The Tasmanian government has abolished its 15% gambling tax for on-line bookmakers, in favor of a flat annual license fee. This has led Betfair, who would still pay the original tax based on turnover, to look at its options off the island.
Tasmania Treasurer Michael Aird stated he was working with Betfair to ensure the betting agency remains in Tasmania and that he has been having discussions with the company about renewing its license, which expires in 2011. While Betfair has appeared to say it would require a level playing field with other operators if it was to stay, Aird has said that he is “confident that the excellent association between Tasmania and Betfair will continue long into the future.”
“The Government’s view has always been that the taxation change would create more employment opportunities for Tasmanians,” he added, “and indeed, that demand for people and skills in Tasmania would grow. Under the new tax arrangement, corporate (online) bookmakers that become licensed in Tasmania will need to establish their risk management teams in Tasmania so that the State gets the employment benefits.”
“The Government has created an opportunity for wagering businesses to take advantage of not only Tasmania’s favorable taxation environment, but also the opportunities Tasmania is now presenting in terms of IT infrastructure which is vital to today’s modern and IT driven wagering operators.”
The online bookmakers based in Tasmania will now only pay an annual license fee of around AUD250,000 (USD226,000), which is said to be very competitive with other online gaming locations. It is therefore expected to create an influx of betting companies to the island, especially as the businesses in Tasmania are able to advertise in the UK.
A comprehensive report in our Intelligence Report series examining the new possibilities that offshore e-commerce open up for business, and analysing the offshore jurisdictions that have led the way in offering professional e-commerce regimes for international business, with a particular focus on e-gaming, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report6.asp
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