The Queensland government will lift taxes on bets to 20 per cent and funnel most of that income to the state's racing regulator in the upcoming budget.
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 regulator Racing Queensland will also be lifted from 35 to 80 per cent.
Mr Dick says the new levy will ensure multinational betting firms financially support 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, compared to $32.5 million in 2020/21.
Mr Dick last week foreshadowed a deficit of less than $1.7 billion in 2022-23 due to increased stamp duty, taxes and fossil fuel royalty revenue.
That's down from the $2.4 billion deficit forecast in the treasurer's budget update in December.
Mr Dick attributed Queensland's bounce-back to less lockdowns than their southern neighbours, saying it would be just one tenth of Victoria's $17 billion deficit.
The changes to Racing Queensland's funding model will also ease tensions with wagering giant and tote operator TabCorp.
It took Tabcorp to the Supreme Court in 2019 over disagreements about the 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.
"Tab is Australian born and bred, Tab's been your local for decades, and this levels the playing field in Queensland for Tab," he told reporters.
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," Mr Dick said.
"We know they have deep pockets, and now is the opportunity to commit and to fund racing across our state."
The treasurer last week promised budget funding to construct a $72 million regional aeromedical hub at Brisbane Airport along with $334 million in funding for the Royal Flying Doctor Service over the next 10 years.
