NSW follows Queensland in increasing gambling taxes

  • Sectors : Gaming
  • Companies : Flutter Entertainment | DraftKings | Entain


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
DraftKings NEUTRAL 23/03/21 N/A N/A 1142c
Entain NEUTRAL 13/12/17 N/A N/A 1312p
Flutter Entertainment OUTPERFORM 08/05/19 Neutral 29/08/17 8412p


As part of the New South Wales (NSW) state budget, it was announced overnight that there will be an increase in the point of consumption tax (POCT) from 10% to 15%. It follows the recent similar announcement that Queensland expects to increase its gambling POCT rate (and calculation methodology). While such changes will impact near-term earnings, the continued creep in tax rates is an inevitable characteristic of the industry evolution. We also view a more expensive operating environment as a catalyst for additional market share concentration among the more scaled operators – just as we saw with the country-wide introduction of POCTs in 2019. When coupled with a still strong structural growth backdrop, the medium-term earnings opportunity in Australia remains attractive for the likes of Flutter and Entain.

Download full report with analyst certification and important disclosures

Jun 21 2022, 08:55 IST/BST