How Pokies Add Billions to the Australian Economy

In Australia, gambling is one of the main components of the local culture. Many Australians work in the gambling industry, and four out of five adults in the country gamble regularly. In short, almost everyone in Australia knows about pokies online. It is not surprising that the gambling industry has an impact on the economy of this state.

How Much Money Australia Makes Thanks to Gambling

Since 2001, Australian gamblers have not paid taxes on winnings in Australian online pokies as cash prizes are considered to be erratic and irregular earnings. Australians spend about 3% of their income annually on gambling. Every year gamblers spend on online pokies Australia real money in the amount of $20 billion.

Based on data for 2020, with government revenues of $459 billion, about $69 billion was generated by the gaming industry. The total annual income to the Australian budget consists of 15% of tax revenues from gambling operators, among which it is important to highlight the following:

  • turnover tax (imposed on sports bets and lotteries);
  • taxes on the lost player (online pokies Australia, betting shops, sweepstakes are obliged to pay);
  • tax on net income (income received from poker and sweepstakes is taxed);
  • license fee (required to pay Australian online pokies, bookmakers, lotto, and everyone who has been granted a license to gamble on the Internet).

The country periodically develops new, more affordable and simpler online gambling legalization schemes, introduces various bonuses attractive to casino players. The authorities are more than tolerant of land-based and online gambling businesses, believing that bans and barriers only exacerbate problems. On the other hand, online casinos in Australia are not approved, and it is the responsibility of players who play or don’t play at such gambling establishments.

Certain Regions Also Earn

Australia is distinguished by a peculiar administrative division. This country has six states, three mainland territories and several more outer regions. Each administrative unit has its own legislation, which issues a license for real online pokies.

The South Australian government introduced a new tax for online pokies real money and the entire gambling industry in 2016. Its goal is to get additional income for the budget. The tax will affect international operators that previously benefited from the reduced rates. The authorities estimate that this tax generates about AUD 9.2 million ($6.9 million) annually.

The tax works the same as in the UK. It is charged depending on where pokies online Australia is played, and not on where the company is located. Basically, a gambling license is issued for bookmakers and sweepstakes for a specific region. If you need Australia online pokies license, carefully study the terms of each jurisdiction. Maintaining a weighted tax based on the geography of users allows the government to make sure that the business pays taxes in the jurisdiction where it makes money. Australia has one of the strictest codes and regulations regarding gambling. The government of the state has developed rather strict rules and laws to protect the rights of its citizens and replenish the country’s budget through taxes on gambling activities including online pokies.

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