Australia to get tough on offshore operators…maybe

In its just released response to a recently completed review into offshore wagering, the Australia government has expressed intent to toughen it’s current stance significantly.

Big changes coming?

Who can say. Re-reading that opening phrase I can’t help but be reminded of an episode of Yes Minister.

No doubt consultants were paid a small fortune in taxpayer dollars to prepare the 187 page Review of the Impact of Illegal Offshore Wagering (the Review) and then more consultants probably made a decent buck preparing the 18 page government response (links to both documents can be found here). Recommendations have been made and agreed, in full or in principle; frameworks suggested and timelines postulated. The bureaucratic process is certainly in fully swing. Whether real change happens is anyone’s guess.

Offshore online gambling operators still treating Australia as a grey market probably don’t need to plan a hasty exit just yet!

Government response and recommendations

At the heart of the problem, is the fact that Australia’s Interactive  Gambling Act 2001 is largely ignored by offshore online gambling operators, with the result that Aussie punters are betting significant amounts with these operators each year; bets that are both unregulated and untaxed. How significant these amounts are is a little fuzzy, but guesstimated to be somewhere between ‘lower estimates’ of 5% (AUD$64 million) and ‘upper estimates’ of 26% (AUD$400 million) of the total market.

Whatever the amount, the aim is to reduce it further, taking a 3 stage approach (which reflects acceptance in full or in-principle 18 of the Review’s 19 recommendations).

1. The establishment of a national consumer protection framework within 12 months.
   Consumer protection is always championed as the key priority with these kinds of government plans, and who doesn’t love a good framework?
2. Amend the law to make it clear that it is illegal for unlicensed overseas gambling companies to offer gambling products to Australians and empower the The Australian Communications and Media Authority (ACMA) to have stronger enforcement mechanisms.
   By ‘enforcement mechanisms’ it is meant that the ACMA will be given mandate to notify relevant international regulators if an operator in their jurisdiction is in breach of Australian law. This one’s interesting and will, if it comes to pass, force some of the bigger operators to reconsider their Australian operations.  PokerStars for example may rethink accepting Australian players if it jeopardises any of its recently acquired US licenses.
3. Introduce other disruption measures to curb illegal offshore gambling activity.
   Name and shame lists; disruption of travel to Australia by named individuals; consultation with ISP’s on website blocking. All the measures other governments have attempted in the face of the jurisdictional limitations of legal action.

Now we wait for the next episode of Yes Minister.