Earlier this week, Tabcorp revealed that it was getting a refund of approximately $83 million after establishing a settlement with the Australian Tax Office (ATO).
The controversy between the two parties started after the country’s Tax Office demanded Tabcorp pay its operating licence taxes and its due fees on other provisions. Although the gambling and racing giant paid the full amount of what it was told it owed in tax liabilities and interest, it filed legal action against the regulator, claiming that the tax authority was not calculating the tax accurately.
The ATO agreed to collaborate with the company and, eventually, the refund amounted to approximately 20% of the overall amount that had been paid by the company. The reached settlement comes at perfect timing for the Australian gambling operator which was recently hit with an AU$1-million fine by the Victorian Gambling and Casino Control Commission (VGCCC) for alleged breaches of the country’s regulatory rules a couple of years ago.
As mentioned above, as part of the two parties’ settlement, the ATO will refund approximately AU$83 million to the gambling and racing giant, with the sum representing 20% of the overall disputed amount in tax liabilities and interest.
Tabcorp Set to Announce Annual Financial Health Report in June 2024
According to the announcement of the Australian Securities Exchange (ASX), the significant victory is expected to help Tabcorp announce a benefit of around AU$45 million in June 2024. The same report is also expected to display a new arrangement on some licence fees, which, in the gambling and racing operator’s opinion, must be treated as “capital”. Still, the company noted that this should not have any effects on its overall results.
Tabcorp is expected to file its annual financial health report in June 2024. At the time, it is expected to reflect the aforementioned reimbursement. The report is also set to display a payment of approximately AU$37 million, which the racing and gambling operator will have to make to The Lottery Corporation and which originates from the demerger that Tabcorp experienced in 2022.
Currently, the Australian gambling sector is undergoing an overhaul. Some of the changes could really affect the way gambling companies in the country interact with their customers. According to market experts, even if the recent settlement reached between the Australian Tax Office and Tabcorp will not affect the company’s financial results, some of the ongoing changes would certainly do in case they eventually come to life.
According to the local horse racing news platform Racine, Tabcorp’s CEO and Managing Director Adam Rytenskild does not support the proposed full ban on the various inducements used by gambling operators to encourage customers to spend more time and money on their platforms. Mr Rytenskild has shared he backs the changes in the current gambling advertising rules but, reportedly, it is his belief that suspending any gambling ads that could attract wagers just goes too far.
Olivia Cole has worked as a journalist for several years now. Over the last couple of years she has been engaged in writing about a number of industries and has developed an interest for the gambling market in the UK.