Vic gambling revenue heads toward $2b

Kaitlyn Offer
Victorian Treasurer Tim Pallas says revenue from gambling will come to about $1.87 bn in 2017/18

Victorian gambling taxes are close to hitting the $2 billion mark for the first time, a parliamentary committee has been told.

Reason Party MP Fiona Patten questioned Treasurer Tim Pallas on the figures, which will come to about $1.87 billion in the 2017/18 financial year, during a budget estimates hearing on Tuesday.

"Two billion dollars on gambling seems to be a pretty large number for our state," Ms Patten said.

Mr Pallas said gambling taxes are forecast to increase about 1.6 per cent a year.

"In practical terms that is actually substantively below the revenue growth the state is getting overall, which is coming in at four per cent," Mr Pallas said.

"Yes it is increasing, but it's increasing at a lesser level than the general background revenue it terms of the state."

The budget also includes the new, eight per cent point-of-consumption tax imposed on all betting companies, which is forecast to bring in $30 million a year and was announced on Monday, the inquiry was told.

The new tax does not have its own line item but will contribute to the state's overall gambling impost revenue.