The Australian Black Economy Taskforce will call for stricter law enforcement drives against illegal betting operations in a soon-to-be-released report, according to a story in the Sydney Morning Herald.
The report due next month says the taskforce estimates that about 1 billion Australian dollars—about $805 million—moves through the illegal exchanges annually. The taskforce identifies at least 10 illegal exchanges with the money being funneled to a single exchange.
Taskforce Chairman Michael Andrew said the exchanges are linked to local and international crime syndicates, particularly Asian crime gangs. Andrew said the taskforce got the information through 147 submissions it received, some coming from the racing industry insiders, the report said.
“During our work we have identified numerous illegal betting exchanges operating in Australia, many connected to Asian crime gangs,” Andrew told the newspaper. “They use these illegal betting exchanges to convert black money into white money. We have for several months been gathering information on these agents and punters but welcome any more intelligence from the community.”
The report comes as the country installs a new Interactive Gambling Amendment Act and warns that illegal operators are facing serious fines and penalties under the new regulations. The act also outlawed in-play sports betting, as well as leaving online poker and casino games illegal in Australia.
“Illegal gambling undermines the integrity of our racing and sports entertainment industries. It makes no economic contribution to social infrastructure, state taxation nor to the cost of the racing product,” Andrew said. “It puts legal betting operators at a large competitive disadvantage especially with high volume professional punters.”
The report also calls for businesses, professional bodies and ethnic and religious community leaders to help the government find ways to fight illegal gambling.
Meanwhile, the government of Western Australia announced a plan for a new tax rate on online bookmakers, according to The Australian newspaper.
The state government’s budget includes a point of consumption tax of 15 percent. The tax is on par with a tax approved by South Australia in July.
The tax was opposed by the industry group Responsible Wagering Australia.
“The WA Government’s decision needlessly puts at risk the potential of achieving nationally harmonized approaches to taxation and consumer protection in the wagering industry,” the group said in a news release.
Stephen Conroy, the executive director of the RWA said that the tax would force operators to pass on the additional cost to their customers and lead to a reduction in revenue for the state’s racing industry, as well as an increase in dependence on government funding, the report said.
