for early access to the latest igaming videos!
and get the latest igaming news first!
The Northern Territory government in Australia has today announced that the annual tax cap on bookmakers and betting exchanges in the region will double as it looks to generate more revenue from the sector.
The plan was unveiled today (May 13) as part of the state’s 2025-26 budget and aims to generate an additional AU$13.1 million (US$8.4 million) in tax revenue every year. If everything goes according to plan, the new tax cap will go into effect this July.
Under the current Racing and Wagering Act 2024, the annual tax cap is set at one million revenue units. However, this act would be amended to increase the cap to two million, with the government expecting tax income for the 2025-2026 fiscal year to rise to $32.6 million for bookmakers and $2.9 million for betting exchanges.
“This will standardize the taxation of internet gaming in the Territory and ensure a level playing field for online operators who offer ticket re-selling or matched lottery products,” stated Bill Yan, the state treasurer.
“[Across the entire budget,] taxation and royalty revenues are expected to increase by A$142m in 2025–26, driven by improved royalties and reforms like the new gaming tax arrangements. That’s more funding to invest in safer communities, better services and real economic growth.”
The budget also introduces a uniform 50% tax rate on all internet gambling licenses. This will also go live in July, replacing the current agreement-based tax setting for licensed operators. Estimates show that this might lead to $17.7 million in tax income each year.
Lack of Industry Consultation Criticized
As expected, the announcement has been met with heavy criticism from state players, particularly the national sports betting body, Responsible Wagering Australia (RWA).
In a statement released today, Kai Cantwell, the trade body’s CEO argued that the annual tax cap increase was introduced without consulting industry stakeholders or considering the long-term sustainability of the wagering and racing sectors, which was set to be discussed at the Northern Territory Government’s own Racing Industry Review.
“This tax hike preempts the outcome of the Review, a process that was meant to guide long-term, evidence-based and sensible reform. It sends a message that consultation, process and industry sustainability have taken a back seat to short-term revenue grabs. It sends a message that consultation, process and industry sustainability have taken a back seat to short-term revenue grabs,” Cantwell said.
“Rather than imposing blunt tax increases, the government should be working with industry to identify growth opportunities that will ensure the Territory’s continued leadership as a licensing jurisdiction.”
He went on to say that the decision had ‘blindsided’ sports betting providers in the region. “RWA have participated meaningfully in the review and eagerly anticipated a new strategic vision for racing in the Territory. This decision, made before the Review has had a chance to lay that strategic vision, has blindsided [Wagering Service Providers] and materially undermines any outcome of the Review.”
Cantwell finished by calling on the chief minister and treasurer to reconsider this major decision and instead engage in meaningful discussion with industry stakeholders before taking the next steps.
Australia’s Northern Territory gambling tax is projected to reach the $145 million mark in 2025-26, signalling a notable 25.5% increase from 2024-2025.
Meanwhile, wagering tax, lotteries tax, community gaming machine tax, and community benefit levy will all stay the same in 2025-26.
Source: IGB
