Wagering businesses could face higher tax bills amid a push to tax online bets in the jurisdiction in which they are placed, not where the company is headquartered.

Treasurer Scott Morrison said he had agreed to work with state and territory counterparts on a nationally consistent approach to taxing online gaming.

As a starting point, they will look closely at South Australia's new regime, which from July 1 will tax net wagering revenue at 15 per cent.

"This is a very important issue, both from a revenue perspective but, frankly, more importantly, from a social perspective," Mr Morrison said.

The Treasurer said a nationally consistent approach to harm minimisation was also needed.

"This is not about raising revenue for revenue's sake," he said, adding that a full understanding of the effect on sporting codes was required.

The SA government expects the new tax to raise $9.2 million a year.

It will apply to bets on horse, harness and greyhound racing, along with wagers on sports such as AFL, cricket and soccer.

The move angered the wagering industry and Sportsbet told punters the tax will make "wagering in SA more expensive than anywhere in the world".

Existing arrangements mean much tax revenue associated with online gambling flows across borders to the Northern Territory, where taxes are low. It is perhaps not surprising, then, that the Territory balked at the agreement.

Online gambling is the fastest growing gambling segment, accounting for more than $1.4 billion each year. SA is the first Australian jurisdiction to adopt a point-of-consumption tax.

A "nationally consistent approach" might force wagering profit back into higher taxing jurisdictions, which would mean bigger bills for companies and more money for governments. No dollar figures for these shifts were immediately available.

Monash University lecturer Charles Livingstone said the NT is home to most of Australia's internet bookies because of its "loose" regulation.

Senator Nick Xenophon, who entered politics on an anti-pokies platform, said the SA government's approach was "clever" and could a model for taxing all online goods.

This artilce is a reprint from the Financial Times. For the complete story, click here.