Okay Australia, Now What?

11 December 2000
One can expect that Australian states in coming weeks will put forth an effort have the federal government's moratorium on Internet gambling lifted. If they are unsuccessful, however, and the moratorium sticks, by what means will the federal government formulate a long term policy beyond its May 18, 2001 deadline?

A major determinant in developing such a policy will be the outcome of a study, announced in July, in which the National Office for the Information Economy, in consultation with the Department of Family and Community Services and the Treasury, will explore the feasibility and consequences of a ban.

The study is currently being finalized, after having received at least 59 written submissions. (Most of the submissions can be read on the NOIE website at http://www.noie.gov.au/projects/consumer/gambling/subs.htm.) The NOIE has yet to announce when its findings will be released.

"Although predisposed to a permanent ban on new forms of interactive gambling, the government will make a final decision on a permanent ban after considering the findings of the NOIE report," Senator Richard Alston said in announcement regarding the moratorium's passing. Alston, along with Prime Minister John Howard, has spearheaded Australia's moratorium efforts.

The statement added, "In making a decision on a permanent ban, the government would also consider any national regulatory codes formulated by the states and territories. At this stage, however, while the States and Territories have identified the need for a national regulatory scheme, the standard of protection and timing for the introduction of that scheme remains uncertain. Meanwhile, the new interactive gambling industry would continue to grow without the Government's moratorium."

Previous studies, such as the Netbets report from the Senate and the massive final report released by the Productivity Commission, outlined a number of problems that the interactive gaming industry needed to address, yet stopped short of promoting a ban. Further, the Netbets report favored a harm minimization approach. Alston and Howard, both longtime foes of the industry, brushed this recommendation aside.

More recently, the Senate Environment, Communications, Information Technology and the Arts Legislation Committee conducted a similar study to the NIOE prior to the first moratorium vote in October. The committee issued a lengthy report virtually dismissing the many written submissions and oral testimony that explained a ban on interactive gambling is not technically feasible or necessary. (See " Aussie Senate Releases Report On Moratorium.")

The federal government has indicated that the final six months of the moratorium will be devoted to studying whether an outright ban is economically and technically feasible. A detailed agenda hasn't been released.