Victorian budget 2018-2019: no mention of the point of consumption tax on betting

On Tuesday, May 1, the Victorian Government established the state’s budget for 2018-2019 but, in spite of rumours of a point of consumption tax being introduced for corporate bookmarkers, lawmakers did not include this topic on the agenda.

Lawmakers from several other Australian states declared that they would introduce a point of consumption tax in order to receive part of the income that remote gambling operators made on their territories. During last year’s talks, the Victorian Government expressed their intention of taking similar measures, but it seems that it will not happen too soon.

Due to lower taxes, the vast majority of Australian bookmakers are registered in the Northern Territory, but they operate across the entire continent. As a result, more state governments have decided to introduce a tax – the point of consumption tax – so that these betting houses had to pay a percentage of their profit to the states where they were servicing, even though they were licensed in another territory.

The tax value depends on local state policies. For example, in South Australia the point of consumption tax on betting is at 15%. As of 2019, Western Australia will implement the same tax. Other states, such as Queensland and New South Wales, have not included this in their budgets yet, but they have promised to do so and have published discussion papers in this regard.

Victorian lawmakers expressed their intentions of introducing the point of consumption tax of 8% in 2017, so many expected the announcement on Tuesday, but it seems that the tax will not come into effect in 2018 or 2019. According to State Treasurer Tim Pallas, lawmakers are still discussing the matter of the point of consumption tax and the public will receive more details on the matter in the upcoming months. Should the tax be introduced eventually, it could generate up to 150 million Australian dollars per year for Victoria.

The point of consumption tax not being mentioned in the budget announcement raised concerns regarding the aggressiveness of betting ad campaigns. A gambling ad ban is currently in place, as the federal government forbids bookmakers from advertising their services during live sports events between 5 am and 8:30 pm. This measure was taken to reduce the exposure of certain categories of the population (especially children or people with history of gambling addiction) to tempting ads and prevent them from gambling irresponsibly, but the lack of a concrete measure has people worried that betting operators will launch aggressive ad campaigns. According to the latest research, a typical Australian betting enthusiast loses around A$1,000 on gambling and there is a great deal of public concern on how much young people are exposed to misleading gambling ads. This is one of the reasons why in 2017 Victorian lawmakers banned gambling ads on public transport and near schools.

As other states implement point consumption taxes and Victoria delays taking measures in this regard, the territory will become more attractive to betting operators, who are likely to increase their activity in this sector. Considering that the Australian betting industry keeps on growing, lawmakers are under pressure to regulate their activity and provide a sustainable legal framework in the best interest of Australian bettors.

Gambling advertising just became much more complicated

People got used to the many ads popping on television, radio or other digital sources in terms of gambling. Well, this is no longer allowed due to the tighter regulations set by the government. Tabcorp, which is entirely based on online sports and horse racing betting will suffer tremendously given the new regulations. Promotions that are somehow related to gambling or betting in any way will be entirely banned. Even though punters considered these ads extremely helpful, they are now unavailable. Chasing expected losses is no longer considered ethical, and live betting encourages impulse betting. This is the main reason why the NSW Government makes active efforts to reduce the harm of gambling ads.

Third-party marketing or social media are also included in this category and carefully analyzed by the NSW Government. All sorts of international gaming and wagering businesses will be directly targeted by the legislation of the country. Not respecting the new regulations will lead to serious consequences such as fines or even criminal convictions, in extreme cases. All corporate bookmarkers will face a major breakdown considering the fact that they can no longer attract new clients through media and advertising. Newspapers who included special categories for gambling bets will have to cut them down while racing broadcasters might remain out of material to present.

Famous publications like The Daily Telegraph or Herald Sun who previously dealt with wagering advertising need to renew their content based on the new rules. The Principal Racing Authorities also consider that the impact of such legislation changes could affect their media rights. Numerous wagering operators are entirely based on advertising and such a dramatic change could restrict many of their actual possibilities. In addition, directors and senior managers are directly liable for any offense committed.

Because of the mass ban of gambling advertising, many people started to worry about the future of the industry they are working in, the reason why they addressed their issues to the Government, waiting for a response. Yet, the NSW considers any gambling ad against the law and will treat it accordingly. The penalties are substantial and difficult to ignore, starting from$5,000. The directors of various wagering companies are still unpleased with the lack of communication between the government and the industry itself. Colossal names such as bet356, Betfair or Unibet are suffering the consequences of this decision. They continue to sustain that a consultation considering these major changes would have been required beforehand.

The regulatory environment set by the NSW government affected the wagering industry. The television audience was entirely captivated by betting ads, the reason why it is difficult to ignore the aftereffects of this decision. The NSW Government decided to include new regulations during the upcoming weeks. RWA stated that they accept any regulations coming from the NSW Government as long as it takes into consideration the implications they have upon digital platform advertising, broadcasters and national publications. Racing.com or Best Bets could end their activity because of the on-going process, so having regard to all points of view is absolutely paramount in the present situation.

Star Entertainment Group – a prosperous company in modern casino industry

Star Entertainment Group is one of the largest entertainment groups in Australia. There are many casinos as well as properties of the group which are located at several locations of the country. Formerly known as Tabcorp the name was changed to Star Entertainment Group in 2015. The company also runs casinos and hotels which is the largest business part of the corporation. The Star Entertainment Group is known for the quality entertainment all over the country and therefore it is highly regarded. The quality of the services is the best and the most advanced ones which have led to the landing of several awards across all the categories. Star Entertainment Group is also known for its long list of ventures with other companies.

Share pricing and current tactics

The current volatility rate of the shares of Star Entertainment Group is 3.08 listed on the stock exchange. As of today the latest volatility trends of the company shows that the trends are moving negatively and therefore the investors are sizing up the company. Today the trading of the stock value is fluctuating and therefore it is highly speculated that the returns will vary. At the same time, it is also advised to all the investors to not speculate and buy shares based on current trends. Complete research of the group is highly advised before making the move. Taking into account the trends of the company at the stock exchange will also help a lot.

Future value of the Star Entertainment Group

Many investors and even companies are speculating that the Star Entertainment Group is much undervalued when it comes to its future growth. In the upcoming years, it is speculated that the company will grow at the rate of the 21% approx. It also means that the stock exchange will definitely see the record-breaking performance by the group. Before making a purchase it, therefore, advised to all the investors to perform health checks and analyze the results. Comparison to other stocks as well as over the time value fluctuation will also make the picture clear.

Huge price variation

The value of the Star Entertainment Group shares highly fluctuates over the period of time. For instance, 16 February 2018 has seen a flat crash of 7.5%. The stock exchange is just like a casino and we all know that. The stock crash also means that the earning per share will definitely fall which is not a good sign for the investors at all. There are many plus points as well for instance the growth of the company. It also means that the future of the company will see a growth and the stock exchange factors affecting Star Entertainment Group will not have a long-term effect.

The bottom line

It is neither too early nor too late to buy the stocks of Star Entertainment Group. It is a big name and therefore it is highly advised to new investors to wait and watch before making a move. It will make sure that you get the right return on your investment and face minimum loss.