Tasmania Drops Online Casino Tax, Creating Furor in Australia
Tasmania, which has always been a step ahead of the rest of Australia in gambling matters, decided to drop its tax on bookmaking operations, instead collecting a flat fee. The state is being eyed as a base by online gambling and bookmaking operators throughout the country and from around the world.But, even as other sports betting companies quickly mark up plans to move bases to Tasmania, Betfair threatens to pull out. The sports betting exchange still faces a fifteen percent tax, putting it at a potential competitive disadvantage to bookies charged the licensing fee without tax.
Other gambling operators have accused Tasmania of attempting to profit on the rest of Australia's loss. The fee, thought to be around $250,000, would lure most of the country's biggest operations from Sydney.
Government officials asserted that the movement of bases to Tasmania would create much-needed jobs.But gaming opponents spoke against the concept of Tasmania as a global gambling hub.
"With the opportunities opening up with the national broadband network, we would encourage the government to make sure we're not just a competitive place for gambling businesses but a competitive place for all businesses," Liberal Party spokesman Peter Gutwein told The Mercury.
