Tabcorp Holdings Limited has approached the NSW Government with an indicative proposal to make tax and regulatory changes to the wagering sector that would alter the way funding flows to the racing industry.
The Government will establish a formal process to consider Tabcorp’s proposal, which will include engaging with relevant racing industry bodies.
The proposal will ultimately be considered based on value for money, benefits to the NSW taxpayer and its ability to secure a sustainable future funding model for the NSW racing industry.
The formal process may include consideration of:
- Reforming legislative and license requirements related to wagering, including the requirements to enter into an agreement with the racing industry and 10 per cent shareholder cap
- Changes to the Point of Consumption Tax to align with other states that charge 20 per cent, and ongoing requirements under the Betting Tax Act.
- The findings and recommendations arising from Hospitality and Racing’s Modernisation Review of the Totalizator Act.
Wagering operators and any other parties that could be affected by any potential changes will be invited to make submissions as the Government considers Tabcorp’s proposal.
Treasurer Daniel Mookhey said:
“Gambling companies should always be paying their fair share.
“The NSW Government will apply strict scrutiny to Tabcorp’s proposal. Change will happen if it is clear that the public will be better off.”
Minister for Gaming and Racing David Harris said:
“The NSW racing industry generates billions of dollars for the NSW economy and sustains tens of thousands of jobs. The NSW Government wants to ensure the industry has a sustainable future for all those who make a living from it and participate in it and that the public is getting its fair share from all involved.
“We must be satisfied the proposal meets the interests of both the wider community and the racing industry and its stakeholders, before we consider implementing any elements of it.”