Queensland Government launches racing industry review amid funding concerns
RWA warns that increased taxation may be impacting wagering revenue and long-term industry sustainability.
Key points:
– Queensland Government announces a review into the financial sustainability of the state’s racing industry
– RWA highlights potential risks of high taxation, citing declines in wagering activity and industry funding
– The review follows a 2022 POCT increase to 20%, with 80% of revenue directed to the racing sector
The Queensland Government has initiated a review into the financial sustainability of the state’s racing industry, with a focus on funding models and the viability of all racing codes.
Responsible Wagering Australia (RWA) has welcomed the move, stating that the review should address challenges linked to taxation and industry funding.
RWA CEO Kai Cantwell noted that while the racing industry requires a stable financial model, the need for a review highlights concerns regarding the impact of increased taxation on wagering activity.
Cantwell said: “Despite the former Queensland Government increasing the POCT to 20% in 2022 with an 80% passthrough rate to racing, the Government is now revisiting the industry’s funding and sustainability – highlighting the unintended consequences of over-taxation and regulation.”
The current system allocates 80% of Queensland’s POCT revenue to the racing industry, meaning any decline in wagering activity reduces funding for racing participants, prize money and infrastructure.
Good to know: RWA argues that high tax rates could make the environment unsustainable for wagering operators, leading to lower overall revenue for the industry
Cantwell also pointed to the Australian Capital Territory’s (ACT) decision to raise its POCT from 20% to 25% in 2023, stating that it was implemented without industry consultation and resulted in an overall tax revenue decline.
RWA maintains that a balance must be struck between consumer protection and industry sustainability to avoid similar outcomes in Queensland.
RWA has been vocal in its concerns about excessive taxation and the growth of illegal offshore gambling operators. In 2024, the organisation supported NSW GambleAware Week, which promoted responsible gambling strategies while highlighting the increasing market share of unlicensed operators.
RWA has previously estimated that offshore gambling platforms could account for up to $3bn in lost economic activity in Australia by 2027 if left unregulated.
Cantwell concluded: “We thank the Queensland Government for taking time to consult with industry as part of the review and look forward to working together to find a way forward that is good for racing and good for Queensland.”
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