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Uncovering the Fascinating Landscape of Gambling in Australia: An Industry
Overview |
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| Image by
OpenClipart-Vectors from
Pixabay |
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Gambling is a sport that is widely accepted and embraced in Australia. From the new research by the Australian
Gambling Research Centre (AGRC) in 2015, it was revealed that over 6.8 million people are engaged in regular gambling activities which involves spending money
on different forms of gambling at least once a month.
It is interesting to note that the Australians with the highest rate of gambling being undertaken
around the world possess the most progressive rules in the context of gambling regulations. The country has multiple legal casino houses which both provide
physical and best online casino Australia real money platforms including legal and
regulated poker rooms. Also, EGMs, which are electronic-based gaming machines otherwise called “pokies”, are widely accessible in pubs, clubs, and
bars, and they are providing entertainment alongside lottery games which is a popular choice.
Sports betting industry is regulated, with TAB
(Totalisator Agency Board) sports betting shops providing punters the opportunity to bet both tote and fixed odds, with approximately 3,000 retail outlets
being operational. Established in 1961, following the trend, TAB shops were currently government-owned structures. However, with time, after modernization in
2015 as the primary changes, particularly in Queensland, South Australia, Northern Territory, and Tasmania, different shops were converted to UBET
shops.
In accord with the global norms, bingo is widely played in Australia, along with a limited number of land-based casinos that are regulated by the
Casino Control Act of 2006. The state and territory legislations specifically control the land-based gambling that includes the casinos of Sydney, Brisbane,
Melbourne, Perth, Adelaide, and the national capital.
On the other hand, Australia can also be regarded as a country that has legalized online gaming as
early as 2001, through the implementation of the Interactive Gambling Act (IGA), which primarily aimed to impose restrictions on the operators as opposed to
the players. From the legal standpoint, playing casino games on the Internet is not a crime and the winners are not liable for paying tax, because such virtual
gambling is considered a recreational activity and not the kind of profession.
Overview
In Australia, gaming policy has been traditionally one and only the responsibility of the Australian States in which the
Commonwealth also has a hands-on of the gambling regulation. State and Territories governments responsible for regulations in the field of gambling as well as
for the services’ supply come first. There is available data from a 2017 study of Tasmanian Department of Treasury and Finance showing gambling revenue
contributing to 7.7% of the total state and territory taxation revenues.
Each State regulates its own gambling legislation and licensing of these
establishments to protect players in them, whether it is a land based casino, betting shop, or any other gambling place. The execution of these policies is
actively supervised by different governmental bodies, such as commissions, councils, and state agencies. The recent changes to legislative procedures have
given the Commonwealth the opportunity to join the other states by also becoming more active in regulating the gambling industry.
Providing people with
health related difficulties associated with gambling, the Commonwealth organized a query through the Productivity Commission, which has shown that 0.5% -1.00%
of the public faced serious issues stemming from their gambling addictions.
Besides, the new trend of online gambling forced improvement of the
regulation model of the state, which was aimed at regulation and management instead of prohibition. By 2001, an Act regarding Interactive Gambling was enacted,
restricting the capabilities of Australia owned online gambling websites from offering gambling services to the locals. The aim here was that players would be
protected from the detrimental effects of online gambling, and that it would represent a proper source of revenue through license fees and tax
acquired.
Attitudes towards the gaming business started to soften thanks to those who started to realize that it could create jobs and income as well as
bring social benefits. This sector does not only deliver job opportunities to the populace but importantly avails a respectable amount of revenue toward the
government through normal taxation policies. This revenue funds both the social, sporting infrastructure and community organizations. Fiscal statistics are
clearly illustrated by the numbers that show the state government is getting the benefits from poker machines and other forms of gambling with the last figures
mentioning gambling being like the 9-10% of the total state tax revenue on average.
Taxation laws are quite different from state to state with a
spectrum of measures, i.e imposing operators based on profit or turnover and the players loss. The heterogeneity in the tax rate and gambling services in each
of the states is what this diversity stands for.
Regulation of Gambling in
Australia
Presently, the way gambling is regulated in Australia takes place at both federal and state levels. The first level of the hierarchy is
attributed to the central government, the Commonwealth, which has the power to enact and modify laws. The role of the Commonwealth in this hierarchy is that of
a regulator and the legislative body with limited jurisdiction.
At the same time, gambling legislation is mainly a state and territory matter whereas
multiple jurisdictions are involved. Besides, the legal aspects of the industry is based on the statutes and the judicial opinion which are passed at the local
level.
In the case of Australia, gambling regulation is implemented through designated ministers in each of the regional jurisdictions who draft laws
and design policies. On the other hand, government authorities are independent regulators, with agencies and institutions from various regions doing the
regulation through different institutions. These agencies include the New South Wales Office of Liquor, Gaming and Racing, the Licensing Commission in the
Northern Territory, the ACT Gambling and Racing Commission, the Department of Racing, Gaming, and Liquor in Western Australia, the Independent Gambling
Authority in South Australia, the Office of Liquor and Gaming Regulation in Queensland, the Tasmanian Gaming Commission, and the Victorian Commission for
Gambling and Liquor.
Subsequently, the independent regulators such as (WA’s DRGL and Northern Territory’s Licensing Commission), and some
federal departments have the mandate of regulating the various gambling operations in Australia. But the most important of them are Australian Communications
and Media Authority (interactive gambling), Australian Transaction Reports and Analysis Centre (anti-money laundering), and Australian Federal Police
(interactive gambling and financial crime). First of all, the specialized type of license in Australia limits the gambling operators, and in terms of what they
can provide and offer to their clients. On the other hand, the land-based casinos are restricted in their offerings to providing casino games and pokies to
customers physically in the casino while clubs and hotels which are all licensed can provide both pokies and Keno on their premises. Bookmakers and betting
companies that offer fixed-odds products are allowed to give such services in physical institutions and remotely (including online), with other enterprises
taking tote betting (totalizator) tote betting on their list. Furthermore, instead of lotteries in the national lottery games, it is commercial lottery
operators who sell the tickets and the customers can buy them either in shops or online.
The pros bypass the Australian legislation since they can have
an opportunity of catering to foreign players and not the Australian citizens. In addition, offshore online casinos attract and accept a lot of Australian
players, despite the fact that such activity is prohibited officially. Such explanation follows in the upcoming paragraphs.
The Interactive Gambling Act of 2001
The Interactive Gambling Act of 2001 was the result of the
legislative process by the Commonwealth Parliament of Australia in June 2001 with the primary objective of protecting society’s interests from the
pervasive influence of Internet-based gambling. The Act entered into force in early July, only a month after getting Royal assent on July 11. It primarily
targets operators with a ban on offering real-money interactive gambling to Australians and people in "designated countries". This ban encompasses both
Australia-based and international online service providers as the government attempts to control advertising of such services within the country.
In
spite of these restraints, there are exemptions to the legislation of the country thus suiting some online gambling companies. Betting in sports as well as
online lotteries is permitted so long as bets were placed before a sporting event kick off and electronic lotteries unless they are instant win scratch
cards.
The Act of 2001 excludes the interactive gambling services forms like those of in-running or in-play betting but still the companies in Australia
are allowed to remain as the gambling service providers for overseas customers. The experienced operators whether local or offshore had not any right to offer
real-money interactive services to Australian based shoppers because that was absolutely prohibited. However, it was lawful for the customers to use such
services by any means. It has been evident that most people in Australia can easily get several casino games and even purchase tickets through websites away
from the country.
In 2012 an official research led to an understanding of the limitations of the Act which might cause harm to the public, as a result,
the Interactive 2016 Gambling Amendment Bill passed in 2017. The bill defines the law, grants more powers to the Australian Communications and Media Authority
(ACMA) to enforce the laws and even comes up with an out-right ban on online poker. Besides these decisions, however, Australians themselves cannot be put in
legal liability for using online casinos licensed in other countries, this leaving an area of uncertainty where many online casinos run being immune from
authorities of territorial jurisdiction.
The ACT Gambling and Racing Commission
The
independent ACT Gambling and Racing Commission was set in place concerning the guidelines enclosed in Section 5 of the Gambling and Racing Control Act, 1999.
This legislation was meant to offer active, ongoing monitoring, supervision, and administration of several Acts associated with racing and gambling and also
gives the Commission its duties, responsibilities, and rights.
The ACT Gambling and Racing Commission is charged with important duties. Primarily, it
monitors and controls all activities of casinos, gaming machines, racing events, betting activities, lotteries and online gambling happenings rolling inside
the Australian territory. Coming to this place, the Commission is authorized to approve them and also to keep track of their social impact on the
community.
As a second function, the Commission will conduct systematic review of racing and gaming acts and laws as well as give the Minister
recommendations if necessary. It also lends its power to conduct probes on anything related to race track or gaming operations. Furthermore, the Commission is
also tasked with collecting the compulsory fees and taxes and any charges provided for in the governing gaming rules of the country.
The Independent Gambling Authority
The Independent Gambling Authority, which is the main regulatory body
established for the purpose of supervision, overseeing, and ensuring the compliance of commercial gambling rules and regulations in the territory of South
Australia. The duties of such bodies should be independently performed beyond any Ministerial intervention taking into account that they are required to be
held accountable to the Parliament of gambling through the Minister for Gambling.
The IGA is currently responsible for law enforcement, including the
entertainment in the gaming machines in the casinos, clubs and hotels, also racing and sports betting, as well as commercial lotteries. All the actions of all
the authorities are grounded in the national laws of the country.
The functions and responsibilities of the Independent Gambling Authority are regulated
by the Independent Gambling Authority Act 1995 which is the relevant legislation of the parliament. The organization has its members taking up appointments
from the South Australian government and they predominantly act as a regulator that holds the supervisory role to ensure the licensed gambling industry in
South Australia is well supervised.
Responsible Wagering Australia
Responsible Wagering
Australia (RWA), which took over from the former Australian Wagering Council (AWC) presents a newer face of the industry. AWC was a trade association and
lobbying group that, unfortunately, closed down after losing its key member (in this case it was both Ladbrokes and William Hill). These foreign companies shut
their internet business operations after the passing of the Interactive Gambling Amendment Bill 2016 which led to total ban on in-play betting.
These
are intertwined with the leading entity that performs in the guise of the advocacy group in the Australian crypto-currency sector, an independent and
autonomous private company constructed to safeguard the interests of the industry of the country of Australia. In the month of June, 2020, there are seven
different companies that are members of the association including bet365 , BetEasy, Sportbet, Betfair, Unibet and GVC- Ladbrokes and Neds.
Responsible
Wagering Australia underscores that their members should not only acquire licenses from Australian authorities for provision of online sports betting services
but also remain subject to the codes of the association. Gambling websites exhibiting the RWA badge certify that the aim of their operation is consistent with
absolute integrity. |
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