Australia may shut out some of the best known online gambling sites from its shores by simply requiring that online operators obtain an online gambling license in the country.
According to various reports, Amaya Inc., owner of PokerStars, as well as PartyPoker and 888 Poker are objecting to the proposed changes in the Australian Gambling Act and are considering exiting the market.
Australia’s Parliament is considering the Interactive Gambling Amendment Bill 2016, which would amend the country’s Gambling Act of 2001. The bill would require online gambling sites to be licensed or face heavy fines. The fines would be issued by the Australian Communications and Media Authority
For online poker sites, Australia has been considered a “gray market.” However, under the new law, Australian officials have said they will crack down on unlicensed sites operating in the country. Poker sites, however, would have a hard time getting licensed in the country, as the current Gambling Act allows only for limited forms of sports betting and lotteries. Other gambling operations, such as online casino games and poker, would be prohibited.
The amendments read: “Prohibited services under the IGA include online casino-style gaming services of chance or mixed skill and chance, such as blackjack, roulette and poker, which are played for money or anything else of value. Wagering and lotteries are permitted under limited circumstances.”
Sites found to be operating illegally could face fines up to $992,000 per day, while companies could be charged as much as A$6.75 million.
Officials for Amaya have said that the change could lead to PokerStars blocking players form Australia.
“In Australia, we currently offer poker and are reviewing the applicability of proposed legislation to player-versus-player games of skill,” said Daniel Sebag, CFO for the company during and investor’s call. “At this time, it would appear likely that if the legislation passes, we would block players from Australia, as we do not offer casino sportsbook in Australia.”
Sebag said online poker in Australia accounts for 2.5 percent of PokerStars revenue.
PartyPoker and 888Poker are also reported to have said that they will exit the market should the new legislation come into effect.
The bill also would close a loophole on in-play betting for online sportsbooks. Many operators have gotten around this restriction with a click-to-call feature using telephone lines to accept bets.
