Gambling in Australia


Gambling is an activity undertaken by many Australians. Over 80% of Australian adults engage in gambling of some kind, which is the highest rate of gambling in the world. This number includes some 4% of the adult population who play the pokies once a week, accounting for some 62% of locals' annual gambling spend.
Gambling is a significant public health issue, with around 80,000 to 160,000 of Australian adults experiencing significant problems from gambling and a further 250,000 to 350,000 experiencing moderate risks that may make them vulnerable to problem gambling.

Revenue

In 2015–16, gambling revenue made up 7.7% of state and territory taxation revenue. The rate was lowest in Western Australia and highest in the Northern Territory. Gambling revenue made up 2.5% of total state revenue when other revenue sources were taken into account. The rate was lowest in WA and highest in Victoria. Gambling revenue as a portion of state taxation revenue has fallen for all states and territories between 2006–07 and 2015–16.
Total Australian gambling revenue in 2008-09 was just over $19 billion and the share of household consumption was 3.1%

New South Wales

New South Wales has a long history of gambling; Australia's first official horse racing meeting occurred in 1810 at Hyde Park in Sydney; the first official Australian lottery occurred in 1881 at the Sydney Cup; and registered clubs operated the first legal poker machines in Australia from 1956.
Approximately 95,800 of "pokies" are in NSW, a state total beaten only by Nevada, which operated 181,109 gambling machines in 2014.
Between 1 December 2017 to 31 May 2018 NSW Clubs made a net profit of $1,945,161,625 and hotels made a net profit of $1,169,040,731 from pokies alone.

Fairfield

Fairfield had the highest poker machine revenue in the state for 2013, generating $298 million in clubs and $93 million in pubs, from the start of the year to August. This figure is $123 million greater than the combined total of profits generated from poker machines in the City of Sydney.

Hunter Region

From January to March 2013 poker machines in the Hunter region had a turn over of $4.5 billion, showing an increase of $500 million since 2010. Daily figures show a spend of $12.5 million, working out to be $8682 per minute. The Office of Liquor Gaming and Racing found that Newcastle was the Hunter Regions most profitable location with the 3206 poker machines averaging $44,963 each.
The top five most profitable clubs for gaming revenue in the Hunter region in 2010 were:
The top five most profitable hotels for gaming revenue in the Hunter region in 2010 were.
According to the latest figures from Liquor and Gaming NSW there are 4,046 poker machines in 39 clubs on the Central Coast, and 626 poker machines in 29 hotels; making a total of 4,672 poker machines on the Central Coast. That means 2.37% of the total number of poker machines in Australia are on the NSW Central Coast.
Gosford has approximately 1928 pokies, spread across 37 venues. That is the equivalent of one poker machine for every 71 adults. In 2010–11, venues in Gosford made approximately $95,865,000 in profit from pokies. That equates to $700 for each adult member of Gosford's population.
Wyong has approximately 2608 pokies, spread across 35 venues. That is the equivalent of one poker machine for every 47 adults. In 2010–11, venues in Wyong made approximately $123,159,000 in profit from pokies. That equates to $1,000 for each adult member of Wyong's population.
The Central Coast has a higher prevalence of problem gambling than the NSW average. Young men between the ages of 18-24 living on the Central Coast are the biggest players of poker machines in NSW and are the highest risk group for problem gambling.
In 2008 Central Coast Gambling Help carried out a survey of 200 young people aged from 13-24 and found:
Since the introduction of new gambling services, including online gambling, the Commonwealth has taken a more active role in the regulation of gambling, but the Australian gambling industry is also regulated by State and Territory authorities:
Traditionally gambling has been legislated at a state and territory level rather than by the Commonwealth:
The Interactive Gambling Act was passed by the Australian Commonwealth Parliament on 28 June 2001. It received assent on 11 July 2001
The Act is targeted at online gambling operators, making it an offense for them to offer 'real-money' online interactive gambling to residents of Australia. It also makes it illegal for online gambling operators to advertise 'real-money' interactive gambling services to Australian citizens.
That being said, the amount spent on online gaming by Australians reached some $800 million by 2010, according to the official 2010 Productivity Report of the Australian Government.
Accessing and using the interactive gambling services is not an offence. It is also allowed to companies based in Australia to offer their gambling services to gamblers located outside Australia with the exception of those countries that were called 'designated countries'.

Taxation laws on gambling in Australia

Gamblers' winnings in Australia are not taxed. There are 3 main reasons for that:
Taxation of gambling operators in Australia differs from state to state and different gambling services are taxed in a different way. There are taxes on the turnover, on player loss and net profit. As gambling operators need to obtain a license to offer their services, certain fees must also be paid at this stage of gambling business development.
The use of different tax rates and tax bases makes it difficult to compare taxes across states. For example, the ACT's keno tax rate of 2.53% of turnover is equivalent to a tax rate on gross profits of 10.12%.
Tax rates
EGMs in hotelsEGMs in clubsEGMs in casinosKenoTable games in casinos
NSW0-50% of quarterly player loss, depending on quarterly player loss0-28.05% of quarterly player loss, depending on quarterly player loss 16.41-38.91% of gross revenue, depending on gross revenue, plus 2% Responsible Gambling Levy on gross gaming revenue8.91%-14.91% of player loss, depending on player loss16.41-38.91% of gross revenue, depending on gross revenue
Victoria8.33-62.53% of monthly average player loss, depending on by monthly average player loss, times by the average number of machines0-54.20% of monthly average player loss, depending on monthly average player loss, times by the average number of machines31.57-51.57% of gross gaming revenue, depending on gross revenue, plus a 1% Community Benefit Levy24.24% of player loss21.25-41.25% of gross revenue, depending on gross revenue, plus 1% Community Benefit Levy
Queensland35% of monthly taxable metered win, plus Health Services Levy of 0-20% of monthly taxable metered win, depending on monthly metered win0-35.00% of monthly taxable metered win, depending on monthly metered win30% of monthly gross revenue, 20% of gross revenue 29.40% of monthly gross revenue, excluding casino commissions, 20% of monthly gross revenue, 10% of gross revenue 20% of monthly gross revenue, 10% of gross revenue
Western AustraliaN/AN/A12.42% flat rate on gross gaming revenue, plus 2% Burswood Park Levy on gross revenue9.37% of player loss, 1.75% of player loss 9.37%, 12.92%
South Australia0-65% of annual net gambling revenue, depending on annual net gambling revenueUp to 41% of net gambling revenue41% of net gambling revenue3.41% of net gambling revenue, 10.91% of net gambling revenue
Tasmania25.88% of gross profit, plus 4% Community Support Levy25.88% on gross profit5.88% of gross profit0.88% of annual gross profit
Northern Territory12.91-42.91% of monthly gross profits11% of gross profit, 15% of gross profit, plus a 10% Community Benefit Levy10% of gross profit, reduced by the GST amountThe GST rate only
Australian Capital Territory25.9% of gross monthly revenue, plus 0.6% Problem Gambling Assistance Fund Levy10.9% of gross revenue2.53% of turnover

Forms of taxationGambling Activity
Turnover taxBookmakers
Bookmakers
Totalisator wagering on racing
Lottery subscriptions
Draw card machines
Keno
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Tax on player lossTotalisator wagering on racing
Sports betting
Poker machines in hotels, clubs, casinos
Casinos
TAB sports betting
Keno
Net profits taxPoker machines
Off-course totalisator investment
Licence FeesCasinos
Poker machines
Lotteries
Racing
Bookmakers
Sports betting
Minor gambling