Betfair To Remain In Tasmania After Tax Break Deal
Wednesday, February 24, 2010
Following discussions that began last year after the Tasmanian government changed
its taxation of on-line gamblers, Betfair has now reached an agreement with
the government to maintain its presence on the island.
Last October, the Tasmanian government abolished its 15% gambling tax for on-line
bookmakers, in favour of a flat annual license fee of only AUD250,000 (USD225,000).
This led Betfair, who would have still paid the original tax based on turnover,
to look at its options off the island.
At that time, Betfair appeared to say it would require a level playing field
with other operators if it was to stay, while the island’s government
said that it was confident that an arrangement could be made to ensure that
its association with Betfair would continue long into the future.
It is now reported, however that the Tasmanian government has made a ten year
deal, with tax incentives, to convince Betfair to maintain its operations, with
over 130 jobs, in the state. The government has said that the agreement, which may reduce the tax on betting
exchanges to 5% amongst other conditions, will reduce the state’s taxes
by some AUD2m over the next two years.
The agreement with Betfair will not be able to be ratified until after the
state parliamentary elections that are to be held next month.