Racing Queensland just increased their share of tax revenue, while also increasing the tax rate on horse racing operators.
The changes will come out of the operator’s pockets at first, but the horse bettors may be the ones hurt the most in the long run.
DEAGON – Racing Queensland, the governing body for thoroughbred horse racing in Queensland, Australia, just announced significant taxation and funding changes that will affect the state’s booming horse racing community. Online racebook operators will see a five percent tax increase from 15% to 20% and Racing Queensland will now receive 80% of all tax revenue generated. Previously Racing Queensland had received only 35% off all tax revenue.
The massive shifts in both tax rate and in the allocation of funds was announced by Racing Queensland this morning.
What The Changes Mean For Horse Racing In Australia
With the large shift to increase the pool of tax revenue and to change where that money is going, it is only natural for those who enjoy horse betting to wonder what the changes mean. According to the Racing Queensland announcement, the changes will result in:
Secure Funding: Short-term government funding initiatives had been funding Queensland’s racing community. Funds are guaranteed and can be budgeted as such.
Infrastructure Improvements: As the horse racing community has grown in Australia, it became apparent the current infrastructure could not support it. More money means better training facilities, breeding programs, and events.
Increase In Prize Money: Jockeys, clubs, and trainers alike will all see a large increase in prize money for each race. The specific increases have yet to be announced, but this was a point of emphasis.
Long Term Outlook Of Horse Racing In Australia
The key storyline to monitor for sports betting in Australia will be how odds may change now that sportsbooks and racebooks have to pay the governing body more.
Starting next month those legal online sportsbooks that are regulated through the Australian government will see revenue fall as a result of the five percent tax increase on operators. As those businesses adjust, they are likely to offer worse odds as they try and regain some of that lost revenue.
With worse odds on the horizon for bettors that use Australian-regulated sportsbooks and racebooks, there may be a shift to internationally regulated sportsbooks/racebooks that will not have to change their odds due to tax hikes.
News tags: Australia | Horse Racing | Racing Queensland
Brett is a passionate sports writer who majored in Sport Management at Florida State University. He combines his knowledge of stats with his understanding of game theory to find the best values when sports betting. Brett enjoys golfing, playing cornhole, and hanging out by the pool when he’s not locked in watching games.