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Future of Australia’s online wagering hub at risk after UK tax hike decision
The Northern Territory Government’s new budget decision has sent Australia’s online wagering sector into a tizzy. Responsible Wagering Australia (RWA) has warned that the NT Government’s decision to double the tax cap could undermine the region’s role as a strong licensing hub and also block incoming investments.
The decision of major policy change was taken without informing the industry
In the 2025–26 Budget, the NT Government suddenly doubled the annual tax cap for licensed online wagering service providers (WSPs) without any consultation. The RWA has described this move as “rushed” and “costly”. RWA CEO Kai Cantwell said,
“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 at a time when everyone was awaiting the final report of the NT’s Racing Industry Review, a process that will define the future policies and financial structures of the local racing and wagering sectors. The RWA believes the timing of the tax hike undermines the credibility of the review.
UT’s licensing hub status at risk
The Northern Territory was known as one of the major licensing centres for Australia’s online wagering industry, with more than 12 operators based there. But according to the RWA, this one-sided decision by the Government is putting its reputation at risk.
According to financial year 2023 data, licensed online wagering companies in the NT contributed more than ₹150 million to the Territory’s economy. This includes ₹47.7 million in taxes and levies, ₹46 million in wages for local employees, and ₹2.5 million in direct fees paid to the racing industry.
RWA also highlighted that around 600 people are employed in high-skilled jobs in WSPs in NT, and the total workforce is more than 1,000 when all licensees are included.
Warning is being received from other states
This situation is similar to that in states like Queensland, where tax increases have raised concerns in the wagering and racing sectors. RWA says aggressive tax policies directly impact wagering activities, which could reduce financial support for racing and community programs.
At the same time, this could also be an opportunity for illegal offshore operators to carve out a niche in the market by taking advantage of regulatory pressure on licensed operators.
RWA suggests an open dialogue with the Government
RWA has urged Northern Territory Government to reconsider tax cap hike and make any major fiscal decisions following the results of the Racing Industry Review. They say transparency and an evidence based approach are important to maintaining a sustainable and competitive wagering environment.
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