Treasurer Cameron Dick says the point of consumption tax on wagering companies will rise from 15 per cent to 20 per cent and be broadened to include free and bonus bets in this month’s budget.

The proportion of government wagering tax takings going to Racing Queensland, the regulator, will also be lifted from 35 to 80 percent.

Dick said the new levy would ensure multinational betting firms financially supported Queensland’s racing industry.

“This is about levelling the playing field when it comes to betting operators in Queensland and ensuring companies that are making profits,” he told reporters on Monday.

“Companies that are profiting out of our vital and growing racing industry pay their fair share, and invest into the future of racing. ”

Treasury forecasts Racing Queensland will receive about $80 million in annual funding, which will be used for infrastructure, clubs, breeding schemes and prize money.

Racing Queensland received about $32.5 million in 2020/21.

The industry employs about 6500 people and there are 125 race clubs in the state.

Changes to the racing regulator’s funding model will also ease tensions with wagering giant and tote operator TabCorp.

The company said it had settled litigation with Racing Queensland and was backing the reforms announced by the Government.

The settlement would mean Tabcorp will pay $150 million to Racing Queensland and the State Government. The settlement is conditional on the reforms being implemented by March 31 next year.

Tabcorp said the reforms would create an even playing field in which betting operators paid a 20 per cent point-of-consumption tax.

Racing Queensland took Tabcorp to the Supreme Court in 2019 over disagreements about firm passing on taxes via reduced fees and payments to the regulator.

Tabcorp chief executive Adam Rytenskild said increasing the tax on wagering would ensure foreign bookmakers paid their fair share of taxes and fees in the state.

He said on a relative basis, TAB currently pays double the fees to local racing industries compared to other wagering operators.

“Going forward we will all pay the same in Queensland,” he said.

“Tab is Australian born and bred. Tabs (have) been your local for decades, and this levels the playing field in Queensland for Tab,” he told reporters on Monday.

The treasurer denied that the levy was a “tax on punters”, however some firms may lower odds in response to the changes.

“This is not a tax on punters, it is a levy on big online betting companies,” he said.

“We know they have deep pockets, and now is the opportunity to commit and to fund racing across our state.”