Bookies set for Queensland POCT change disappointment 

Wagering companies expecting a cut in Queensland’s Point Of Consumption Tax (POCT) are set to be disappointed when Racing Minister Tim Mander releases the findings of the McGrath review into the state’s racing industry on Saturday.

While there was confidence that the Crisafulli state government would agree to reduce POCT from 20 per cent to 15 per cent when the review overseen by former Australian Turf Club chairman Matt McGrath was initially set to be released in October, it now appears any change is off the agenda.

The wagering industry, which has spent substantial time lobbying for the change over the last nine months, including submissions from Responsible Wagering Australia (RWA), is said to be frustrated by the likelihood that the Minister has had a change of heart.

Uncertainty over the details of the 15 per cent POCT was believed to have delayed the release of the report in October.

The Straight understands a proposal had been put forward which would see Racing Queensland reduce its share of POCT, which is currently 80 per cent, but increase race fields fees to cover the difference.

It is also believed major bookmakers were willing to tip in extra to help bridge the difference, if it meant getting the change approved.

Some bookmakers, such as Sportsbet, had already stepped up their contributions to Queensland racing, taking sponsorship deals with country clubs, anticipating a change.

RWA argued in its submission that the 20 per cent POCT introduced in December 2022 has “overshot the mark”.

“Since the 20 per cent POCT was introduced, Queensland’s racing product has become uncompetitive,” it said.

“Punters are simply not betting as much or shifting to other products, or to offshore markets when they see less value and promotions worsen due to the tax burden. Had genuine consultation occurred about this issue, industry could have helped inform government of some of these adverse impacts and unintended consequences.”

If there is no cut put forward, as expected, bookmakers are unlikely to prioritise the Queensland product.

When the 20 per cent POCT was first announced in 2022 with no consultation for any wagering company outside of Tabcorp, both Sportsbet and Ladbrokes took Queensland racing product off their website and phone app front pages and ceased to offer odds boosts or bet returns.

It is not known if bookmakers are considering similar tactics should Mander opt not to reduce the POCT.  

There is also a chance that the POCT decision could be “kicked down the road”, with discussions to remain open with bookmakers.

Mander will front an industry meeting at 9am on Saturday at Doomben to unveil the outcomes of the McGrath review, which was commissioned earlier this year.

While there are unlikely to be changes to the wagering tax structure, the recommendations are believed to be wide-ranging.

The Straight understands that it will be recommended that both the Deagon training centre and the Albion Park harness venue be sold off to help future-proof funding for all three codes.

It comes as the government is searching for a new chairman for Racing Queensland after Steve Wilson’s departure in October, while Lachlan Murray remains as an acting chief executive 10 months after first coming into the role.