Bookmakers hit with double tax cap in Australia's Northern Territory

Neha Soni
Written by Neha Soni

The Northern Territory (NT) government in Australia has announced a significant change to its wagering tax framework, doubling the annual tax cap for corporate bookmakers and betting exchanges. The move, part of the 2025–26 budget and effective from 1 July 2025, is expected to bring in an additional A$13.1 million (US$8.4 million) annually.

The Racing and Wagering Act 2024 is being amended by the NT government to double the annual tax cap applicable to licenced corporate bookmakers and betting exchanges from 1 million revenue units to 2 million. Meanwhile, bookmaker tax revenue for 2025-26 is expected to increase to $32.6 million. It is further expected to average $33.6 million per year over the forward estimates period, reflecting the doubling of the bookmaker tax cap from 1 July 2025.

Uniform 50% tax rate for licenced online operators

At the same time, will be implemented for all internet gambling licensees. The move, also effective 1 July, is expected to generate an additional tax revenue of A$17.7 million per annum from 2025-2026. The uniform tax will override existing agreement-based tax setting for licenced operators. With all changes considered, the NT government expects to collect AU$145 million in gambling tax revenue for the 2025–26 fiscal year.

Source: Northern Territory 2025-26 Budget

Criticism on proposed budget

However, the budget has been reportedly met with criticism. Responsible Wagering Australia (RWA) has voiced sharp criticism over the tax cap increase. CEO Kai Cantwell stated that the decision blindsided the industry, especially given that it came without prior consultation.

“RWA have participated meaningfully in the review and eagerly anticipated a new strategic vision for racing in the Territory,” Cantwell said, as quoted by media. “This decision has blindsided wagering service providers

“We will continue to advocate for a licensing environment in the Northern Territory that upholds the highest standards of consumer protection while also incentivising business to invest in the local economy.”

Adding more fuel to the fire, the announcement comes before the release of the government’s own Racing Industry Review—a report commissioned to provide strategic direction for long-term sustainability in racing and wagering. Cantwell noted and criticised this, suggesting that the tax changes contradict the very purpose of the review. “It sends a message that consultation, process, and industry sustainability have taken a back seat to short-term revenue grabs,” he said.

Australian 바카라s’ trouble

In other gambling news, Australian 바카라s are losing ground to Asian rivals as more burdensome domestic regulations drive away high-value international gamblers, with experts warning that overly strict rules may be harming the industry without effectively addressing problem gambling. Once known for attracting wealthy foreign patrons, Australia’s 바카라 industry is now facing a sharp decline in international play. High rollers are instead turning to markets such as Macau, Singapore, and even emerging gaming hubs in Cambodia and Laos, where regulatory approaches are viewed as more balanced.

Turning to regulation, last month, Australia’s communications watchdog stepped up its campaign against illegal gambling, ordering internet service providers (ISPs) to block a fresh round of websites found to be operating unlawfully. The Australian Communications and Media Authority (ACMA) announced that it blocked websites Megabet Prize, Mega Medusa, and TF2Royal. Furthermore, the body has  on several new platforms, including Casino Australia Online and Pokies.bet, Pokiesman, and Smart Pokies. The move follows investigations revealing that these services were in breach of the country’s Interactive Gambling Act 2001.

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