Understanding keno tax
Learn how keno tax works and how entities register, lodge and pay.
Key information
Licensed keno entities must pay keno tax on revenue from customers who are in Victoria when they play keno.
Players do not pay keno tax.
You only need to pay keno tax if you hold a licence to operate keno with the Victorian Gambling and Casino Control Commission or a regulatory body in another Australian state or territory.
Keno tax applies to both in-person retail games and online games. It is paid monthly. The current tax rate is 24.24%.
Revenue from the tax supports health and community services through the Hospitals and Charities Fund.
Keno entities are licensed under the Gambling Taxation Act 2023 and include:
- a keno licensee in Victoria
- a person authorised or permitted to conduct a keno game, in Victoria or elsewhere, under the law of another state or territory.
Determining a customer’s location
A customer’s location is assessed at the time of playing keno.
In-person keno
Any keno games played at a Victorian venue are captured based on the venue’s location.
Online keno
Keno entities must take reasonable steps to confirm the customer’s physical location (geo-location) at the time of play. If this is not possible, entities may rely on:
- the customer’s residential address (for individuals)
- principal place of business (for corporate customers).
Entities cannot rely on address information if they know or suspect it is incorrect.
We conduct compliance checks to ensure address information is accurate. Penalties and interest may apply if tax is not paid correctly.
Rates and calculations
Keno tax is 24.24% of net keno revenue, including GST, from customers located in Victoria. There is no tax-free threshold.
Net keno revenue for a month is calculated as the total amount received for games played, including the face value of any free games minus total prizes.
Total prizes is the sum of:
- All prizes paid or payable in the month directly to customers located in Victoria at the time of play, including net prizes for free games (other than prizes paid into or out of a prize pool).
- All amounts received for games played by customers located in Victoria that are paid into a prize pool and required to be paid or payable as prizes to customers of keno games (whether located in Victoria or elsewhere).
A free keno game is one where the customer pays nothing or less than the face value of the game. Net prizes for a free game means the prizes payable minus the face value of the game.
Offsetting negative net keno revenue
If net keno revenue for a month is negative, it must be carried forward and applied to the next months’ positive net keno revenue. The offset continues in sequence until the negative amount is fully absorbed. It cannot be deferred or used to offset prior months. An example of this is provided in the instructions to lodge your monthly return.
Register, lodge and pay
Keno entities must register for keno tax before submitting their first monthly return.
After registering, you must lodge a return every month and pay any tax due. Returns are due within 30 days after the end of each month, even if no tax is payable.
Interest and penalties apply for late payment.
Lodge your keno tax monthly return
If you are no longer liable for keno tax and do not expect to incur any liability in the future, you must notify us and submit a final return within 14 days. Follow the steps to cancel your keno tax registration.