Responsible Wagering Australia (RWA) says it has been “blindsided” by the Northern Territory government’s planned changes to gambling taxation.
The trade association has expressed “serious concern” over plans to double the annual tax cap for bookmakers and betting exchanges – from one million to two million revenue units – from July 1, 2025.
The government also wants to establish a 50 per cent tax rate on profits – less goods and services tax (GST) – from lottery ticket reselling and matching activities under internet gaming agreements.
It is hoped that, together, the changes will raise revenue from gambling from AU$115.5m in 2024-25 to $150.2m in 2028-29.
But RWA described the move as “economically reckless” and said it puts the Territory’s status as a “stable and competitive licensing jurisdiction” at risk.
The association said the budget announcement for 2025-26 came without any industry consultation and before the final report of the Northern Territory government’s Racing Industry Review, aimed at informing the future outlook for the sector.
“RWA have participated meaningfully in the review and eagerly anticipated a new strategic vision for racing in the Territory. This decision, made before the review has had a chance to lay that strategic vision, has blindsided WSPs [wagering service providers] and materially undermines any outcome of the review,” RWA CEO Kai Cantwell said.
Bill Yan, Member of the Northern Territory Legislative Assembly for Namatjira, said: “Taxation and royalty revenues are expected to increase by $142m in 2025–26, driven by improved royalties and reforms like the new gaming tax arrangements.
“That’s more funding to invest in safer communities, better services and real economic growth.”
Yan added that the 50 per cent tax rate on profits will “standardise” the taxation of internet gaming in the Territory and “ensure a level playing field for online operators who offer ticket re-selling or matched lottery products.”
RWA noted that in 2023, licensed online gaming and betting operators in Australia contributed more than $150m to the Northern Territory economy, including $47.7m in taxes and levies.
“The NT government was elected on a platform of driving economic growth, delivering a competitive tax and investment environment and attracting private investment, with Chief Minister Lia Finocchiaro stating the Territory is ‘open for business’ and passing legislation to ‘strengthen our ability to deliver economic growth and attract investment’ - yet this policy decision directly contradicts that commitment and risks undermining investor confidence in the Territory,” Cantwell said.
He claimed that while the government’s planned review into the sector was designed to guide “long-term, evidence-based and sensible reform,” this has “taken a back seat to short-term revenue grabs.”
“A financially sustainable and well-regulated racing and wagering industry is critical to ensuring its long-term viability and the significant economic and employment benefits it delivers to Territorians,” Cantwell said. “Rather than imposing blunt tax increases, the government should be working with industry to identify growth opportunities that will ensure the Territory’s continued leadership as a licensing jurisdiction. “We are calling on the Treasurer and Chief Minister to reconsider this decision and to engage in genuine consultation with the industry before moving forward."
