Responsible Wagering Australia (RWA) CEO Justin Madden has stated that the 15% to 20% tax increase in Queensland would severely disadvantage its members.
In a report by The Guardian, RWA stated the government did not account for measures operators may take that could pull A$1.75bn (£970m) from the state’s racing revenue.
Madden said the Queensland’s treasury projection, that Racing Queensland will receive approximately A$80m in revenue, was inaccurate by at least A$50m.
He said: “The major policy decision was announced without any prior consultation whatsoever with RWA or our members and follows, we understand, 40 meetings between the government … [and] Tabcorp.
“As a consequence of this lack of full consultation with industry, the decision was regrettably taken with an absence of key facts about the economics of wagering and racing in Queensland.
“It’s also a belief that, if all major corporate wagers [had] made their own decision to fully mitigate the cost of the Queensland government’s decision, somewhere in the order of $1.75bn in Queensland racing turnover would be lost just in the next two years,” Madden concluded.
When the tax increase was announced in June, Tabcorp looked favourably on the deal, commending the Queensland government for “delivering fair and much needed” reform.
The operator reiterated this stance when the decision was made on Monday, saying that it had fought rivals with “an arm tied behind its back”.
Tabcorp will be better off from the reform, as it will cancel its agreements with the RWA, meaning the company will pay a lower proportion of revenue to the industry and state government.
The pushback from Madden came after a number of operators changed their strategy in the region as a result of the tax increase.
Ladbrokes called off a $7.5m sponsorship deal with Brisbane Broncos and took Queensland horseracing off its prominent place on its app.
Flutter Entertainment owned-Sportsbet also pushed the state’s races on its mobile app but has reversed this decision following a deal with Racing Queensland.