Online Casinos May Not Head to Tasmania Just Yet

Tasmania had advanced a plan to eliminate taxes on online casino bookmakers so as to lure business away from other Australian states, but the other territories are responding by undercutting Tasmania's offer to gambling outfits.

The government of Tasmania had constructed a brilliant plan to build a burgeoning online casino and sports booking industry in the state. But other Australian territories are not anxious to lose revenue producers to the island state, so counter-measures are being taken.

Tasmanian officials had decided to drop taxes on online bookmaking, hoping to lure casino operators to relocate on the island. A licensing fee would create revenue, while jobs created would spur the local economy on the import of gambling companies.

But the Northern Territories government has moved to respond to the Tasmanian strategy, lowering its charges on bookie currently based there so as to retain them and undercut the Tasmanian offer.

Meanwhile, longtime resident Betfair is threatening to leave Tasmania, saying its betting exchange would still face heavy taxation even as competitors are allowed to avoid any payments other than the licensing fee.

Officials from other states are blaming Tasmanian State Treasurer Michael Aird for advancing the plan to eliminate taxes, saying the resultant competition among the states created new profits for online bookmakers without adding a single new job to the island.