Taxation of gambling in NSW
The taxation of gambling in New South Wales (NSW) is governed by a number of statutes including Casino Control Act 1992, Gaming Machines Act 2001, Betting and Racing Act 1998 and Public Lotteries Act 1996. The system is structured in such a way as to ensure stable revenues to the state budget and at the same time control the development of the gambling industry.
1. Casino taxes
Casinos are required to pay Gross Gaming Revenue (GGR) tax.
The tax rate varies depending on the type of game:
2. Taxation of slot machines (poker machines)
For clubs and pubs, tax rates are calculated based on monthly or annual income from machines.
A progressive scale is applied: the higher the income, the higher the percentage of tax.
Part of the tax revenue is used to finance social and sports programs.
3. Taxes for bookmakers and sweepstakes
Licensed bookmakers pay tax on net betting income (Net Betting Revenue)
Bets are set as a percentage of the amount remaining after the winnings are paid.
Additionally, license fees and contributions are paid to support the horse racing industry.
4. Lotteries and sweepstakes
Lottery operators pay tax as a percentage of gross ticket revenue.
The interest rate depends on the lottery format and may be lower than for casinos and machines.
5. License fees
In addition to taxes, operators are required to pay annual licensing fees for the right to operate.
The amount of the fee depends on the type of license, the scale of the business and the number of objects (machines, betting points).
6. Control and reporting
Operators are required to submit regular financial statements to Liquor & Gaming NSW or the relevant regulator.
Late payment of taxes or understatement of income entails fines, penalties and a possible revocation of the license.
Conclusion:
1. Casino taxes
Casinos are required to pay Gross Gaming Revenue (GGR) tax.
The tax rate varies depending on the type of game:
- Board games and poker are a fixed percentage of GGR.
- Slot machines in casinos are a separate bet, usually higher than for tables.
- Differentiated rates are possible for VIP lounges and high rates.
2. Taxation of slot machines (poker machines)
For clubs and pubs, tax rates are calculated based on monthly or annual income from machines.
A progressive scale is applied: the higher the income, the higher the percentage of tax.
Part of the tax revenue is used to finance social and sports programs.
3. Taxes for bookmakers and sweepstakes
Licensed bookmakers pay tax on net betting income (Net Betting Revenue)
Bets are set as a percentage of the amount remaining after the winnings are paid.
Additionally, license fees and contributions are paid to support the horse racing industry.
4. Lotteries and sweepstakes
Lottery operators pay tax as a percentage of gross ticket revenue.
The interest rate depends on the lottery format and may be lower than for casinos and machines.
5. License fees
In addition to taxes, operators are required to pay annual licensing fees for the right to operate.
The amount of the fee depends on the type of license, the scale of the business and the number of objects (machines, betting points).
6. Control and reporting
Operators are required to submit regular financial statements to Liquor & Gaming NSW or the relevant regulator.
Late payment of taxes or understatement of income entails fines, penalties and a possible revocation of the license.
Conclusion:
- The gambling taxation system in NSW covers all market segments: casinos, slot machines, bookmakers, lotteries. Tax rates depend on the type of activity and the amount of income, and control is ensured by strict reporting requirements. This allows the state to generate significant revenues while regulating the development of gambling.
