The government of Australia intends to form a national agency dedicated to stamping out illegal offshore gambling.
The announcement came a day after domestic betting giant Tabcorp urged the government to do more to ensure Australian companies enjoyed a more level playing field with their unlicensed competitors.
The flow of money to foreign bookies is posing a risk to the integrity of sport and siphoning revenue that would otherwise be returned to the community and racing industry, Tabcorp’s chief of wagering Paula Dwyer said at the company’s recent annual shareholders meeting.
It is estimated that offshore operators took in A$1.2 billion in revenue from Australian players in 2013, of which $468 million came from casino games, which are illegal under the Interactive Gambling Act.
The problem is the Australian Communications and Media Authority, which is responsible for investigating online gambling content, has no enforcement powers. An ACMA spokesman said it conducted 23 investigations into overseas websites and referred 11 of those to the Australian Federal Police.
Dwyer, who has called for stricter enforcement, pointed to France, where the government in 2010 banned overseas operators from taking bets from French citizens, and to Britain, which is set to require that offshore operators obtain UK licensing.
“Tabcorp’s view is that a similarly powerful response is needed in Australia,” she said. “While it is difficult to measure precisely, there are estimates that as much as 14 percent of betting by Australian-based customers is conducted with operators who are not licensed in Australia.”
That would equate to an illegal spend of at least $3.6 billion based on forecasts that Australians will wager $26 billion this year on race and sports betting alone.
Federal Social Services Minister Kevin Andrews and Victoria State Premier Dennis Napthine have jointly announced they intend to push for a more effective regulatory regime to tackle the problem.
The Australian Wagering Council also is on board, according to Chief Executive Chris Downey, who said banning foreign bookies is one “of a number of necessary reforms to the Interactive Gambling Act”.
