Victoria will reap about $30 million a year under a new tax on all betting agencies, including online companies, but the point-of-consumption tax will be half that of other states.
Treasurer Tim Pallas on Monday announced the eight per cent impost, but danced around whether it was technically a new tax.
"You can define it however you wish ... I would call it 'a measure aimed at stopping a leakage in our tax base'," Mr Pallas told reporters.
"This is money that Victorians are due and this is money I am going to fight for to ensure they will get."
After years of avoiding paying a state tax, online companies will be hit, while agencies already paying a six per cent Victorian levy will also face the higher rate.
It will start from January, dependent on legislation passing parliament.
The tax will apply on all bets places in Victoria and companies will be responsible for working out the location of people placing the wagers.
The rate of eight per cent is nearly half of South Australia's 15 per cent tax, with other jurisdictions like WA also considering a similar tax.
"We expect other states will look at what Victoria is doing here; we think there is a law of diminishing returns around the revenue that the state would get by setting the tax higher," Mr Pallas said of the lower tax rate.
"So our view is, we maximise the return, we minimise the harm by setting these rates."