Nsw Poker Machine Revenue
We're responsible for administering, collecting and managing debts of gaming and wagering tax payable in NSW, on behalf of Liquor and Gaming NSW. Find out more about COVID-19 (coronavirus) and gaming machine tax. The taxes applied to gaming and wagering in NSW are based on: what kind of gambling is being offered; who's providing the gambling. The A$1 billion a year that club and pub poker machines now contribute to Victoria’s revenue – along with the $500 million from other gambling forms – is a decent bucket, it might be argued.
The NSW Government has announced gaming machine tax relief measures as part of its economic stimulus package to help clubs and hotels impacted by COVID-19
Across NSW, clubs netted a combined $1.21 billion in poker machine profits during the six month period – down 37.6 per cent from $1.9 billion during the same period last year. Mounties Club at Mount Pritchard was one of the top earning clubs for poker machine profits. New figures released by Liquor and Gaming NSW show reducing poker machines across NSW is not slowing their revenue growth, which rolled up 7.3 per cent this year, despite more than 500 machines. COVID-19 restrictions on poker machines put a $1.1 billion dent in net gambling profits at NSW pubs and clubs, but they still cleared $2.1 billion in the first half the year and, more recently, have been more profitable than the same time last year.
Gaming machine tax is paid on the metered profits of gaming machines in clubs and hotels within NSW. The tax is
- based on information collected by the Centralised Monitoring System (CMS).
- administered by Liquor and Gaming NSW
- calculated at varying rates according to the profits generated
- collected by Revenue NSW on behalf of Liquor and Gaming NSW and in accordance with the Gaming Machine Tax Act 2001 No 72.
Paying taxes
If you operate gaming machines, you must pay the gaming machine tax quarterly by direct debit.
- Email your direct debit authority form to Liquor and Gaming.
- Data Monitoring Services (DMS) will send you a tax invoice 14 days after the end of each assessment period.
- We will debit your account on the 21st day after the end of the assessment period, or on the following working day if the 21st day falls on a weekend or public holiday.
- We will send you a reassessment if there is any change to the original tax invoice.
- If you do not pay by the due date you’ll be charged interest, calculated daily, on all outstanding amounts.
If you don’t pay the full amount by the due date, you may face legal proceedings and the suspension or cancellation of your gaming licence.
Invoice enquiries
If you have any questions about your tax invoice or would like to change the way it is sent to you
- contact Data Monitoring Services.
To challenge the calculation or reasons provided
- contact Data Monitoring Services if you disagree with their calculation.
- contact Liquor and Gaming NSW if you disagree with the reasons provided.
Tax payment due dates
The gaming machine tax is charged quarterly.
Due dates for clubs
| Assessment period | Due date | |
|---|---|---|
| 1 | 1 December to 28 February | 21 March |
| 2 | 1 March to 31 May | 21 June |
| 3 | 1 June to 31 August | 21 September |
| 4 | 1 September to 30 November | 21 December |
Due dates for hotels
| Assessment period | Due date | |
|---|---|---|
| 1 | 1 January to 31 March | 21 April |
| 2 | 1 April to 30 June | 21 July |
| 3 | 1 July to 30 September | 21 October |
| 4 | 1 October to 31 December | 21 January |
Paying by instalments
If you need financial support and are approved by Liquor and Gaming NSW, you can pay your gaming machine tax in three equal monthly instalments.
To find out if you are eligible for the tax deferral scheme, send an email to Liquor and Gaming NSW and include your
- licence number
- venue name
- period applicable.
If you’re not eligible for the tax deferral scheme contact us to request a payment arrangement.
Rates
You do not have to pay gaming machine tax if your quarterly profit from gaming machines is
- less than $250,000 and you operate a club
- less than $50,000 and you operate a hotel.
Tax rates for clubs
The rate for profits of more than $250,000 are set out below.
| Quarterly profit from gaming machines | Rate |
|---|---|
| Over $250,000 up to $450,000 | 28.05% |
| Over $450,000 up to $1.25 million | 18.05% |
| Over $1.25 million up to $2.5 million | 22.55% |
| Over $2.5 million up to $5 million | 24.55% |
| Over $5 million | 26.55% |
Clubgrants
Under the Clubgrants scheme
- if your annual tax is over $250,000, it includes a 0.4 per cent contribution
- if your annual profit from gaming machines is more than $1 million, you must pay an additional 1.85 per cent of the amount over $1 million, unless you contribute the same amount to community projects.
Visit Liquor and Gaming NSW to find out more about tax rates for clubs.
Tax rates for hotels
The rate for profits of more than $50,000 are set out below.
| Quarterly profit from gaming machines | Tax rate |
|---|---|
| Over $50,000 up to $250,000 | 33% |
| Over $250,000 up to $1.25 million | 36% |
| Over $1.25 million | 50% |
Visit Liquor and Gaming NSW to find out more about tax rates for hotels.
Tax adjustments
Your quarterly tax payments will be compared with the annual amount payable and you may be eligible for an adjustment based on your annual profit from gaming machines.
Tax adjustments for clubs
After 31 August each year, you can apply to Liquor and Gaming NSW for an annual adjustment.
| Annual profit from gaming machines | Annual tax rate |
|---|---|
| Less than $1 million | You pay no tax |
| Over $1 million and up to $1.8 million | 29.9% on the amount over $1 million |
| Over $1.8 million up to $5 million | 19.9% |
| Over $5 million up to $10 million | 24.4% |
| Over $10 million up to $20 million | 26.4% |
| Over $20 million | 28.4% |
Tax adjustments for hotels
After the end of a financial year, you can apply to Liquor and Gaming NSW for an annual adjustment.
| Annual profit from gaming machines | Annual tax rate |
|---|---|
| Up to $200,000 | 0% (nil) |
| Over $200,000 up to $1 million | 33% |
| over $1 million up to $5 million | 36% |
| Over $5 million | 50% |
The New South Wales Treasury has predicted that slot machine revenue will hit a new high within the next decade to hit $9 billion per year. And, with that, comes a big boost to the NSW Treasury in the form of gaming machine taxes. However, not everyone is happy with these numbers.
New Gambling Numbers from the NSW
The Sydney Morning Herald found some interesting information in new NSW Treasury documents this week. Poker machine revenue for NSW is due to hit $9 billion annually by the year 2029. This will be an increase of $2.5 billion. Meaning people will spend $85 billion on slot machines in the next 10 years. It also means the NSW Treasury will take $2.5 billion of that in gaming machine taxes.
These extraordinary numbers have caused concern among the general public, in government circles, and with organizations like the Alliance for Gambling Reform.
AGR spokesperson Kate Da Costa, told the Sydney Morning Herald, “NSW is not normal. Losses through poker machines in clubs and hotels are now running at $17.7 million every day. Star Casino adds at least another $920,000 a day to that figure. These are losses, not turnover figures – a huge sum of money which is a proxy for untold misery and harm.”
It should be noted that the most recent Treasury numbers are in line with those released just one year ago. Those numbers estimated that poker machine profits would reach $7 billion by 2021. This would be a 12% increase over four years.
Regulation Not Enough?
There are laws in place to limit the number of poker machines – all slot machines, also known as pokies – throughout New South Wales. But even so, gambling losses to machines have increased significantly of late, more so in pubs rather than clubs.
Estimates show that pub pokies losses are expected to increase by 50% from the 2018-2019 numbers to those expected in 2028-29, while club losses are only expected to increase by 30%.
According to the laws on the books of the New South Wales government, the Gaming Machines Regulation 2010 was updated on March 2019. The original 2010 law limited machines in clubs and hotels to 99,000 and 1,500 in casinos. This limits the total number of machines in NSW to 10,500. But, the latest Gaming Machines Amendment Act 2018 put a cap on pokies in areas identified as ones with concerning levels of problem gambling.
The result was that approximately 20% of NSW was prohibited from obtaining new pokies. And fines were increased to keep establishments from skirting the law and paying the fines as a cost of business.
An overview of the latest predictions for NSW poker machine revenue, however, shows that the law may have underestimated the popularity of the machines and their prevalence.
Concerns Abound
Independent MP Justin Field was the first to express his concern after analyzing the Treasury numbers. “The explosion in poker machine profits forecasted for the clubs and pubs, in spite of government reform, is another example of politicians turning a blind eye to the impacts of gambling on communities,” he said. “The Labor Opposition remains deathly silent on this important social issue.”
Field pointed out that the increases match a rising level of political contributions from the Australian Hotels Association. It also comes from other lobbying groups like Clubs NSW. For example, the AHA gave more than $416K in 2018 political donations. This is compared to little more than $89K in 2017. Donations have gone to the NSW and federal Labor and Coalition parties.
Referring also to the recent Crown gambling investigation, Field noted that it shows “the capture of major parties by the gambling industry and their complete and historical failure to regulate gambling in the public interest.”
NSW Increases at Odds with Responsible Gambling Efforts
The NSW Office of Responsible Gambling has been in the news quite often of late. It processes funds for various initiatives and programs dedicated to reducing gambling harm. It also provides more resources for anyone with gambling concerns.
The Responsible Gambling Fund takes a portion of casino games licensing fees, through the Gaming Machine Act, and via the Treasury. It has led to significant funding for the overall responsible gambling strategic plan for 2018-2021.
Nsw Poker Machine Revenue Calculator
Millions are being invested in research, education and awareness, support services, partnerships, and technology and innovation.
Nsw Poker Machine Revenue Recognition
Most recently, the Office of Responsible Gambling commissioned and received a report from Flinders University. This will help determine future objectives and fill in the gaps where programs aren’t working as well as predicted. Further research will identify more areas where funding would be helpful.