RWA sets record straight on massive growth in tax and racing contributions
Following RWA’s announcement that its members will move to develop technical solutions to ban the use of credit cards across member online platforms, the organisation has written again to the Parliamentary Joint Committee on Corporations and Financial Services to correct the record on evidence provided by traditional retail betting operator Tabcorp, following its appearance this week before a Parliamentary hearing.
During evidence given by Tabcorp, inaccurate imputations were made regarding the taxation and regulation of online wagering service providers licensed by the Northern Territory Government.
RWA members pay significant amounts of gambling tax in every state and territory and make significant payments to racing and sporting codes. Last financial year, the members of RWA paid $1.428 billion in taxes and legislated fees in Australia.
Over the course of Financial Years 2017/18 to 2020/21 the amount of gambling taxes and GST paid by the members of RWA increased by 497.0%. According to Tabcorp’s Annual Report over the same period their “taxes, levies, commissions and fees” paid by their wagering and media arm only increased by 8.0%.
Over this same period, the contributions paid to the Australian racing industry by RWA members increased by 130.0%, while Tabcorp’s contributions increased by only 13.0%.
RWA highlighted that Tabcorp’s licensing by multiple jurisdictions is an arrangement that delivers significant commercial advantages. This includes monopoly rights over specified products and services in those jurisdictions, for example the ability to operate retail betting facilities, including in the Northern Territory.
The Parliamentary Joint Committee on Corporations and Financial Services Inquiry into credit card betting has taken evidence and is now preparing its final report to government. More information on the Inquiry can be found here.