Paddy Power Betfair - New South Wales signals 10% point-of-consumption tax, adding 1.6% to 2019 EBITDA if confirmed

Davy Research
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Another day, another tax announcement from an Australian state. This time it is better news for the industry, with the signal from the Treasurer of New South Wales that it intends to introduce a 10% point-of-consumption tax in the state. The state budget is scheduled for next Tuesday (June 19th). If confirmed, that rate would be five percentage points below what we currently have in our forecasts and would result in a 2019 forecast uplift of 1.6%. This brings to an end a series of tax announcements from states that represent material levels of revenue for Sportsbet.