Australian states and territories, with the exception of Western Australia and New South Wales, have chosen not to acknowledge a federally imposed moratorium on the issuing of Internet gaming licenses. So, the federal government has consequently introduced legislation to ban the issuing of new licenses during the next twelve months.
During a press conference announcing the legislation, Acting Communications Minister Peter McGauran said, "The community does not want a virtual casino in every lounge room." He also told reporters that the legislation would be effective today, no matter what date the law is actually passed.
The announcement, no doubt, was partly in response to the Australian Capital Territory's issuance of new interactive gaming licenses to both the Tattersalls gaming group and the state-owned ACT TAB. As many as 12 more licenses are under consideration by the territory government, in defiance of the national government's proposal.
ACT Treasure Gary Humphries received a written request on Friday from federal Information Technology Minister Richard Alston to not issue any more licenses. "He warned us that it is possible any further licenses issued would be revoked or cancelled."
"But we think it is important that Australian gamblers have access to quality, responsible sites in Australia where there is protection for problem gamblers. There is no effective hope for preventing access for Australian gamblers to online gaming," Humphries told Reuters.
In Australia, the federal government regulates the Internet, while each state and territory government is responsible for regulating gambling. Except for New South Wales and Western Australia, all states and territories have rejected the proposal.
The federal government has also asked for the states' cooperation in a proposed inquiry into the feasibility and consequences of the ban.
The Northern Territory is reportedly prepared to fight the moratorium all the way to the High Court. NT Chief Minister Denis Burke told ABC News that his government would not be bullied into accepting it and that the ban puts the federal government at risk of becoming "thought police."
Australia's only licensed virtual casino, Lasseters Online, also blasted the moratorium. "It is ridiculous that under the proposed moratorium, Australian players can access Australian online gaming operators who are licensed offshore but offer little more control than a rubber stamp. But the sites that have invested heavily in player protection are victimised and prevented from offering a safe alternative," Lasseters General Manager David Ohlson said.
"It is important to recognize that the moratorium is not yet law and there is certain to be a lot of discussion before this legislation is passed," Ohlson added.
Although the moratorium is unlikely to affect Lasseters Online, Ohlson was disappointed that no consideration was given to blocking Australian's access to international online gaming sites. The moratorium, after all, was first proposed because Prime Minister John Howard was disturbed by the recent Productivity Commission's report that more than 200,000 problem gamblers reside in Australia.