Nsw Gambling Tax Revenue
The point of consumption tax is calculated at 10 per cent of the net NSW wagering revenue that exceeds the financial year threshold for bets that are placed in NSW.
Net NSW wagering revenue
Your net NSW wagering revenue is calculated as the sum of the following.
The Act requires each casino licence in NSW to make contributions to the Fund, with contributions currently set at two percent of gaming revenue. Money may also be paid into the Fund as a community benefit payment or gaming machine lease levy under the Gaming Machines Act. A basic economic and financial breakdown of gambling, and New South Wales government revenue from gambling, is presented (pp.16-21) NSW government revenue raising from racing, poker machine playing and lotteries has expanded significantly during this century (pp.21-33) the development of casinos in Australia and in New South Wales is outlined.
| 1. NSW totalizator bets | Total of all your NSW revenue from totalizator pools during the period. |
| 2. NSW betting exchange bets | Total of all your fees and commissions for NSW betting exchange bets. |
| 3. Other NSW bets | Calculated by: Total of all NSW bets, including bets placed at fixed odds and totalizator derived odds, and the face value of any free bet. plus Total fees and commissions associated with making the bets. less Total winnings paid or payable in relation to those bets, including winnings paid for free bets, but not including winnings paid in the form of credits or entitlements that can't be converted to money. less Total refunds paid or payable in relation to those bets, not including the amount paid or payable in credits or entitlements that can't be converted to cash. |
| 4. Unclaimed winnings for NSW bets | Amounts you're entitled to retain for unclaimed NSW winnings during the period. |
| 5. Other amounts | Amounts you're entitled to be paid in relation to unclaimed NSW winnings during the period. |
Taxable net wagering revenue
When preparing your monthly returns, calculate your net NSW wagering revenue and deduct the threshold entitlement for the financial year.
Calculating a free bet
The face value of a free bet (also a bonus bet) must be included when calculating your net NSW wagering revenue. Any amount reclaimed from a successful bet must not be included as part of total winnings.
Example 1: Customer A receives a free bet valued at $200, which results in zero winnings.
| Total other NSW bets | $200 |
| plus total fees and commissions | $0 |
| less total winnings | $0 |
| less refunds | $0 |
| Other NSW bets | $200 |
Example 2: Customer B receives a free bet valued at $200, which results in a gross win of $750.
The betting operator deducts $200 (value of free bet) from the gross winnings, resulting in a net winning of $550.
| Total other NSW bets | $200 |
| plus total fees and commissions | $0 |
| less total winnings | $550 |
| less refunds | $0 |
| Other NSW bets | -$350 |
Bets placed before 1 January 2019
Nsw Gambling Tax Revenue Calculator
Net NSW wagering revenue is calculated according to when a bet is placed and the cash received, not when an event occurs or a bet is settled.
Bets placed before 1 January 2019 aren't subject to point of consumption tax. Winnings from these bets can't be claimed as a deduction when calculating your net NSW wagering revenue.
Determining a customer’s location
| How bet is made | Customer's location |
|---|---|
| On course or in person | All bets placed from a venue within NSW are captured based on the location where the transaction takes place. |
| Online or by phone | All bets placed online or by phone are captured based on the physical location of the customer when placing a bet. |
You must take reasonable steps to identify the physical location of the person making a bet. You can rely on:
- the residential address of the person making a bet
- the principal place of business of the corporation making a bet.
You must use an alternative address if you know or suspect the residential or business address isn't the physical location of the person making the bet. For example, where a customer discloses to the phone operator that they are currently in NSW and their residential address is in another state.
Liquor & Gaming NSW will undertake compliance activities to ensure that the customer’s address is accurate. Interest and penalty tax may apply where reasonable steps have not been taken to capture the physical location of the person making the bet.
GST and net NSW wagering revenue
Net NSW wagering revenue is the GST inclusive amount.
Example
A betting service provider receives $5,000 in bets and pays out $4,000 in winnings. Point of consumption tax will be payable on $1,000.
We're responsible for administering, collecting and managing debts of gaming and wagering tax payable in NSW, on behalf of Liquor and Gaming NSW.
Find out more about COVID-19 (coronavirus) and gaming machine tax.
The taxes applied to gaming and wagering in NSW are based on:
- what kind of gambling is being offered
- who's providing the gambling services.
Gambling tax rates
Nsw Gambling Tax Revenue Department
| Type | Description | Tax applied |
|---|---|---|
| Totalizator | A system that allows people to bet on outcomes and distributes betting revenue to the winning bets. | Percentage of player losses – ie bets placed less payouts. |
| Fixed odds | An operator agrees to pay specified amounts against specified events. | Rates vary. |
| Public lottery | A game of chance including a game such as lotteries, keno and soccer football pool. | Rates vary. |
| Point of consumption | Payable on all bets made by customers who are located in NSW. | 10 per cent of the net NSW wagering revenue that exceeds the financial year threshold |
Legislation
Nsw Gambling Tax Revenue Online
Gambling taxes are regulated under the following legislation.