Online Betting Taxes The State
Sydney Morning Herald
Friday December 5, 2008
THE State Government has been told it should allow bets on politics and reality TV shows such as Australian Idol.
The call was made in a report on overhauling the betting and racing industry, which has fallen with the rise of internet betting. But against a backdrop of dangerous gambling, the report warns the Government to act with caution so as not to offend "good taste or community expectations". Betting on the outcome of court cases or sporting tribunal hearings should not be considered, for example. The review by Alan Cameron, a former chairman of the Australian Securities and Investments Commission, advises the Government to enable a newly constituted Casino, Liquor & Gaming Control Authority to select events for betting, "including political elections and reality television programs". It calls for a nationally co-ordinated approach to deal with internet betting's inroads. Mr Cameron wants online betting exchanges to operate in NSW. These include Betfair, part-owned in Australia by James Packer, which has been criticised for its limited contribution to the racing industry. As a betting exchange, Betfair allows two people to bet against each other. It also allows people to bet a horse will not win a race, which has been criticised for encouraging corrupt practices. The Government set up the Cameron review a year ago after the Herald disclosed that the then premier, Morris Iemma, had intervened to clear the way for Betfair's entry into NSW. Making the Cameron review public yesterday, the Minister for Gaming and Racing, Kevin Greene, said: "It is becoming increasingly problematic for any state to try operating independently with the entry of corporate bookmakers and the cross-border 'leaking' of revenue." Boston Consulting Group estimated the Government lost $14 million a year in gambling tax revenue due to internet gambling, and the racing industry lost $27 million. Bookmakers and the TAB pay a racing industry levy, which betting exchanges avoid.
© 2008 Sydney Morning Herald