Australia To Tighten Rules on Offshore Online Gambling Sites

The Australian government has introduced a bill that will tightens restrictions on offshore online gambling sites operating in the country. The bill would also ban live “click-to-call” wagering in the country, says Human Services Minister Alan Tudge (l.).

Australia’s Parliament will consider a new bill that would amend its gambling Act to ban live “click-to-call” online wagering in the country and tighten restrictions on offshore gambling sites.

The bill, titled the Interactive Gambling Amendment bill 2016, closes a loophole in the country’s gambling act that allows for live in-game bets as well as cracking down on offshore sites.

“Currently hundreds of illegal gambling services are easily accessible on the internet and we know that people are more likely to get into trouble online—2.7 percent of interactive gamblers are problem gamblers compared to 0.9 percent of all gamblers,” said Human Services Minister Alan Tudge in a press statement. “We expect online wagering providers to meet community expectations. The tougher laws will seriously disrupt illegal offshore providers from acting unscrupulously or targeting vulnerable Australians. The government is committed to taking tougher action against illegal offshore wagering providers and this bill does exactly that.”

The bill clarifies that online gambling sites must be licensed in Australia, eliminating the country’s gray market. It also allows the Australian Communications and Media Authority to impose penalties of up to AU$1.35 million ($1 million) per day for individuals, and up to AU$6.75 ($5 million) for companies found to be in violation of the law. The authority will also be given the power to disclose details about prohibited gambling services to international regulators.

The change could have implications for the New Jersey casino market as well. Currently, PokerStars and PartyPoker are both licensed to offer online play in New Jersey. The two sites also operate in the Australian gray market.

Gaming regulators in New Jersey have said that while they can’t make legal rulings on gray markets, they will not license companies that are operating in jurisdictions where law clearly makes it illegal. Both companies may have to either seek Australian licensing, or choose between the two markets.

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