Slot Machine Taxes Are Hurting Them 

Tabcorp Holdings, Ltd. is Australia’s biggest gambling company. But they are not pleased with their first half profit as they say that they are being taxed too much money on their slot machines. They say that their profit has decreased two percent on higher taxes for slot machines on their Queensland casinos. 

The company said that their slot machines saw their income drop to $227 million or 42.5 cents a share as compared to the previous quarter which was 49.6 cents a share. This is a significant decrease in slot machine revenues for the company. 

They said that their off track betting monopolies in their two most populous states boosted demand as they added more fixed odds gambling options. They also expanded their online bookmaker which they say was very positive for them. They said that they saw their earnings rise even though they said that they were paying more to the horse racing industry in fees.  

They feel that things are going to turn around though. They said that they have to continue to invest in their slot machines and their casinos and by doing so they will see them start to bring in more money. They feel that by giving more money toward the slot machines that they will be able to “refresh the property.” They said that their saw their slot machine profits rise this past quarter and they believe that by putting more money into them that they will grow even more. It would appear that the old adage that you have to spend money to make money is true.