Australia Reviews Outdated Interactive Gambling Act

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Sunday, September 20th, 2015 | Written by Lucy Brown

When you compare the gambling industry of 2015 to the gambling industry of 2001, the differences are simply staggering. As technology has advanced and the use of mobile devices has become more and more commonplace, big changes have been made to the way people gamble all over the world. Many countries now find that even relatively new gambling laws are sorely outdated, and one of these nations, Australia, has recently announced that it intends to reexamine its current regulations regarding online gambling in the country. The timing is especially pressing considering an estimated $1 billion is spent each year on illegal gambling sites, and as Australian wagering firm Tabcorp explains:

“The rise of unlicensed offshore betting on Australian racing and sport needs to be addressed. Unlicensed offshore operators are not regulated to Australian standards and that poses risks to consumers and the integrity of sport and racing. It also means revenue that would otherwise be returned to the Australian racing industry and governments is instead going to unlicensed offshore operators.”

The Big Announcement

When Tony Abbott was running for Prime Minister of Australia, Internet betting was a big part of his platform. Abbott pledged to put stiffer regulations in place to control Internet betting throughout his campaign, and it appears he, and now his replacement Malcolm Turnbull, intend to make good on that promise. Earlier this month, the Abbott administration announced that Scott Morrison, the Social Services Minister of Australia, will be leading a complete review of the country’s Interactive Gambling Act, which was passed in 2001.

A Promise to Examine in Good Faith

As soon as the review was announced and the Australian media broke the story, people began speculating about what the review would mean. Scott Morrison moved quickly to reassure people that there were no preconceived agendas in place and that the purpose of the review is to identify areas of concern that need to be remedied. In a public statement, the minister said that he intends to conduct the review without any biases, and that he “will engage in good faith,” an announcement that has already received positive reactions from various politicians. One such supporter is South Australia senator Nick Xenophon, who commented:

“This review gives us an opportunity to take stock of the explosion of online gambling, including illegal overseas gambling, and the pernicious impact that online betting has had on sporting culture.”

What’s At Issue in Australia

There are a number of problems that the 2001 Interactive Gambling Act is ill equipped to deal with in Australia that the review could potentially identify. Some of these matters include:

– Advertising: Currently, gambling ads run on television in Australia, and there is speculation that the government may attempt to ban or regulate these ads. If this were to occur, however, it is likely that Australian sports leagues would fight the move, as those ads are big sources of revenue. Also at issue, however, is the protection of gamblers, who are enticed by easy credit from sports betting firms, many of them from the UK and Ireland. As Financial Counselling Australia (FCA) manager Lauren Levin explains:

“Sports betting in Australia is widely advertised, easily accessible, growing exponentially and is highly profitable. We encourage the government to introduce this legislation by proving some protection to people losing huge amounts of money, who can’t afford to lose it. It just makes sense to stop all this harm.”

– Offshore Betting: In order to offer online gambling in Australia, it’s necessary to obtain a license and comply with the Interactive Gambling Act. Still, there are many offshore betting sites that Australians use regularly. The review is likely to suggest making changes to the act to help protect consumers from the potential dangers of playing on unlicensed sites.

– In-Play Betting: The Interactive Gambling Act prohibits placing in-play bets online. For those that don’t know, an in-play bet is one that is made once a game has begun. As it stands, the 2001 law only allows in-play bets to be made over the phone. Websites have found a way around this by introducing a “Click to Call” feature. Basically, players can just tap a button and place a call from their computers or phone while making a wager at the same time. It’s likely that the review will recommend changing the wording of the law to prohibit this practice.

The review of the Interactive Gambling Act is expected to get underway soon, and be completed by 18 December 2015, therefore we will have to wait a few months longer before we see what Morrison and his team recommend.