National Concern with Interactive Gambling Legislation Down Under

30 April 1998

Sydney -- The legalization and regulation of online gambling in Queensland, Australia isn't going to come easy. Australia's recent Internet and interactive gambling legislation could be thwarted by difficulties in inter-governmental relations.

Inconsistent policies between the various jurisdictions may make the recently passed Queensland legislation impossible to implement, a top rated policy advisor and researcher mentioned.

"Gaming authorities are addressing the interactive gambling issues at a state level, yet telecommunications technology, banking and financial matters, and agreements with other nations fall under the Constitutional power of the Commonwealth," said Professor Jan McMillen, director of the Australian Institute for Gambling Research, University of Western Sydney Macarthur.

"This is a serious concern facing the pro-active gaming regulators who are trying to provide a comprehensive framework for the regulation of interactive gambling on a state and national level," he continued.

In a landmark decision, the Queensland government recently passed legislation as the first initiative to control interactive gambling. The aim of the Interactive Gambling (Player Protection) Bill, as announced by Treasurer Joan Sheldon last month, is to regulate this new form of technology at a state level, followed by a national co-operative approach.

From the public interest perspective, it's also important to minimize the social and economic harm for the community's benefit.

According to McMillen, the question is whether the Australian inter-governmental agreement will hold up on a national level. "If Australia's international reputation as an effective regulator is to be maintained, the states and territories must work together to develop effective common standards and policies," he said. "We also have to grapple with the potential of the technology. Even though we don't know the socio-economic effects and integrity of the products that we're dealing with, we need to deal, now, with these types of issues."

The Australian Institute of Criminology and Australian Institute of Gambling Research are bringing together key government advisers, experienced researchers, the industry and the community to explore the regulation of interactive gambling and its implications.

Dr. Adam Graycar, Director of the Australian Institute of Criminology, explained that betting on the internet is already popular, judging by the number of sites available and the prolific advertising of virtual casinos. "We're only at the tip of the iceberg," Graycar said.

IDC, for instance, says that we're now in the second wave of the internet. While it's estimated that $200 million will be spent this year electronically, a combination of confidence and an increase in online access should result in $2 billion to be spent annually by the year 2002 via e-commerce.

"The aim of our conference is to collaboratively address the criminal, social, regulatory and commercial issues of interactive gambling and start moving towards improving the solutions," Graycar said. "To try to prohibit interactive gambling is to deny reality."

The conference, titled "Gambling, Technology & Society: Regulatory challenges of the 21st Century" will be held May 7-8 at the Rex Hotel, Potts Point Sydney.

"I hope that this conference will draw attention to the fact that Australia has positioned itself as a leader in addressing the issue of gambling, technology, and society," McMillen said.

It appears that this new form of gaming delivery is going to be impossible to restrict in the same way that we controlled and regulated site-specific gambling. For some operators who are able to position themselves strategically, it provides a global opportunity. New technology, however, has the potential to both expand the market overall and cannibalize existing gambling markets.

For further information contact Peter Grabosky at the Australian Institute of Criminology on (02) 6260 9226 or Richard Woolley at the Australian Institute for Gambling Research on (02) 9772 6274.