This week industry organization Clubs Australia urged the Australian government to ban the expansion of online betting in the country as well as restrictions on in-play betting and a point of consumption tax on offshore operators.
Clubs Australia represents more than 6,500 betting firms in Australia and is in competition with offshore sites such as Paddy Power, Ladbrokes, and Bet365, which the group feels is cannibalizing retail betting sites. The group feels that Australia should follow the United Kingdom by charging offshore betting sites a 15% tax on profits generated by Australian clients.
In their submission to the government Club Australia wrote: "In Clubs Australia's view, Australia's licensed online wagering operators have used the pretense of competition with illegal offshore wagering providers to extract a range of regulatory concessions from governments with respect to taxation and harm minimisation. Any suggestion that further regulatory concessions, such as live in-play betting, are warranted due to competitive pressures from illegal offshore wagering operators should be dismissed."
"Clubs Australia understands online wagering operators located in the Northern Territory paid only $7 million in wagering tax in 2014-15 on gambling turnover of $9.7 billion. By comparison, Clubs would pay in the order of $200 million in gaming taxes on a similar level of turnover," the group concluded.