Gambling in the ACT will hit $1 billion for the first time in 1994-95, according to calculations from Budget figures and information from the ACT Revenue Office.
That is $4800 per adult.
The big recipients of the Canberra gambling dollar are: poker machines $700 million, the casino $160 million, the TAB $107 million, lotteries $35, bookies $2.8 million.
The Budget figures reveal the ACT Government will get $48 million from gambling.
Direct comparisons with other states are difficult, but per capita gambling in the ACT is higher than the national average by at least 30 per cent and the Government take is higher than the Australian average by about similar amount.
It is from ACT tax receipts that the extent of ACT gambling can be worked out.
A lot of poker machine turnover is just recycled as people push winnings back into the machines. It is taxed at 22.5 per cent of profit, though to help small clubs the first $8000 profit is taxed at 1 per cent. The ACT Government expects to get $18.6 million in poker machine tax next financial year.
Most poker machines in the ACT are set to give an 87 per cent return. There is a legal minimum of 85 per cent, but some are set as high as 90 per cent.
The ACT will get $12.4 million from the casino. The tax is set at 20 per cent of profit with a confidential super-tax on top of that which runs out next year. Casinos generally aim for a 5 per cent profit on turnover, but the ACT’s casino may be making more. About half the casino’s patrons come from interstate and about 65 per cent of its revenue comes from interstate. A conservative estimate based on those figures would put the ACT-sourced turnover at $160 million.
TAB turnover is more precise. The ACT Government takes 5.75 per cent of turnover netting $5.4 million, which gives a turnover figure of $107 million.
Bookies are taxed at 1.25 per cent and will be able to take phone bets later this year. They turn over about $3 million.
Lotteries will yield the ACT $11.4 million. Under tax-sharing arrangements with Victoria and NSW, the tax rate varies from around 24 per cent on instant tickets to around 32 per cent for the lotto style tickets. The bulk of it is taxed at the high rate with a conservative turnover of $35 million.
The Budget projections through to 1997-98 show a very slight fall in gambling revenue for the ACT Government, but this will not be due to any decrease in Canberra gambling, but because the casino super tax ends. A further threat to revenue will come from the Sydney casino. The temporary one opens early next year. Also the VITAB fiasco might have an impact on TAB revenue.