Tabcorp Holdings Limited agrees Queensland tax settlement

Only a few days after completing the demerger of its lottery and keno business and Australian bookmaker Tabcorp Holdings Limited has announced the settlement of litigation with the state of Queensland that is to see it hand over approximately $108 million in unpaid taxes.

The Melbourne-headquartered firm used an official press release to detail that this arrangement came after the state initiated legal proceedings in 2019 as part of an attempt to recoup cash owed via its 15% point of consumption tax. Tabcorp Holdings Limited had long argued that this duty was unfair due to the fact that its rate was considerably higher than those in neighboring jurisdictions such as the Northern Territory.

Corresponding correlation:

At the same time as unveiling this agreement and Tabcorp Holdings Limited disclosed that its finalization remains contingent upon Queensland implementing planned legislation later in the year that is to see the large state’s existing point of consumption tax rate on sportsbetting rise by a further five percentage points to 20%. The operator explained that this scheme also includes a provision that will allow it to cancel agreements with the Racing Queensland body so as to ensure it pays a lower proportion of its revenues in duties to the industry and government.

Expected equality:

Adam Rytenskild (pictured) serves as the Chief Executive Officer for Tabcorp Holdings Limited and he pronounced that the arrangement with the government of Queensland Premier Annastacia Palaszczuk will result ‘in a level playing field’ and see his company ‘paying wagering taxes and racing product fees on the same basis as other wagering operators’. The boss furthermore proclaimed that the reforms have been designed to ‘address the underlying structural changes in the operating environment’ that have emerged with the increasing popularity of ‘online wagering from Northern Territory-licensed bookmakers.’

Significant supporter:

The racing industry in Queensland had previously relied on Tabcorp Holdings Limited for over half of its wagering income but the Australian operator asserted that the new-look scheme will result in the sector getting ‘increased funding’ via its ability to ‘negotiate directly with clubs for any on-course advertising arrangements’. The company additionally noted that it had paid almost $101 million in direct taxes and fees to ‘The Sunshine State’ last year but would have handed over some $79 million under the tenets of the coming scheme.

Read a statement from Rytenskild…

“Online betting has changed the market substantially since our licences were issued. On a relative basis, we currently pay double the fees to the local racing industries compared to other wagering operators and going forward we will all pay the same in Queensland. I commend the Queensland government for delivering fair and much needed reforms that brings the wagering market into line with the modern economy.”