Australian Online Gaming Operation Wins 50% Tax Cut

by Mary Swire, Tax-News.com, Hong Kong

21 November 2001

International gaming operator Lasseters Corporation Limited, Australia's first regulated online casino, has reached an agreement with the Northern Territory government to reduce its online gaming tax rate by half from 8 per cent to 4 per cent of gross gaming revenue and to extend the company's online gaming licence for up to 22 years.

At Lasseter's Annual General Meeting in Brisbane this week, Managing Director, Mr Peter Bridge, claimed the measures will reduce the company's costs and improve global competitiveness.

'The Northern Territory's new tax rate is the lowest in Australia and compares favourably to the lowest in the world,' said Mr Bridge. 'This is critical for ensuring that our cost structure is competitive in a global market which operates on very tight margins.'

He calculated that in 2001, the lower tax rate would have saved the company almost $600,000 based on Lasseters Casino's revenue of $14.7 million. 'This is an enormous cost saving that can be invested in strengthening Lasseters' operational base and financial position,' he added.

Mr Bridge said the agreement also provides unprecedented regulatory certainty within Australia's online gaming industry. 'After the uncertainty about online gaming regulation in Australia created by the Federal Government over the past few years, we welcome the stability of up to 22 years under a consistent operating agreement,' he said.

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