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Australian Gambling Companies Team Up To Fight New Taxes

Monday August 1,2016 : AUSSIE ONLINE GAMBLING OPERATORS COMBINE TO FIGHT SOUTH AUSTRALIAN TAX
 
National campaign planned to fight place of consumption tax.
 
Australian online gambling companies that usually compete against one another for business are planning to collaborate in fighting a common problem - the imposition of the South Australian governments proposed new place of consumption tax.
 
The South Australian tax proposal was introduced by state treasurer Tom Koutsantonis recently, with a plan to implement from July 1 2017.
 
The proposal calls for a tax of 15 percent on net wagering revenue targeted on firms that earn more than A$150,000 a year and offer services to South Australians.
 
Importantly, the proposal emulates the British concept of taxing transactions based on where the bets are placed (ie the punters devices) instead of where the betting company accepting the bet is registered or located.
 
The campaign being planned by online gambling operators will seek to mobilise the players themselves, urging them to protest to their political representatives.
 
Sportsbet chief executive Cormac Barry told The Australian newspaper that he plans to write to his more than 100,000 South Australian customers to warn against the tax.
 
“When the South Australian Treasurer refuses to engage with us in any real sense we are left with little choice but to take the fight directly to the public,” he said. “We’ll continue to ramp up the pressure until we get this tax scrapped.”
 
Barry said that the tax proposal was a surprise for operators, and that the provincial government had not consulted with the industry before announcing it.

He noted that if implemented it will make South Australia "the highest taxed online wagering environment in the world.”
 
“Operators are going to have two options: withdraw from that market or make their prices and promotions for South Australian punters worse,” he opined.
 
Seven West Media chief executive Tim Worner said that the proposed tax was another example of a worrying trend of regulation and taxation without consultation.
 
“The point of consumption tax is another example of Australian businesses who pay tax and play by the rules set in Australia being disadvantaged against unregulated foreign service providers,” he claimed.
 
“The end result will be that consumers will move to unregulated providers and this cannot be in the best interests of consumers,” he added.
 
Companies supporting the drive against the South Australian tax proposal include Sportsbet, Ladbrokes, Bet365, Betfair and Unibet. The campaign has been dubbed "stop the punters tax" and launches immediately with full page newspaper advertisements and a social media campaign.
 
South Australias Treasurer Koutsantonis claims that  the p.o.c. based tax ensures that businesses pay taxes in the jurisdiction where they are making their money, emphasising that the first A$500,000 raised each year will go to combat problem gambling.
 
In his dual role as chairman of the Australian Wagering Council trade association, Barry met Koutsantonis last week and suggested that the industry could itself fund the Gamblers Rehabilitation Fund, but that the treasurer has shown no interest in such a solution and was in fact "quite dismissive."
 
Barry warned that legal action was a possibility, and that if operators withdrew from the South Australian market there would be "...no funding to racing and sport, no GST to the federal government, no corporation taxes to the federal government."
 
The Australian Wagering Council position on the tax is that it will ultimately damage Australia’s uniform responsible gambling initiatives by pushing punters into dangerous and unregulated overseas betting sites.
 
“South Australian punters are being treated like a cash cow by the South Australian government. Should it come into effect the tax will mean all South Australians lose, including the South Australian government that thinks putting its hands in punters’ pockets is a fast track to easy money,” Council chief executive Ian Fletcher said.

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Gambling News :

Unibet Name Changed to Kindred Group plc - Following an extraordinary general meeting at which shareholders approved the change of the Unibet title and brand to Kindred Group plc, the online gambling group will begin trading under the new name on December 12.

Kenya Betting Control Board Reviewing Changes - Kenya's booming sports betting sector could be facing stiffer government controls, especially regarding marketing, advertising and promotions, according to local media reports revealing that parliament is studying potential amendments to the Betting, Lotteries & Gaming Act.

Britan To Tighten SpreadBetting Controls - The UK media reported widely Tuesday that Britain's Financial Conduct Authority has announced a crackdown on spread betting using contracts for difference (CFDs) following FCA research that showed 82 percent of clients had lost money in the sector.

Playtech to Buy Back 50 Milliuon in Shares - #playtech In a statement, the company said that the decision reflects continued confidence in the growth and prospects of the business and its high cash generation, and revealed that it continues to trade in-line with expectations.

Sentencing in Vietnam Gambling Bust - The People’s Court in HCM City handed down sentences Monday to dozens of defendants linked to a major online sports betting ring dismantled last year by Vietnamese police.

Gamevy in Deal With Betsson - #Gamevy says it is partnering with several leading operators to deliver bespoke content that offers a real point of difference to players and increases brand loyalty.

Pkr To Offer Virtual Sports - #pkr The long established and respected online poker and casino operator PKR.com has followed its switch to Microgaming's MPN network earlier this year and the more recent launch of its live dealer offering with a new Virtual Sports attraction powered by Kiron Interactive.

Boris Becker New PartyPoker ambassador - #partypoker To celebrate the signing PartyPoker has created a Beat the Ace competition in which players get the opportunity to test their skills and luck in four $5,000 freerolls which started December 5. The overall winner will then get to play Becker heads up live in Germany for up to $25,000.

Snowmania Slot Launches - Capturing the festive feel in the now chilly northern hemisphere, RealTime Gaming has released its December offering, a 5 reel, 20 pay-lines online slot with a jackpot of 37,500 coins.

SportPesa is negotiating a major sponsorship deal with Everton - #SportPesa The Kenyan retail and online sports betting firm SportPesa is in the football sponsorship headlines again just days after news that it has inked a multi-million pound partnership with Hull City FC.

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