The tension between Australian Prime Minister John Howard and most of the Australian state and territorial governments has escalated to a new level. Howard was reportedly infuriated yesterday when all but two of the Australian states formally announced their opposition to his proposed moratorium on the issuing of new Internet gaming licenses.
"We think there's too much gambling in this country already," Howard said in a radio interview,"and it's far easier to stop something starting than trying to wind back something that's been there for years." The prime minister is well-known for his strong anti-gambling stance and would actually prefer an outright ban on Internet gambling, according to some reports.
His preferences run counter to those of most Australian states' stance. "The attitude of some of the states on this is hard to fathom. It is irresponsible; they are just interested in the revenue," he told ABC News Online. "One of the states, Queensland, the government apparently has an interest in one of the operators who wants the Internet license."
Queensland joins most states and territories in its opposition of an Internet gambling ban, while Western Australia and New South Wales were Howard's only supporters.
One result of a ban, as Bill Foburn, head of Golden Caskets Interactive Gold pointed out, is obvious: "What it might do is encourage Australian players to move offshore because the Internet obviously does not have any geographical boundaries."
The ban could cause even more problems, according to Electronic Frontiers Australia chair Kimberly Heitman. "Ultimately one of the problems that this sort of policy will result in is that in the absence of law, criminals may be much more involved in Internet gambling than would otherwise be the case," Heitman said.
Another problem, already facing American e-gambling prohibitionists, is how to enforce prohibition--a dilemma that the Commonwealth Scientific and Industrial Research Organization is researching now.
For now, it isn't clear whether a moratorium exists. Senator Richard Alston, the Australian minister for communications, told the Sydney Morning Herald that the moratorium went into effect last week, following the governments' announcement of the ban. The states, however, don't appear to be on the same page. Several states, for example, continue to explore the lowering of Net betting tax rates. Tasmania introduced new rates yesterday.
As the tug of war continues, one thing is for sure: Even if Australia enforces a ban on e-gambling, many more nations are ready to take its spot. It's to the point now that anyone spinning a globe could easily find a Net betting licensing jurisdiction.