[AusRace] (no subject)

[L.B.Loveday]

Quote: " Industry modelling has suggested that the corporate bookmakers
would have to raise their prices by up to 25 per cent to recoup the cost of
a point of consumption tax".

What a quaint way of putting it!

LBL

 

 

 <http://www.theaustralian.com.au/business> BUSINESS


Proposed wagering taxes to hit bookies profit, says Macquarie


Sportsbet could emerge the only profitable corporate bookmaker as state
wagering taxes gain traction, says Macquarie.

.          <http://www.theaustralian.com.au/author/Sarah-Jane+Tasker>
Sarah-Jane Tasker

.         The Australian

.         4:12PM January 17, 2018

https://i1.wp.com/pixel.tcog.cp1.news.com.au/track/component/author/67d225de
82574ab1cbc41387ea367b18/?esi=true&t_product=the-australian&t_template=s3/au
stemp-article_common/vertical/author/widget&td_bio=falseSportsbet could be
the only corporate bookmaker that remains profitable if a new wagering tax
is rolled out across Australia, according to investment bank Macquarie.

The bank has run the numbers on a 15 per cent Australia-wide point of
consumption tax, which showed that Sportsbet's rivals CrownBet, William Hill
and Ladbrokes would all struggle to turn a profit if hit with a national
tax.

Macquarie added in its client note that the bookmakers could mitigate the
tax though by lifting yields and cutting back on advertising and promotional
activities.

South Australia introduced a point of consumption tax last July, prompting
other states to follow its lead, which could see the tax introduced across
the country.

UK wagering giant William Hill announced this week it was reviewing its
Australian operation - led by Tom Waterhouse - warning new taxes and
regulations would hit its profit.

William Hill previously warned that a national point of consumption tax
would have a significant impact on corporate bookmakers because such costs
would be difficult to recover in a tough market. It said the tax would force
some operators to review their operations in the Australian market.

The South Australian regime is a 15 per cent tax on the net wagering revenue
of betting companies earning more than $150,000 a year and offering services
to South Australians.

Victoria is set to introduce a similar tax in July and NSW, Queensland and
Western Australia also have plans for a new wagering tax.

Industry modelling has suggested that the corporate bookmakers would have to
raise their prices by up to 25 per cent to recoup the cost of a point of
consumption tax.

Macquarie also highlighted in its note to clients that Australia's wagering
market generated around $4 billion in revenue in 2017.

Tabcorp (TAH
<https://markets.theaustralian.com.au/shares/TAH/tabcorp-holdings-limited> )
accounts for 63 per cent market share of the wagering market, with the
corporate bookmakers sharing the remaining 37 per cent and Sportsbet has the
biggest slice of that share with 15 per cent.

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://ausrace.com/pipermail/racing_ausrace.com/attachments/20180121/08bcdb95/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 111 bytes
Desc: not available
URL: <http://ausrace.com/pipermail/racing_ausrace.com/attachments/20180121/08bcdb95/attachment.png>