Proposed reforms in Australia’s gambling landscape stirred controversy amid an increasing percentage of people in the country suffering from problem gambling. This new report released by a federal government commission in Australia has set in motion a heated debate regarding potential reforms that could have a profound impact on the country’s gambling industry. The report, titled “You Win Some, You Lose More,” was not welcomed with open arms by everyone as it recommends a complete ban on gambling advertising and the establishment of a new regulatory framework.
According to the report, online gambling advertisements would face a complete ban within a three-year timeframe. Moreover, one of the key factors in gambling – rewards and incentives – might also be completely abolished. Just the latter is enough to throw a major wrench in the way casinos operate. With the upcoming ad ban, this will completely change the way gambling businesses work. Another significant change proposed in the report is the shift from the current state-based control over gambling laws to the introduction of a federal regulator, which is argued to be more effective.
As it stands, Australia’s states are free to put forward the gambling laws they see fit, but this might also change in the future if a federal regulator is put in the seat of power.
How It All Started
The report, resulting from an extensive nine-month investigation, brought forward numerous testimonies highlighting the perceived detrimental consequences and societal repercussions associated with online gambling. While the rate of “problem gambling” in Australia stands at less than 1% of the population, the government officials leading the investigation assert that the economic impact is substantial, with Australians estimated to lose over AU$25 billion (US$16.5 billion) annually through gambling.
Of course, giants in the industry aim to make their games fairly equitable for the players, but it’s also true that the house always wins in the end. We see this in terms of numbers as reported by the government officials. The only figure giving hope to business owners is that problem gambling isn’t a sweeping problem. This could alleviate the future sanctions.
A Plan with Three Phases
To address the concerns raised by the results, the report recommends a phased plan of action. The initial phase, which would be implemented immediately, proposes a ban on gambling inducements – credits and bonuses. The second phase aims to enforce a complete ban on online gambling advertising, including commentary on game odds. This ban would come into effect one hour before a contest and extend until one hour after its conclusion, extending to stadiums and player uniforms as well.
The third phase targets the restriction of gambling broadcasts between 6 a.m. and 10 p.m., while the last phase seeks to eliminate all online gambling ads and sponsorships. If you thought that it was hard to find the money to upgrade your old car, just imagine how gambling business owners will feel about not being able to promote their business. Navigating the legal landscape of Australian gambling is about to get very technical.
How the Future Looks
Everyone knows there are questions you have to ask a realtor before buying a house and so there are questions you need to get an answer to before you start gambling. Currently, in Australia, it is illegal to offer online casino games. The Interactive Gambling Act 2001 prohibits the provision of such services to Australian residents. This legislation was put in place to protect consumers and minimise the potential harm associated with online gambling. However, should regulations change in the future, there is a high likelihood that local online sports betting companies and major international players would show interest in offering online casino games in the Australian market.
Local online sports betting companies, which are already established and regulated within the country, would be well-positioned to expand their offerings to include online casino games. This would allow them to tap into a new revenue stream and cater to a broader customer base.
Additionally, big international companies such as Betsson, Kindred, Entain, and Flutter, known for their expertise in online gambling, may also seize the opportunity to enter the Australian market. These companies have the necessary resources, experience, and brand recognition to establish a strong presence in the country.
Moreover, renowned software suppliers like Net Entertainment (now part of Evolution), Play’n GO, and Playtech could play a significant role by offering their established games to the local market. These companies are known for their high-quality and diverse game portfolios and the ability to deliver world-class gambling experiences to their user base.
