Australia’s Northern Territory doubles annual tax cap for bookmakers
The Northern Territory government in Australia has announced that the annual tax cap for corporate bookmakers and betting exchanges will double, with the increase expected to generate AU$13.1 million (US$8.4 million) in additional tax income each year.
Announced as part of the 2025-26 budget, the increase will take effect on 1 July this year. The Northern Territory government will amend the Racing and Wagering Act 2024 to reflect the new cap.
The annual tax cap will be set at two million revenue units, up from the current level of one million. As such, the government expects bookmaker tax income in 2025-26 to rise to $32.6 million. Betting exchange tax is set to reach $2.9 million.
Alongside this tax increase, a uniform 50% tax rate has been placed on all internet gambling licensees. This is also due to come into effect on 1 July and will override existing agreement-based tax setting for licensed operators. The government said this will raise an additional $17.7 million in tax per year.
In total, gambling tax for 2025-26 is forecast to reach $145 million. If this is the case, it would be 25.5% more than in 2024-25. Community gaming machine tax, lotteries tax, community benefit levy and wagering tax all remain unchanged for 2025-26.
Responsible Wagering Australia ‘blindsided’ by tax increase
However, the budget has been met with criticism from some quarters.
Responsible Wagering Australia was particularly critical of the annual tax cap increase, saying it will shock the market. The RWA noted the decision has been made without any industry consultation.
“RWA have participated meaningfully in the review and eagerly anticipated a new strategic vision for racing in the Territory,” RWA CEO Kai Cantwell said. “This decision has blindsided wagering service providers.
“We will continue to advocate for a licensing environment in the Northern Territory that upholds the highest standards of consumer protection while also incentivising business to invest in the local economy.”
Northern Territory yet to publish racing review
The RWA also said the change precedes the final report of the government’s own Racing Industry Review. This was commissioned to inform long-term sustainability settings for wagering and racing.
“It sends a message that consultation, process and industry sustainability have taken a back seat to short-term revenue grabs,” Cantwell said. “Rather than imposing blunt tax increases, the government should be working with industry to identify growth opportunities that will ensure the Territory’s continued leadership as a licensing jurisdiction.
“We are calling on the treasurer and chief minister to reconsider this decision and to engage in genuine consultation with the industry before moving forward.”