Australia Bans In-Play Sports Betting

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Tuesday, May 17th, 2016 | Written by Shane Larson

Online gambling and poker are illegal in Australia and may not be legalized by any of the country’s six states. However, the acceptance of online betting on sporting events, greyhound racing and horse racing is allowable under Australian law, provided that states do not choose to ban it. What’s been up for debate until recently is whether or not it was legal for operators to accept in-play bets, or wagers that are made during the course of a sporting event or race. Now, that position has been clarified by the Australian government, and gambling operators are not happy.

Changes Ahead in Australia

Having considered recommendations made by Barry O’Farrell following a comprehensive review of Australia’s gambling law called the Interactive Gambling Act (2001), the Australian government announced that they were going to make a number of changes to their regulation and enforcement of online sports and race wagering, including:

– Elimination of In-Play Betting. Australia reasserted that in-play betting is illegal throughout the country. No one may place a bet on an event that is already underway.

– Self-Exclusion Registers. People who have gambling addictions will be able to put their names in an exclusion list that would prohibit them from placing bets.

– Transparent Reporting. The Australian government plans to provide gamblers with reports that detail their losses to ensure that consumers have a realistic picture of how much money they are spending by wagering on sports.

– Banning Lines of Credit. Australia plans to crack down on operators that allow people to place bets on credit and then make payments on the amount owed plus interest.

Critics Speak Out

On the heels of Australia’s major announcement regarding in-play betting came a statement from Exercise and Sports Science Australia (ESSA), which represents the interests of legal sports bookies. The ESSA was quick to state that in-play betting in many ways helps to ensure the integrity of the game, as it greatly reduces the likelihood of players being bribed to throw a game because of heavy bets being placed on their team. In addition, the ESSA stated that Australia is losing millions of dollars in potential tax revenues by not allowing in-play betting because Australians are simply using offshore sites to work around the law.

Online Betting Ban Being Ignored

In spite of the in-game betting ban, operators have continued to flaunt the law and are still offering the service to punters during sporting events. They also seem looks unlikely to cease their activities with a number of major sporting activities taking place in the near future, including the Spring Racing Carnival, as well as the country’s Rugby and Football League finals.

Considering their unwillingness to wait until next January to see whether the federal elections may bring a new approach on the issue, some operators have even been exploiting a loophole in the in-play betting ban by offering gamblers a click-to-call option. This has raised major concerns with Australian companies such as Sportbet and Tabcor, who now feel themselves disadvantage in relation to international operators prepared to continue exploiting the technology. As the Australian Wagering Council CEO Ian Fletcher commented recently:

“If the Interactive Gambling Act 2001 is to be amended … the minister should commit to truly level the playing field and ban the use of any technology that allows a person to place a bet in-play. If the government is going to ban one type of interactive technology, it must ban them all — otherwise the effect of the proposed legislative action will be to protect some wagering companies at the expense of others.”

The Impact on the U.S.

While Australia may be an ocean apart from the United States, the new rules out of the Land Down Under could have an impact on online poker in New Jersey. New Jersey currently has a law in place that does not require regulators to crack down on operators who are providing services in countries where gaming rules are “grey” or not clearly defined. Currently, PokerStars has been taking advantage of this clause by offering online gambling in Australia. With the clarification of the rules, New Jersey may now be compelled to force PokerStars to stop allowing Australians to access their website and revoke their licensing if they fail to comply.