In a recent interview with Inside Asian Gaming, leading Australian gaming attorney Jamie Nettleton cautioned that an all-out ban on online gambling advertisements, combined with existing tax and penalty frameworks, will prohibit growth in the market and drive more players to illegal offshore operators instead.
The concept of an all-out ban was part of the regulatory recommendations set forth by a parliamentary committee that concluded an inquiry into the state of the county’s online gaming industry and its related harms earlier this month.
Nettleton posited that at a certain point, one begins to question the benefit of jumping through hoops to obtain a legal license when the black market is so appealing to players.
“Well, the benefit of having a license is access to the market, and access to the market is not just access to the market by having customers but being able to market to those customers to allow them to keep on coming through the door. That’s part of the benefit,” he told IAG.
“On top of this, there are restrictions in respect to the products that can be supplied, ever increasing red tape – including in respect of the KYC process which needs to be completed before you can take a bet – and rising costs that are going to be incurred by operators having to pay up to 50 percent of profit in taxes,” Nettleton continued.
Notably, the country’s Interactive Gambling Act may make it illegal for offshore operators to serve Australian players, but the players themselves face no penalty for playing, which only adds to the difficulty of maintaining a well-rounded legal marketplace.
According to details reported by IAG, the committee recommended a four-phased approach to banning the ads.
Phase One would include a ban on all online iGaming ads and ads considered to be inducements; Phase Two would ban iGaming ads and odds commentary both during sporting events and for an hour before and after the events are played, as well as a ban on team sponsorships and stadium ads; Phase Three would ban all broadcast iGaming ads between 6 a.m. and 10 p.m.; and Phase Four would tie up any loose ends and complete any leftover bans.
Certain exemptions would apply to dedicated racing channels and programs, per IAG.
“Australia’s regulatory regime has been effective in stopping those overseas operators [who follow the rules] from providing their services from offshore into Australia, but not those operators conducting business in gray markets who have less regard for relevant regulations,” Nettleton asserted.
The industry veteran was also extremely suspicious of recent conversation about the idea of forming a national regulator for the iGaming space.
“You’re going to have conflict between the states about bringing in national regulation,” he told IAG. “I mean, how is NSW going to justify continuing its Point of Consumption tax if there is a national regulator generating levies? How is that going to work out? Product fees are also issued at a state level, and no-one will want to give up the golden goose.”
