Tax Hike Risks Undermining NT’s Standing as Australia’s Online Wagering Hub

Industry Blindsided by Sudden Policy Shift

The Northern Territory Government has moved to increase the tax burden on licensed online Wagering Service Providers (WSPs), doubling the annual cap without prior engagement with the sector. Responsible Wagering Australia, the national body representing many major wagering operators, has criticised the decision as premature and potentially destabilising.

“This decision, made before the Review has had a chance to lay that strategic vision, has blindsided WSPs and materially undermines any outcome of the Review,” said Kai Cantwell, CEO of RWA.

The announcement comes ahead of the final report from the Territory’s Racing Industry Review – a process intended to help define long-term policy and financial frameworks for the local racing and wagering sectors. According to RWA, the timing of the tax change weakens the credibility and utility of the ongoing review.

NT’s Role as Licensing Hub at Stake

The Northern Territory has long been considered a central licensing base for Australia’s online wagering industry, home to over a dozen operators. RWA argues that the government’s unilateral move threatens to erode this position and may cause companies to reconsider their operations in the region.

In FY23, online wagering operators licensed in the NT contributed more than $150 million to the Territory’s economy. This figure includes $47.7 million in taxes and levies, $46 million in wages paid to local employees, and $2.5 million in direct fees to the racing industry.

RWA also noted that roughly 600 Territorians are employed in high-skilled roles at WSPs headquartered in the Territory, with the broader workforce exceeding 1,000 when all licensees are included.

Warning Signs from Other Jurisdictions

The situation echoes previous developments in Queensland, where similar concerns were raised following that government’s tax increases and its own Racing Industry Review. RWA has argued that heavy-handed taxation policies risk reducing overall wagering activity, which in turn could lead to diminished financial support for both racing and community programmes.

The organisation has also flagged the risk of illegal offshore operators gaining market share as a result of increasing regulatory pressure on licensed operators. RWA continues to call for governments to engage in transparent consultation processes and to consider long-term sustainability when shaping taxation frameworks.

Call for Reconsideration and Dialogue

RWA has urged the Northern Territory Government to reconsider the tax cap hike and to delay any major fiscal changes until after the Racing Industry Review delivers its findings. The group maintains that a collaborative, evidence-based approach is necessary to preserve the NT’s competitiveness and maintain the integrity of Australia’s regulated wagering environment.