Tax: What is the tax take?

Australia Online Gaming Fees - With the exception of betting, application fees and licence fees for gambling licences in Australia are largely negotiable as part of a competitive process to secure a monopolistic licence. As such, there are generally no prescribed fees which can be provided as guidance for the purposes of the Australian chapter, unlike various other international jurisdictions. An overview of licence fees payable by a Northern Territory corporate bookmaker or betting exchange to the Northern Territory Wagering Commission (NTWC) are set out in the betting sub-section. The application fee payable for a Northern Territory sports bookmaking licence is currently AU$29,800 being 20,000 revenue units at the 2026-27 revenue unit value; currently $1.49. This amount is also payable on an annual renewal. In addition, wagering tax (calculated at 5% of net profits subject to a cap of $2,900,000) and a recently introduced racing and wagering levy (calculated as 0.05% of revenue less certain allowable deductions). Successful applicants will also be required to provide a bank guarantee of $250,000 to secure amounts owing to customers and the Territory. Retail wagering operators, Corporate Bookmaker Licence holders and on-course bookmakers are also required to pay race field fees/product fees to race controlling bodies and sports controlling bodies, respectively, in relation to bets taken on their product. These fees are generally a percentage of turnover, or the greater of a percentage of turnover and gross margin and depend upon the relevant product. The fees payable for a major retail licences are entirely negotiable as part of a competitive licence process for monopolistic licences. Skill games: Some jurisdictions maintain interactive gaming licensing regimes that may apply to a product which is entirely skill based with no element of chance. Application fees can range from zero to almost AU$100,000 for the licence, with ongoing annual fees and taxes that attach. Software/B2B: Application fees in respect of software (mainly for listing on the roll of manufacturers) vary across the States and Territories however the amount is often immaterial (for example, the fee payable in Victoria is approximately AU$3,172.80) Application fees | Victorian Gambling and Casino Control Commission (vgccc.vic.gov.au). Australia Online Gambling Taxes The state and/or territory taxes which apply to gambling products depend upon the relevant licence under which the product is being offered, the type of product and also the jurisdiction in which the product is offered. Each of these are covered in the sub-sections below. Betting: Major retail betting licences are infrequently available and are monopolistic. As such, an applicant must generally apply for a sports bookmaker licence issued in the Northern Territory or other licensing jurisdiction in order to offer online wagering products in all States and Territories. It is also possible to apply for an on-course licence issued by a principal racing authority, with approval to operate over the internet and telephone. Given that new entrants to Australia typically apply for a Northern Territory licence, we have confined the overview below to the taxes payable by that licensee. NT wagering tax rates (as opposed to corporate tax on profits) applicable to a Corporate Bookmaker Licence holder are as follows. Sports bookmakers are subject to a tax at a rate of 5% of gross profit for the preceding calendar month, calculated as the total amount of wagers made with the bookmaker during the month less the total amount paid by the bookmaker in respect of those wagers.. There is a combined annual cap on NT taxes payable, which is 2,000,000 revenue units. From 1 July 2026, one revenue unit is currently equivalent to A$1.49, with the total cap therefore being A$2,980,000. Point of Consumption Tax (POCT) With the exception of NT (where alternative betting taxes still apply to licence holders), all Australian states (and the Australian Capital Territory) have introduced a Point of Consumption Tax (POCT) in respect of bets placed by their residents (which is payable by the relevant bookmaker irrespective of the location of the bookmaker). This is a departure from the previous “point of supply” regime, under which states and territories derived no betting tax revenue from NT sports bookmakers and other licensed betting operators taking bets online in the relevant jurisdiction. The POCT for Victoria is currently levied at 15% of “net wagering revenue” exceeding a threshold of A$1,000,000 in respect of all bets placed by Victorian residents (as applicable) through the relevant bookmaker. The POCT for New South Wales is similarly levied at 15% on “net wagering revenue” exceeding an annual threshold of A$1,000,000 in respect of all bets placed by NSW residents (as applicable) through the relevant bookmaker. In relation to Queensland, the POCT rate is effectively levied at 20%, with a threshold of A$300,000. In relation to the Australian Capital Territory, the POCT rate has recently been increased to 25%, with a threshold of A$150,000. South Australia, Western Australia and Tasmania each presently impose a 15% point-of-consumption or equivalent betting tax subject to the applicable jurisdiction-specific thresholds and calculation methodologies. The various POCT regimes calculate ‘net wagering revenue” differently. The Northern Territory does not impose an equivalent point-of-consumption tax. Instead, sports bookmaker and betting exchange licensees are subject to both the wagering tax set out above and a Racing and Wagering Fund levy. For sports bookmakers, the levy is calculated at 0.05% of wagers made during the relevant month less amounts paid out on those wagers, excluding free or bonus wagers. For betting exchange licensees, the levy is calculated at 0.05% of commissions retained or received. Approved deductions may be available for qualifying donations or sponsorships to Territory community organisations, up to A$250,000 per year. Casino: Online casino product is illegal under the IGA. In a land-based context, state and territory taxation on casinos is determined on a case-by-case basis (typically during negotiations with the relevant state or territory government at the time). By way of example, putting aside a federal company tax of either 25% or 30% on profits and a goods and services tax (GST) of 10% on gross revenue, the sole casino licensee in Victoria, Crown Melbourne, paid a multi-million-dollar licence fee to the state for the right to operate the only casino. In addition, that licensee currently pays the state a tax of 21.25% of its gross gaming revenue from table games while gaming machine revenue is subject to progressive rates based on average monthly revenue per machine, which can range from 0-60.67%., Commission-based players’ gaming revenue is taxed at 9%. A 1% community benefit levy also applies to total gaming revenue. The sole casino licensee also pays a tax of 9% on commission-based players (formerly termed ‘high roller’ gaming revenue), together with a 1% community benefit payment. Finally, the sole casino licensee pays an additional casino ‘super tax’ based on gross gaming revenue, which increases depending upon gaming revenue levels, with a maximum tax payable of 20%. The relevant taxation amounts are reduced by the GST paid by the casino licensee in relation to these services. {Should be scored as Green / low – can VAT/GST be enforced against unlicensed operators?} Lottery: Lotteries are subject to relatively high State and Territory taxation rates. For example, in the key States of Vic, NSW and Qld, respectively, the rates are 79.40% of player loss where GST is payable and 90% of player loss where GST is not payable, 76.918% of player loss (player subscriptions net of prize liability) less GST payable on subscriptions and sales commissions and 73.48% of monthly gross revenue for declared lotteries (with lower rates for instant scratch-its and soccer pools). By contrast, taxation of keno across the same three key States is 24.24% of player loss, 8.91% of player loss (increasing to 14.91% where player loss exceeds AUS $86.5 million) and 29.40% of monthly gross revenue after deducting any casino commissions. Various States also set minimum player returns. Where an operator is licensed through the Northern Territory as the holder of an internet gaming licence, then the tax rate is set at a minimum of 50%. Software/B2B: There are no specific gambling taxes levied on software or B2B service providers. Operations with an establishment in the jurisdiction will be subject to local income and other business taxes in addition to GST. As offshore B2B providers provide digital products, they may also need to register and pay GST depending on whether they meet various thresholds. Please see the following link for more information: https://www.ato.gov.au/business/international-tax-for-business/gst-on-imported-services-and-digital-products/