Lasseters Corp. Ltd. got a double gift from the Northern Territory government today--a 50 percent reduction in the online gaming tax rate and an extension of its Internet casino license.
The Northern Territory's gaming tax rate will now be 4 percent instead of 8 percent of gross gaming revenue, and there will be no annual fee. In addition, Lasseters' gaming license, which was due to expire in 2003, was renewed for up to 22 years.
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"After the uncertainty about online gaming regulation in Australia created by the federal government over the past few years, we welcome the stability of up to 22 years under a consistent operating greement."
-Peter Bridge
Lasseters
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Peter Bridge, managing director for Lasseters, said the lack of an annual fee puts the casino at an advantage to operators in Tasmania, which has a comparable tax rate of 4 percent but charges casinos an annual fee of AU $310,000.
Bridge said the government wanted to set up a competitive tax structure to entice other online casino operators to set up shop there. While MGM Mirage has a land-based casino in the territory, Lasseters is the only online betting firm there.
"They are in the business of encouraging business, and this is a business that they recognize should be regulated and welcome in the northern territory," he said.
Lasseters' license was officially extended until 2018, but Bridge said there is a five-year renewal option. The new long-term license will give the company needed regulatory certainty so that it can develop its business with long-term goals in mind.
"After the uncertainty about online gaming regulation in Australia created by the federal government over the past few years, we welcome the stability of up to 22 years under a consistent operating agreement," he said.
Bridge said there is renewed interest in online gambling in Australia now that the country has seen its moratorium expire and its federal government reelected. Lasseters, which had an online gaming license in Queensland but allowed it to expire when the state refuse to lower the tax rate from 50
percent of gaming revenue, will use the money it saves in taxes to strengthen its operational base and financial position, Bridge said.
We've been in this business for three or four years, and we know that a 50 percent tax rate is just not sustainable, especially when we can operate at 4 percent," he said.
Bridge said he hopes the competitive tax rate will bring other online casinos to the Northern Territory.
"We're hoping that this move will encourage other operators to the Northern Territory because we have the view that a rising tide will float all boats, and if we can get some more regulated, credible operators operating in our jurisdiction, we should be able to influence the government more on liberal regulatory standards," he said.