Tasmania Drops Gambling Taxes - 10-12-09

October 12 - The government of Tasmania has managed to cause a shakeup in the gambling world after it was decided to drop taxes traditionally paid by gaming operators, and instead charge a flat one-time licensing fee.

Tasmania is hoping to attract some of the biggest names in the gambling industry to relocate their operations by charging $250,000 only, without the need to follow up with taxes over the years.

While the government of Tasmania is hoping to create hundreds of employment opportunities through this move, others are wondering what the long term effects on the rest of Australia will be.

As one analyst noted: "This move by Tasmania is going to have a worldwide effect on the future of online gambling. For the rest of Australia, it could end up in disaster, because Tasmania is undercutting all of their laws regarding online gambling."

Others criticizing this move include welfare groups and anti gambling organizations such as Anglicare which is currently seeking problem gambling reform.

"We think that's where their energy ought to go, and we would expect to see that prior to a state election," said Chris Jones of Anglicare.

"What we're concerned about is the flow on effect to problem gamblers of any more gambling products in Tasmania," said the Reverend. "Where is the State Government's whole of Government approach? They need to be looking at ways of actually moderating the effects of gambling, not increasing the pool of gambling."

The leader of the Greens in Tasmania, Nick McKim said: "Positioning Tasmania as a gaming hub is not a clean, green, clever way forward."

In the meantime, the change in the state's taxation regime has attracted the attention of gaming operators around the world, with many waiting to learn more details as they unfold.

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