Gambling industry concerned by ACT government tax hike after Sportsbet decision

Responsible Wagering Australia chief executive Kai Cantwell's concerns come after an unexpected tax hike was understood to have infuriated one of Australia's leading betting agencies, who in turn banned Canberrans from their most popular promotions.

The Canberra Times revealed Sportsbet, one of Australia's biggest online betting agencies, subsequently cancelled their popular "Bet With Mates" promotion and bonus bets for everyone living in the ACT.

While Sportsbet has been evasive about its reasons behind the Canberra ban, it's believed it's because they were blindsided by the ACT government's decision to raise their betting operations tax from 20 to 25 per cent in this year's budget.

They did so without any notification to or consultation with the wagering industry.

That made it the highest tax of its type - generally referred to as a point-of-consumption tax - in Australia.

The ACT government predicted the increase would add $32 million to its coffers this financial year - up $10 million from last year.

But that has made it untenable for Sportsbet, who are part of RWA, to offer their Canberra customers their promotions.

It's believed they feel a PoC tax of 15 per cent would be more acceptable.

Sportsbet is seemingly the only betting company to have made this move, although The Canberra Times can reveal other betting agencies are considering their options.

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Ironically, the ACT government was taken by surprise by Sportsbet's decision.

ACT Gaming Minister Shane Rattenbury's office hasn't responded to questions asking whether the government planned to ban sports betting in the ACT.

Rattenbury's ACT Greens party unsuccessfully tried to end government funding of the Canberra racing industry on Thursday night.

It's their second attempt, having also tried to vote down the government's memorandum of understanding with the racing industry last year.

Cantwell said the wagering industry was worth $6 billion to the federal economy annually, while supporting 32,000 jobs. The ACT contributes $53 million and 2000 to that.

While he said it wasn't his place to speak specifically about Sportsbet's decisions, he was worried about the ACT landscape - one he said was unfortunate for Canberra punters.

"I'm certainly concerned about what the ACT government is doing with the wagering and racing industries, and perhaps trying to shut the industries down by stealth," Cantwell said.

"The wagering industry is an important industry in terms of federal economic policies.

"We contribute $6 billion to the federal economy, indirectly and directly support 32,000 jobs, and at the end of the day we are a legitimate entertainment industry that is highly regulated and pays our way in terms of taxes, licence fees and product fees."

It's believed Sportsbet and the wagering industry were hesitant to say too much because of the federal government inquiry into online gambling and its impacts.

The inquiry released its report and recommendations in June, proposing a ban on gambling advertising within three years and other measures, including a national strategy for online gambling harm reduction.

But Cantwell urged against "heavy-handed" regulation, warning it would cost multiple beneficiaries - including governments - "hundreds of millions of dollars" in revenue.

He felt online betting agencies were already in a unique position to help problem gamblers - given they knew exactly who their customers were and how much they were betting.

"A vast majority of people who engage in Responsible Wagering Australia members' platforms do so safely," Cantwell said.

"We have consumer protections that are well and truly superior to those offered in land-based forms of gambling - pokies, TAB machines and the like.

"You can whack a couple of thousand dollars through the pokies and no one knows how much you've put through. You don't even know.

"That can't happen in the online space."