Australia’s Northern Territory raises annual tax cap for bookmakers

Responsible Wagering Australia Criticizes Northern Territory’s Increased Tax Burden

The Northern Territory government has unveiled significant changes to its tax framework for corporate bookmakers and betting exchanges, raising the annual tax cap to align with its upcoming 2025-26 budget. This increase is projected to generate an additional AU$13.1 million (approximately US$8.4 million) in taxable income annually, reflecting a substantial shift in the landscape of online gambling taxation.

Effective July 1, 2025, this revision to the Racing and Wagering Act 2024 will see the annual cap soar from one million revenue units to two million. As a result, the Northern Territory anticipates that its taxation revenue from bookmakers will reach AU$32.6 million and AU$2.9 million from betting exchanges in the 2025-26 fiscal year.

In tandem with this tax modification, a uniform 50% tax rate for all internet gambling licensees is set to take effect on the same date. This new regulation will supersede existing tax agreements with licensed operators, boosting annual tax earnings by an additional AU$17.7 million. Combined, these measures are expected to propel total gambling tax revenues to an estimated AU$145 million for 2025-26, marking a 25.5% increase compared to the previous year. Notably, the taxation rates for community gaming machines, lotteries, and community benefit levies will remain unchanged.

Industry Response: Responsible Wagering Australia Voices Concern

The proposed tax increase has faced backlash from industry stakeholders, particularly from Responsible Wagering Australia (RWA). They express concern that this sweeping change could disrupt the market landscape without sufficient industry consultation.

“We engaged meaningfully in the review process, anticipating a comprehensive strategic vision for the racing sector in the Territory,” stated RWA CEO Kai Cantwell. “This decision has taken our wagering service providers by surprise.”

RWA remains committed to advocating for a regulatory environment in the Northern Territory that prioritizes consumer protection while fostering a robust business ecosystem conducive to local investment.

Delayed Publication of the Racing Industry Review

Compounding concerns, the RWA highlighted that the tax hike follows the government’s delay in releasing its Racing Industry Review, commissioned to identify sustainable strategies for the future of wagering and racing in the region.

“This approach signals that genuine consultation and industry sustainability are being sacrificed on the altar of immediate revenue gains,” Cantwell added. “Instead of enacting blunt tax increases, the government should collaborate with industry leaders to explore growth opportunities that will ensure the Northern Territory’s status as a premier licensing jurisdiction.”

Responsible Wagering Australia is urging both the Treasurer and Chief Minister to reconsider this tax strategy and foster an open dialogue with industry stakeholders before implementing any changes.

In summary, the Northern Territory’s tax adjustments represent a critical moment for the gambling sector, requiring careful navigation to balance revenue generation with industry sustainability and stakeholder collaboration.