Controversy Erupts Over Tax Increases in Northern Territory Gambling Sector
Responsible Wagering Australia (RWA) has expressed serious concerns regarding recent tax hikes imposed by the Northern Territory government.
In an ambitious move announced within the 2025-26 budget, the Northern Territory has decided to double the annual tax cap for corporate bookmakers and betting exchanges. This increase is anticipated to contribute an extra AU$13.1 million (about US$8.4 million) to the territory’s tax revenue annually.
Set to take effect on July 1, the modifications will be reflected in the Racing and Wagering Act of 2024. The new cap will be established at two million revenue units, a significant increase from the previous one million. The government estimates this change will raise the total tax income from bookmakers to $32.6 million for the fiscal year 2025-26, while betting exchanges are expected to contribute around $2.9 million.
In addition to the cap raise, a uniform tax rate of 50% will be applied to all internet gambling operators, overriding any previously negotiated tax agreements. This alteration aims to generate an additional $17.7 million in taxes annually, pushing the overall gambling tax forecast for 2025-26 to approximately $145 million, marking a 25.5% increase from the previous year. Notably, other forms of gambling taxes, such as for community gaming machines and lotteries, will remain intact.
RWA Voices Opposition Over Surprise Tax Policy
The announcement has been met with pushback, particularly from Responsible Wagering Australia, who have labeled the tax increase as a shocking development for the industry. The RWA articulated that this decision occurred without prior consultation with industry stakeholders, leaving many in the sector bewildered.
“The RWA has actively contributed to the review process and was anticipating a comprehensive strategic vision for the racing sector in the Territory,” stated RWA CEO Kai Cantwell. “This sudden tax increase has caught wagering service providers off guard.”
The RWA aims to promote a licensing framework within the Northern Territory that ensures top-tier consumer protection while simultaneously fostering local business investments.
Calls for Collaborative Dialogue Remain Unanswered
Furthermore, the RWA has pointed out that this tax change arrives ahead of the long-awaited report from the government’s own Racing Industry Review, which was designed to explore sustainable practices within the wagering and racing realms.
“This action signals that genuine consultation and long-term sustainability are being sidelined in favor of immediate financial gains,” Cantwell remarked. “Instead of blunt tax hikes, the government should collaborate with industry professionals to explore growth opportunities, ensuring the Northern Territory maintains its status as a premier licensing jurisdiction.”
RWA is urging decision-makers to rethink this course of action and engage in meaningful dialogue with industry representatives to forge a more sustainable path forward.