New measures now considered by Australian Government in order to combat unlicensed gambling sites.

New measures by Australian govt to combat illegal gambling
Image source: World Casino Directory News

The Australian government has agreed to new measures aimed at increasing consumer protection within its licensed online gambling market.

This month Ministers reached an in-principle agreement on the reforms, some of which will be implemented as early as July.

Australian Human Services Minister Alan Tudge has said ISP blocking could be the next phase in Australia’s crusade to combat unlicensed operators. Included in the 11-measure package is the establishment of a national self-exclusion register, as well as a voluntary pre-commitment scheme which will allow players to set their own spending limits.

There will also be a ban on betting companies offering lines of credit. Operators, meanwhile, will be required to send activity statements to their customers to help them better track gambling spending. It will also be prohibited for any online gambling company to have any link to payday loans companies.

ISP Blocking Will be Explored

This is the new National Consumer Protection Framework, into which state and federal governments have plowed $3 million in investment. Much of that sum will go towards the establishment of a national gambling research model to help better understand the social impacts of gambling and how it can be more effectively regulated.

According to Alan Tudge from human services who spearheaded the reforms many Australians enjoy a punt and the agreement today paves the way for stronger protections for them. The rate of problem gambling online is three times higher than elsewhere, and online wagering is growing by 15 per cent per annum. In the future, more problems will come from online punting unless having better protections in place.

It is hopeful that these measures will have a profound impact and people will still be able to enjoy a bet, but have greater control and less chance of getting into trouble.

Tudge also said he would work with the gambling, financial and telecoms industries to explore the feasibility of ISPs blocking unlicensed operators and of financial institutions blocking gambling transactions.

Within the new measures, legislators have included the creation of a national self-exclusion register as well as a voluntary option which will allow players to set spending limits themselves. Betting companies will also be banned from offering lines of credit to gamblers. On the operator side, those who have a gaming license will to send customers activity statements which will help individuals to track gambling spending.

Online Poker Ban Counter-productive

The reforms are part of a larger drive not only to protect consumers but also to make it more difficult for unlicensed offshore companies to target Australians.

The country’s parliament is shortly expected to rubber-stamp something called the Interactive Gambling Amendment Bill, a well-meaning piece of legislation that has the unfortunate side-effect of banning online poker.

The act will clarify that only operators that are licensed in Australia will be permitted to offer gambling over the internet to Australian citizens.

But since the country does not license online poker, just sports betting, respectable online poker operators have little choice but to leave the market.

That will leave Australia’s thousands of online poker players exposed to the unlicensed, offshore market that cares little for the country’s domestic laws, which is exactly the state of fairs its politicians are trying avoid.