P.O.C. taxes from January 1, 2019 in New South Wales, Victoria, Western Australia and the Australian Capital Territory
New remote point-of-consumption (POC) betting taxes, in force today, January 1, 2019, in the Australian regions of New South Wales, Western Australia, Victoria and the Australian Capital Territory, are expected to drive consolidation in the online gambling industry.
Foreign bookmakers expected to feel the pinch include Ladbrokes, Bet365, Sportsbet and BetEasy, the Sydney Morning Herald (SMH) opined, saying the POC tax lobby, driven by TAB operator Tabcorp and WA Pubs, will level the playing field.
“Yes, the landscape is going to change with point-of-consumption taxes – that will sort itself out over time,” Adam Rytenskild, head of wagering for Tabcorp, said. “We plan to be competitive and we plan to be providing great offers to our customers going forward.”
In related news, the Western Australia Government will move ahead with the privatisation of the state-owned TAB in 2019 for an estimated price tag of around A$500 million.
According to SMH, an inside source indicated Tabcorp, Sportsbet (owned by Paddy Power Betfair) and BetEasy (affiliated to The Stars Group) are expected to be the likely bidders but they won’t receive support from Australian industry associations such as WA Pubs.
“In our mind there can really only be one successful tenderer from an industry point of view, and that’s Tabcorp, because they have the runs on the board already,” Bradley Woods, chief executive of the WA branch of the Australian Hotels Association said in the SMH report.
“I don’t think it’s in the WA government’s interest to gamble with an unknown operator just because they might come up with some sort of whiz-bang submission. The government needs to be assured and confident in getting the best outcome for the state.”