Australia’s corporate bookmakers will be the hardest hit should South Australia’s point of consumption tax be adopted by other states in the country, says CLSA analyst Anthony Longo in a note on Friday.
The analyst said that calls for a national point of consumption tax has been gathering in Victoria and New South Wales, who are considering imposing similar taxes.
Least affected would be Tabcorp / Tatts, said Longo.
“While a higher tax is negative for wagering operators, it could result in a period of strong industry-wide revenue growth as was the case in FY15 when take-out rates were lifted in response to higher race fields fees. In addition to higher win rates, bookies may also be forced to cut marketing budgets, improving the competitive position of Tabcorp/ Tatts,,” he added.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
Analysts have turned more upbeat about the prospects for Malaysia’s gambling operators, despite a recent upswing in new Covid-19 cases, saying the sector is good value as stocks are still down between 15 to 26 percent on the prior year.
Frederic Jean-Marie Winckler, executive vice president and chief creative and brand officer of Melco Resorts & Entertainment, talks with Michael Penn, executive editor of AGB Nippon, about the future of the luxury market in Macau and beyond. Among the topics addressed are the growing importance of digitization and the direction of luxury trends within the premium mass segment.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing
what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.