The federal government recently decided to exclude gambling companies from the R&D tax incentive program, which has alarmed the entire industry.
Critics argue that this move could harm innovation, investment, and job opportunities in Australia, while shifting opportunities overseas.
The R&D tax incentive is designed to encourage companies to engage in research and development activities to enhance competitiveness and productivity.
Kai Cantwell, CEO of Responsible Wagering Australia (RWA), criticized the government for lacking consultation with industry stakeholders and warned that the decision undermines the industry-neutral principle of the program.
Cantwell stated: "The government's statement sets a dangerous precedent for future tax policies to be potentially misused—today it's gambling companies, but any industry could be the next target if used as a bargaining chip or tool in future political deals. This slippery slope opens the door for tax policies to become tools of moral judgment rather than drivers of economic growth."
It is noteworthy that the online gambling industry directly employs 80,000 people and pays over $2 billion in taxes and fees annually.
RWA urges the government to reconsider the policy and work with industry stakeholders to resolve the issue.
Cantwell added: "Australia's R&D framework should encourage investment in Australia, but this decision might push R&D activities to countries that offer more supportive incentives."
In October 2024, RWA supports the Gambling Awareness Week in New South Wales, highlighting the risks posed by illegal offshore gambling operators, who currently hold 15% of the market share. RWA continues to advocate for balanced regulation to protect consumers while maintaining a strong legal market.
