Australia’s Treasurer Jim Chalmers has expressed concerns over betting companies using tax breaks to fund the development of new poker machines and gaming apps, labeling the practice as “problematic.”
This comes as the Australian government seeks reforms to betting advertising aimed at reducing problem gambling.
According to The Sydney Morning Herald, Chalmers faced pressure from MP Mike Freelander to reassess the R&D tax credits system, especially regarding taxpayer money being used to subsidize poker machine innovations. He noted that this issue will be closely examined.
Recently, data revealed that Australia’s gambling and poker machine companies claimed over AU$90 million ($59.1 million) in R&D tax credits in 2021-22.
Major companies like Tabcorp, Aristocrat, and Ainsworth Game Technology have substantial R&D budgets, with Aristocrat stating that their tax credits are relatively minor compared to their overall R&D expenses.
Jinesh Patel, CEO of the Gaming Technologies Association, expressed surprise at Chalmers’ comments, defending the legitimacy of the R&D tax credits program and its intent to encourage domestic investment.
He emphasized that the gaming industry is actively working on harm-minimization initiatives.
Some experts suggest reconsidering the eligibility of gambling technology for these tax offsets, arguing that profitable businesses should not benefit from taxpayer-funded incentives.
