Anger at size of Queensland’s point of consumption tax on wagering

ONLINE wagering trailblazer Matt Tripp says returns to the Queensland racing industry will plunge and has tipped punters’ wagering conditions to be “materially worsened” as a direct result of the State Government’s decision to run with a 15 per cent point of consumption tax.

Queensland’s stance to stick with a 15 per cent rate was magnified on Wednesday when NSW confirmed it would be charging POC at 10 per cent.

Victoria locked in 8 per cent last month.

Tripp, who built the Sportsbet brand in Australia and sold to Paddy Power before his current role as chief executive of CrownBet, described the Government’s move as “another kick in the guts” to Queensland racing.

“Queensland would be best served by a rate that was lower than, not twice as high as, Victoria given comparative the size and strength of the Victorian population and racing industry,” Tripp said.

“A rate anywhere near 15 per cent would see Queensland punters’ wagering conditions materially worsened through poorer odds, fewer promotions and less investment in technology and innovation.

“This will drag down the more-than $70m Racing Queensland obtains through race information fees and represent another threat to the sustainability of the three codes.”

He said CrownBet wants to work with the Government and Racing Queensland to avoid these outcomes and continue supporting the industry.

Rival wagering provider Tabcorp said it has no plans to change its product offering in Queensland as a result of the tax.

“Tabcorp supports the introduction of a point of consumption tax in Queensland, following similar steps taken by other state governments,” General Manager Corporate Communications Nicholas Tzaferis said. “The point of consumption tax addresses the growth in largely untaxed online wagering through corporate bookmakers.”

Treasurer Jackie Tradd has given no undertaking as to what proportion of the predicted $71 million in revenue the Queensland racing industry would receive as a result of the new tax, which is in stark contrast to her NSW counterpart Dominic Perrottet.

The NSW Treasurer told The Australian “we want to make sure that the racing industry is no worse off under these changes” and the reason for committing $40 million (of a forecast $100 million) to the three racing codes.

Perrottet said a 15 per cent tax on top of GST and race-field fees would be “an excessive burden” on players in the market and that the 10 per cent rate would be reviewed in 18 months.

Stephen Conroy, Executive Director of Responsible Wagering Australia, which represents a number of the big corporate bookmakers, slammed both the Queensland and NSW rates and said the new taxes would make it “very difficult for RQA members to continue to service NSW and Queensland residents” and their ability to support the three codes in those two states.