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“Peru has been quite successful in channelling customers into the regulated framework,” Rossi comments. “The risk is that this channelisation can decrease in favour of the black market. We know the black market won’t have any consumption tax.
“There should be, in my opinion, a review of the whole ISC or consumption tax framework and find a kind of alignment or a better way to get an income in terms of taxes, but that should be balanced in order to avoid the disruption of businesses and a migration of customers to the illegal market.”
Atucha warns there is a tipping point where higher taxes can undermine channelisation, citing the UK and Germany as important case studies.
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Green MP Cate Faehrmann has criticised the arrangement, highlighting a conflict of interest where clubs reduce their tax liabilities while simultaneously cultivating community goodwill.
She called the proposed changes “tinkering around the edges”. She questioned whether ClubGRANTS genuinely supports community projects, or functions as an indirect subsidy that lessens scrutiny of gaming revenue.
“ClubGRANTS is what the clubs rely upon to push back against any reform. The fact is they’re not generous, they’re a rort.” A “rort” is an antipodean term denoting a trick, scam or fraudulent practice.
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He said the regulation was well established and not with the intention of raising revenue.
“Tax collection is part of the economic game and all sectors contribute,” Durigan said. “The same happens with betting.”
He argued the sector should be treated with the same rigour currently applied to cigarettes.
