Robin Hood tax on pokie profits

Robin Hood tax on pokie profits

UFA

 

 

 

PUBS and clubs in South Australia will be hit with a 65per cent “Robin Hood” tax on their earnings from pokie machines and other gaming activities, after the state’s Budget yesterday imposed the nation’s highest marginal tax rate for gambling.

 

Delivering the state’s first Labor Budget in nine years, Treasurer Kevin Foley declared an attack on the “super profits” collected by pubs and clubs that earn more than $2.5million a year in net gaming revenue.

 

Once they hit the $2.5 million mark, pubs will pay 65 per cent of their net earnings in tax, while clubs will pay 55 per cent. More than 90 venues in South Australia will fall into the top “super profit” bracket.

 

But smaller pubs and clubs could benefit from the new regime, with a new tax-free threshhold of $75,000 set, which is expected to benefit nearly 370 pubs and clubs — 246 of them in the bush. The new threshhold means small operators will pay no, or reduced, gaming taxes. Rates for Adelaide’s casino have not been adjusted.

 

Nearly half the net gaming revenue in South Australia passes through just 13 per cent of venues and the two largest pokie venues in the state earned $5.6 million and $5.4 million before tax in 2001.

 

The regime is expected to deliver an extra $34 million to the state this financial year.

 

Government figures estimate South Australia’s and Victoria’s average hotel UFA gaming tax in 2002-03 at 41 per cent, with 37 per cent in Queensland and 24 per cent in NSW.

 

The new tax rate was attacked by the hotel industry as a recipe for job losses and bankruptcies.

 

But Norwood Football Club general manager David Wark welcomed the new tax regime for small and medium-sized clubs.

 

Private Casino for High-Rollers Approved

 

LAS VEGAS – As reported by the Associated Press: “For the first time since gambling was legalized in Nevada in 1931, high stakes gamblers may soon be allowed to place their bets in private.

 

”State regulators on Wednesday approved the MGM Grand hotel-casino’s application for Nevada’s first private gambling salon for high rollers.

 

”The Gaming Control Board unanimously voted to recommend the application for the resort’s owner MGM Mirage Inc. The salon is expected to open in August if the Nevada Gaming Commission approves the application at its July 25 meeting in Las Vegas.

 

”The private salon would be equipped with high-tech surveillance devices to allow regulators to monitor betting and ensure that the games are fair.

 

”…Bob Moon, marketing chairman for MGM Mirage, said the company will promote the salon to a limited number of foreign gamblers.

 

”…While MGM Mirage told the board the company has no intention of opening a private salon at any of its other casinos, another Las Vegas casino – Caesars Palace – has applied to open a salon.

 

”The Park Place Entertainment Corp. resort last month filed the second application for a salon since the Nevada Legislature last year approved letting casinos offer private gambling.

 

”…The new private casinos allow gamblers with at least $500,000 in cash or a credit line. Minimum wagers on private casino slot machines and table games will be $500…”

 

 

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