NSW Budget reveals big gambling revenues

Nsw Gambling Tax Revenue Department
Nsw Gambling Tax Revenue Calculator

Ahead of the New South Wales State Budget, the ABC reveals that gambling revenue is back on the up after months of inactivity due to the coronavirus pandemic.

Gambling tax revenue in the state is expected to be nearly $3 billion this financial year, an increase of around $50 million since the half-yearly review.

Alliance for Gambling Reform’s Tim Costello said the government continues to ignore the personal impact of gambling on families and individuals.

“It’s very, very depressing and the dip for the 10 weeks the pokies were shut was a small dip, now it’s roaring back and we know most of these pokies are in your poorest postcodes,” he said.

Find our top tasks, calculators and publications. Quickly pay your liability or fine. Online services. Register, manage and pay, and check service availability. Land Tax 26 Gambling Taxes. 29 Racing Taxes 29 On-Course Totalizator Tax 29 Off-Course Totalizator Tax 30 Bookmaker’s Turnover Tax. 31 Other Gambling Taxes. 33 Gaming Machine Levy 33 Casino Taxes 35 Lotteries 37 Keno 39 Internet Gaming 39 Betting Exchanges. 40 Motor Vehicle Taxes. 41 Motor Vehicle Registration Fee 41. The Act requires each casino licence in NSW to make contributions to the Fund, with contributions currently set at two percent of gaming revenue. Money may also be paid into the Fund as a community benefit payment or gaming machine lease levy under the Gaming Machines Act.

“Fairfield residents who are already poor are contributing to treasury disproportionately.”

Queanbeyan poker machines do a roaring trade

While poker machines were closed in the Australian Capital Territory, just across the border in New South Wales, trade was roaring.

The Canberra Times reported in October that profits from pokies in neighbouring Queanbeyan more than doubled each month after ACT clubs stayed closed due to the coronavirus pandemic when compared to the year prior.

Following reports Canberrans rushed across the border to gamble when NSW venues opened on June 1, the 15 venues in the Queanbeyan-Palerang local government area took in $7,384,845 from gaming that month, up from $3,462,833 in June 2019.

While ACT gaming machines stayed switched off to comply with early stage-three restrictions in July, Queanbeyan’s gaming profit shot up more than 150 per cent on the same time last year.

The NSW gaming data revealed a more moderate increase of 84 per cent in August, with Canberra gaming venues switched back on in the second week of that month.

ClubsACT chief executive Gwyn Rees fought hard to bring Canberra in line with its border state, claiming clubs were losing about $5 million in revenue per week during restrictions.

“The ACT was the last jurisdiction to provide a COVID recovery roadmap, last to get relief out, slowest to reopen business and is the worst-performing on business support,” Mr Rees said at the time.

With Canberra clubs reopened throughout September, gaming machine profit from Queanbeyan’s eight clubs and seven hotels dropped to $45,321,528, still up 27 per cent on last year.

Relationships Australia spokesperson Julie King said clients who engaged with the support service for counselling and financial advice during the coronavirus closures in Canberra had reported crossing to NSW during COVID-19.

Ms King said while having all gaming-machine venues closed to prevent the spread of coronavirus had been beneficial to problem gamblers who used machines, they had seen an increased uptake of online gambling.

Nsw Gambling Tax Revenue Department

“I think the biggest issue of what’s happened with COVID is not necessarily changing the behaviour of the gambler but it’s the potential impact that had on their families,” she said.

“If the gambler would not normally be gambling in the house the children would not normally be exposed to it, but given during the COVID time children were at home often they would observe their parents or their older sibling gambling, which increases the risk to children.”

Canberra residents crossing border to play pokies

Residents of Canberra who are prevented from playing pokie machines near their home due to COVID-19 restrictions are crossing into New South Wales to play.

The Canberra Times reported in August that up to 40 per cent of patrons of border town clubs in New South Wales are actually from the ACT.

Clubs ACT chief executive Gwyn Rees said reports coming from pubs and clubs in Queanbeyan were that almost half of those signing in were from Canberra.

Mr Rees said NSW clubs were seeing an extraordinary turnaround in food and beverage trade, while ACT clubs remained closed to gamblers.

The point of consumption tax is calculated at 10 per cent of the net NSW wagering revenue that exceeds the financial year threshold for bets that are placed in NSW.

Net NSW wagering revenue

Your net NSW wagering revenue is calculated as the sum of the following.

1. NSW totalizator bets	Total of all your NSW revenue from totalizator pools during the period.
2. NSW betting exchange bets	Total of all your fees and commissions for NSW betting exchange bets.
3. Other NSW bets	Calculated by: Total of all NSW bets, including bets placed at fixed odds and totalizator derived odds, and the face value of any free bet. plus Total fees and commissions associated with making the bets. less Total winnings paid or payable in relation to those bets, including winnings paid for free bets, but not including winnings paid in the form of credits or entitlements that can't be converted to money. less Total refunds paid or payable in relation to those bets, not including the amount paid or payable in credits or entitlements that can't be converted to cash.
4. Unclaimed winnings for NSW bets	Amounts you're entitled to retain for unclaimed NSW winnings during the period.
5. Other amounts	Amounts you're entitled to be paid in relation to unclaimed NSW winnings during the period.

Taxable net wagering revenue

When preparing your monthly returns, calculate your net NSW wagering revenue and deduct the threshold entitlement for the financial year.

Calculating a free bet

The face value of a free bet (also a bonus bet) must be included when calculating your net NSW wagering revenue. Any amount reclaimed from a successful bet must not be included as part of total winnings.

Example 1: Customer A receives a free bet valued at $200, which results in zero winnings.

Total other NSW bets	$200
plus total fees and commissions	$0
less total winnings	$0
less refunds	$0
Other NSW bets	$200

Example 2: Customer B receives a free bet valued at $200, which results in a gross win of $750.

The betting operator deducts $200 (value of free bet) from the gross winnings, resulting in a net winning of $550.

Total other NSW bets	$200
plus total fees and commissions	$0
less total winnings	$550
less refunds	$0
Other NSW bets	-$350

Bets placed before 1 January 2019

Net NSW wagering revenue is calculated according to when a bet is placed and the cash received, not when an event occurs or a bet is settled.

Bets placed before 1 January 2019 aren't subject to point of consumption tax. Winnings from these bets can't be claimed as a deduction when