Under a spotlight cast by the many industries with an interest at stake in online gambling, Australia's federal legislature adjourned yesterday without passing a prohibition bill. The day did, however, see the legislation formally introduced. Parliament will reconvene in six weeks, just in time to address the fate of Internet gambling before the one-year moratorium on expansion of the industry, which expires May 19.
The government is hoping to turn the yearlong ban into a permanent one, but there was no vote on the last day before the spring break.
Under the terms of the bill, online gambling operations based in Australia would be allowed to stay open for business, but they would be forbidden to take bets from customers in Australia. Likewise, Australian residents would be allowed to gamble on the Internet, but only with offshore casinos.
The legislation was introduced in the Senate and in addition to the bill calling for a permanent ban on Internet gambling some 70 clauses weighed down the legislation. If the clauses weren't enough to keep Senators from casting a vote, 50 pages of explanatory text were added on to the bill.
The clause that has garnered the most attention is a provision which will fine Australian operates $1.1 million a day if they allow Australians to place bets.
The bill will also prevent online casinos from advertising in Australia. The provision, which aims to keep overseas operators from luring local punters, is similar to a ban on cigarette advertising in Australia.
Opponents of the measure say that it's hypocritical to forbid online casinos from tapping into the Australian customer base, thereby forcing players to patronize offshore sites. Under the current system, Australian operators are required to meet high standards to stay in line with Australian regulations, and opponents of the bill say that it's wrong to deny Australian punters the protection of those standards.
The leading proponent to the bill, Communications Minister Richard Alston, told the Parliament on Thursday that the legislation needs to be passed to protect the country’s younger generation.
"Today's young Australians are accustomed to spending significant amounts of time playing computer games and using the Internet and other new technologies and this makes them particularly susceptible to these new forms of gambling," he said.
The explanatory notes, which were tabled with the bill, address the issue of lost jobs if online casino operators are forced to close up shop.
"The recommended option would have some impact on employment in regional Australia," they read. "To the extent that elements of the interactive gambling industry most severely impacted by the restrictions may be located in regional Australia. These include interactive wagering and lottery providers."
Over the last weeks those opposed to a permanent ban--from operators to politicians--have been expressing their displeasure with the government and what they perceive as a double standard.
If a vote is not made on a permanent ban before May 19, the government could move for a temporary extension until a permanent solution put in place.