Australia's interactive gambling debates could be compared to a dance, although it's difficult to say
whether that dance is a foxtrot, waltz or slam dance. The dance continues, nonetheless, to some mysterious
song that only a few government officials can hear as the other dancers struggle to follow the steps and the
music. For some of the unwilling participants, the music is likely a silent, inexorable death march leading to the potential destruction of their livelihoods, as the federal government continues to push for a moratorium on interactive gambling in Australia--something many fear could lead to a permanent ban on Net betting.
At one point in time, Australia's online gaming industry proudly danced to a lively tune promoting that
proclaimed the nation's strong regulation of online gaming. Now, industry members are worried what the
government's efforts will bring. Even though the government failed Monday to implement a moratorium on
interactive gambling, some predict that the legislation may be reintroduced to Parliament.
For example, Senator Bob Brown from Tasmania told ABC News that he's giving the various jurisdictions six months' time to get their act together. He has written to state and territorial governments to warn that they need to work together to develop uniform laws controlling Internet gambling. "They (the state and territorial governments) have been in disarray…they have been disagreeing with each other and I can say now that if they don't get their act into order, that they don't have action by this time next year then I believe the Government will have a complete ban on online gambling before the Senate, and I believe it will go through," he warned.
Brown continued, "The majority in the Senate is clearly concerned about the impact of problem gambling. The last thing we want to do is do nothing. So if the states aren't up to getting in uniform laws which have teeth and which are effective then quite clearly the government is going to come up with a complete ban. Left with no alternative, I feel the Senate is going to be inclined to go that way."
The Senate's failure to impose a moratorium may have left Prime Minister John Howard temporarily
disappointed, but he vowed to continue his efforts against Internet gambling, Yahoo! reported.
Such comments concerned Peter Coroneos, executive director of Australia's Internet Industry Association. He warned that the moratorium's failure should not lead to an outright ban, a hint of which could jeopardize Australia's reputation and "send a message that the Australian government does not understand the global, instantaneous and decentralised nature of the Net."
He added, "Our message is 'regulate, don't ban'. Australian sites are already internationally recognized as being the most reputable and well controlled anywhere in the world. It makes more sense to build on that reputation, rather to deny it and force players into the hands of questionable operations offshore."
Lasseters Online Managing Director Peter Bridge was relieved by the moratorium's failure. "This is an encouraging result for our business and others in Australia's online gaming industry, who can continue to offer Australians regulated online gaming services that safeguard their interests," he said.
Bridge suggested that the moratorium's failure could positively affect the industry in new ways, saying, "The defeat of the moratorium in the Senate opens the way for the industry and the federal and state governments to work together in really understanding all of the issues surrounding online gaming, and maintaining regulatory controls with a strong focus on consumer gaming."
Jamie Nettleton, a partner in Sydney law firm Coudert Brothers added, "The only danger is that the federal government will seek to continue the uncertainty by indicating that it is continuing to investigate the possibility of a ban. . . . One way in this possibility could be minimised is if the states and territories work together in developing consistent player protection standards in the interactive gambling area soon."
This stance echoes comments made during the August On-Line Gaming Forum in Melbourne during which Liberal South Australia Senator Jeannie Ferris criticized the online gaming industry's failure to develop leadership or appoint a national spokesman, and its further failure to develop a consistent, positive public relations program to garner support for the industry. Her comments preceded news that the IIA had suggested a compromise plan.
Coroneos was encouraging the adoption of a compromise in which the retroactive 12-month moratorium would be ditched in favor of a three-month moratorium, effective immediately. During this period, the states would have to come to an agreement on how to approach Net betting. Should an agreement not be reached, the moratorium would be extended. At the time, one attendee suggested that the reason government authorities were willing to even discuss Coroneos' compromise was because the various state and territory governments had already shown their inability to develop a consistent approach. In the end the industry's inability to regulate itself would play into the government's hands, most likely resulting in the federal government's eventual take over of regulation, the source added.
While the Senate failed Monday to pass a moratorium on interactive gambling, it's very obvious that many members of the federal government have little love for the online gaming industry. This week's failure could very well just set up the next step for a moratorium or complete ban of interactive gambling in Australia. A group of industry members is scheduled to meet on October 27. The industry's fate could very well rest in the hands of these few representatives, which must decide whether online gaming can and will regulate itself.