Tasmania’s casinos to save millions on taxes under new proposed gaming laws

Matt Maloney | Examiner & Advocate Newspapers | 9 August 2021

A former Tasmanian Attorney-General and serving parliamentarian have presented economic modelling which suggests proposed gaming legislation would result in a $367 million loss for taxpayers to the poker machine industry.

The analysis is included in Nelson independent MLC Meg Webb’s submission to the government on the legislation, supported by Sir Max Bingham.

Sir Bingham said he was compelled to contribute to the consultation in order to improve regulation of the gaming machine industry in Tasmania.

“I am sure my former premier Angus Bethune would approve of action to help give Tasmanian punters a more nearly fair go, which the present level of sophistication of the machines currently denies them,” he said.

“I confess to another motive. The performance of both Liberal and Labor parties and the gaming machine industry in the 2018 and 2021 elections has caused me great concern and has seriously imperilled democracy in Tasmania.”

Ms Webb said the state government had failed to make a social or financial case for its pokies policy.

“The government has provided no credible rationale for the tax rates and licensing fees in the policy,” he said.

Findings from the economic analysis by ACIL Allen showed $3.8 million in government revenue would be generated annually from hotels and clubs under the proposed licensing model.

It said the lower tax rate applied to poker machines in casinos would result in $14.9 million less in government income in 2024 and a drop of $248 million over a 20-year period.

The analysis showed a reduced casino Keno tax rate under the legislation would result in a $130,000 loss in government revenue in 2024 and a $2.7 million loss over 20 years.

Ms Webb said setting poker machine licenses at an average of $4000, rather the proposed average of $1643, would see additional income of $5.4 million or $108.7 million over 20 years.

“Tasmanian taxpayers will miss out on hundreds of millions of dollars across the license period due to rates that are set too low for poker machine licenses, casino pokies tax rates and Keno operator licenses and taxes,” she said. Ms Webb said there was no justifiable reason to discount the tax rate on casino pokies.

Read the report here