Australia’s NT doubles wagering tax cap to A$2M

Australia’s Northern Territory has announced plans to double the wagering tax cap for betting operators, increasing it from 1 million to 2 million revenue units.

With each unit set to rise to A$1.45 in July, the updated cap, effective from 1 July, will apply to licensed bookmakers and betting exchanges, aiming to generate an additional A$13.1 million in revenue.

The change forms part of the 2025-26 Budget and will be enacted through amendments to the Racing and Wagering Act 2024.

In addition, the government is revising the Gaming Control Act 1993 to introduce a 50% tax on profits from online lottery ticket reselling and matching services.

State treasurer Bill Yan, state treasurer, mentioned:

This will standardise the taxation of internet gaming in the Territory and ensure a level playing field for online operators who offer ticket re-selling or matched lottery products.

Taxation and royalty revenues are expected to increase by A$142m in 2025–26, driven by improved royalties and reforms like the new gaming tax arrangements. That’s more funding to invest in safer communities, better services and real economic growth.

The move has drawn criticism from Responsible Wagering Australia (RWA), the national industry body, which condemned the tax increase as economically irresponsible and warned it could damage the Northern Territory’s reputation as a trusted licensing hub.

RWA criticized the cap increase, stating it was implemented without any industry consultation and came prematurely—before the completion of the Northern Territory Government’s own Racing Industry Review, which was intended to guide the future sustainability of the wagering and racing industries.

Kai Cantwell, CEO of the trade body, said:

RWA have participated meaningfully in the review and eagerly anticipated a new strategic vision for racing in the Territory. This decision, made before the Review has had a chance to lay that strategic vision, has blindsided and materially undermines any outcome of the Review.

This tax hike preempts the outcome of the Review, a process that was meant to guide long-term, evidence-based and sensible reform. It sends a message that consultation, process and industry sustainability have taken a back seat to short-term revenue grabs.

A financially sustainable and well-regulated racing and wagering industry is critical to ensuring its long-term viability and the significant economic and employment benefits it delivers to Territorians. Rather than imposing blunt tax increases, the government should be working with industry to identify growth opportunities that will ensure the Territory’s continued leadership as a licensing jurisdiction.

We are calling on the Treasurer and Chief Minister to reconsider this decision and to engage in genuine consultation with the industry before moving forward.