Taxation of Gambling in Australia: Final Steps

Australia’s gambling landscape is being reshaped by recent tax reforms across every state and territory. Full details of these changes can be found here. Australia has implemented point-of-consumption taxes, ramped up corporate levies, and introduced new cashless payment requirements—all impacting land-based venues and digital platforms. The reforms are hitting the online casino industry hard, influencing player behaviour, operator strategies, and state revenues alike.

How Point-of-Consumption Tax Reshapes Operator Strategies

Since 2019, Australian states have rolled out point-of-consumption taxes (POCT) on wagering and digital gambling. This means operators now pay tax based on where their customers reside—not where headquarters are located. Current POCT rates range between 15–25% of net wagering revenue in New South Wales, Queensland, Victoria, and South Australia.

Annual wagering turnover across Australia is about AUD?244.3?billion, while total player losses reached AUD?31.5?billion in 2022–23. With POCT now covering online platforms, including what falls under the online casino sector, state governments capture a larger share of digital revenue. As a result, gaming companies must strike a balance between offering bold promotions and maintaining profitability under tougher tax regimes.

Northern Territory Introduces Aggressive Profit Tax

The Northern Territory now imposes a 50% profit-based tax on licensed digital gambling operators. This represents a drastic increase from the previous flat fee structure. This change alone is expected to generate at least AUD?17.7?million more in annual tax revenue.

Many Aussie online casino providers that previously chose NT licences for lower taxes are now reassessing their options. The new profit tax pushes operators to rethink their licensing strategy and adapt to stricter financial obligations. This change reflects a wider push to close loopholes and create fairer tax contributions across Australia’s digital gambling market.

Taxation of Traditional Gambling: State and Product Breakdown

Land-based gambling taxes in Australia depend both on the state and the type of game. In Victoria, for example, casinos pay progressive rates on gross gaming revenue from electronic gaming machines (EGMs), with tax brackets starting at 31.6% and climbing as high as 51.6% based on revenue. An additional 1% community benefit levy also applies.

Across other states, taxation structures differ depending on product categories:

Pokies in pubs and clubs continue to dominate local gambling, pulling in over AUD?147?billion in turnover during 2020–21 and driving player losses beyond AUD?12.2?billion.Lotteries face some of the toughest taxes in the country, with rates climbing as high as 90% of ticket sales in certain states.Table games in casinos are generally taxed at lower rates than pokies, though the exact figures vary by location.Online casino games, especially those mirroring pokies or live dealer tables, now fall firmly under point-of-consumption tax schemes, tightening oversight on digital play.

Big names like Tabcorp and Tatts Group remain central to state revenues, delivering billions annually from wagering, lotteries and casino products. This layered tax system allows states to capture more from high-turnover products while supporting public programs.

Federal Regulation and Online Market Boundaries

At a national level, the Interactive Gambling Act limits many online casino services, particularly slot games and live casino activities, although licensed sports betting is permitted. The Australian Communications and Media Authority (ACMA) continues blocking unlicensed offshore sites to protect consumers.

Current estimates place Australian online gambling revenue at around AUD?15 billion in 2024, making it one of the largest digital gaming markets in the world. Recognised Australian online casino platforms now work through licensed Australian or international jurisdictions to stay compliant while satisfying local regulatory expectations.

Revenue Impact and Industry Response

Reforms have significantly affected operator margins. Recent reports show that Australian net gaming revenue fell from AUD?831?million in 2022 to AUD?763?million in 2023 for major providers like Entain (owner of Sportsbet, Ladbrokes and Neds). This pressure has triggered a shift in operational focus to premium customer acquisition and loyalty programs.

To maintain market position, operators now tout themselves as the best online casino brands, enhancing loyalty rewards, personalising promotions and emphasising safe-play tools. Many are partnering with streaming services and sports leagues to offset tax pressure and widen their reach.

The Cross-Industry Impact

Gambling tax reform affects multiple sectors: pubs, clubs, hospitality, technology and financial services. Payment providers now facilitate smoother, regulated e-wallet transactions, keeping more consumer spending within licensed ecosystems. States project AUD?2 billion or more in annual gambling tax revenues by 2026, with contributions from pokies, wagering, and casino online platforms.

And what about New Zealand?

While Australia restructures its gambling market, neighbouring New Zealand has also introduced important updates in 2025. A new 12% offshore gambling duty was applied to gross gaming revenue, effectively raising total taxes on offshore operators to around 25%. The government also introduced the Online Casino Licensing Bill, aiming to licence up to 15 online casino operators by mid-2026 under strict regulations. Additionally, the Problem Gambling Levy remains fixed at NZD?81?million through 2028, after proposals to increase it were dropped. These changes show a clear move toward higher taxes on offshore platforms and a regulated online casino market.

What’s Next for the Online Casino Market?

Australia’s gambling tax reforms signal a transformation of the market ecosystem:

Operators must navigate enhanced compliance and reduced tax arbitrage.Players benefit from responsible gaming tools and greater transparency.States secure reliable revenue streams to invest in public services.

As reforms further cement regulation over digital platforms, the online casino Australia market looks set to stabilise under clear rules and mature consumer expectations. Licensed platforms that adapt to consumer safety measures and embrace fair competition will thrive. The industry is heading toward smarter, safer and more sustainable digital wagering in Australia.