Federal Group to lose monopoly but tax rate on pokies slashed under Liberal Govt proposed policy

The tax rate for poker machines at Tasmania’s casino will almost halve, sparking outrage from critics who say the State Government’s draft gaming legislation does not go far enough. Key points: The changes will result in revenue increases for the Tasmanian Government and pubs and clubs The cap on poker machines in the state will reduce by 150 under the proposed changes Public consultation on the legislation will run for five weeks The Federal Group will be almost $25 million worse off under the long-awaited move to break up its grip on the state's gambling licences. An increase in the Keno tax rate at pubs and clubs will cost the Federal Group a further $5.28 million, but an almost 12 percentage point decrease in the casino poker machine tax rate somewhat cushions the blow, with the Tasmanian government projecting it will boost its annual revenue by an extra $11.2 million. Overall, the changes mean Federal Group's annual revenue will drop from $108.75 million in the 2018-19 financial year to $84.07 million in future financial years, according to projections. Tax rate 'outrageous', says independent In a statement, Federal Group executive general manager Daniel Hanna said the company will comprehensively review the draft legislation.