BETTING TAX

Hokitika Guardian, 5 January 1931, Page 3

BETTING TAX

EFFECT IN NEW SOUTH WALES

SMALLER ATTENDANCES

SYDNEY,,-December 24. Although the new betting tax of 10 per cent.’ of winnings operated lor the first time on Saturday, it seems clear that it is’ going to have a disastrous effect oh racing" in New South Wales. The tax is one of the most unpopular vet imposed on a long-suffering public, which has taken so many taxes in good part Of course there are those extremists who say that it would not matter if racing were taxed out of existence. hut in a sport-loving community, such as is to be found in almost any part of Australia, these are in a minority. The people pay ,very dearly for their spoH as it is. and resent any further imposition Already it is clear that the decision of the Government will give an impetus to. illegal betting —betting that will evade the tax. At last Saturday’s meeting at Raridwick, There was definite evidence that moves had already been perfected for evading ‘the tax and these are going to: he difficult to detect.

: The attendance at the opening of the /summer, meeting showed a fall of about 120,(XX) people. Some of this decline was no doubt due to the current depression but .the most remarkable feature of the meeting was the manner in 'whieli the patrons refrained from betting. It is reliably estimated , that the volume’of betting declined' I 'by -at ’least. pO. per .cent., while others say that the decline, was as much .as 70-"p e ri: “bent. *•" •■•This means that the .Government will 'not/ reap anything like the amount'/of - £1,000,000 - which is expected. Tlie estimate of. the return was, in the/ first place, for too high, .according, to tlie experts. One operator, on Saturday, said that his turnover showed ’ a reduction of £2500. ’Some of the smaller.'bookmakers were almost neglected.

It is stated that the amount which .the Government will collect as a result of the first day’s, racing.'under the new order will be £SOOO, whereas the Government estimated that the amouqt would be at least £IO,OOO, On the other hand, the attendance was so much below the average that the Government lost about £3OO, due to the falling off in the amount invested on the totalisator and the smaller return on account of the admission tax.

A way out of -the. payment of the betting taxes that was largely availed of last Saturday was through the telegraph office in the course. It is stated that there was an -unprecedented rush of business more than 1000 additional telegrams Being dispatched, presumably to unregistered bookmakers who were operating off the course. and who would not have to pay the tax on winning bets. The police have laid their plans with the object of arresting a still greater number of illegal bookmakers, but they are finding it difficult to carry them* out. The unregistered men realise the need lor caution, and there is proceeding a battle of wits that will be closely watched.

One thing is certain. The tax will drive many bookmakers and trainers to Victoria. Last Saturday a flood jof money from New South Wales found its way to Melbourne, where the bets could be made without any fear of |reduction for taxes in’ the case of a win. Melbourne racing has been given a. new lease .of life).,