Racing Victoria concerned about POC tax changes

Racing officials in the Australian state of Victoria are concerned that increased taxes on digital betting could hit funding for the sport.

South Australia, Western Australia and Queensland have introduced point of consumption taxes, with Victoria and New South Wales expected to follow suit.

The changes are expected to increase the tax burden on betting companies, many of which are currently based in the low-rate Northern Territory.

Racing Victoria chief financial officer Aaron Morrison said there are concerns that companies could slash their marketing and sponsorship budgets should taxation become too onerous.

According to the Sydney Morning Herald, he suggested that few operators were profitable enough to absorb huge rises in taxation.

“The risk we see is that if the corporate bookmakers are all of a sudden faced with an increase in their cost base because of the introduction of a new tax, what are they going to do, how are they going to respond?” he said.

“Anything that's going to negatively impact on wagering turnover … is going to present a real risk for us.”

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