Online gambling in Australia, whether offered by providers located in Australia or offshore, is regulated at a Federal level under the Interactive Gambling Act 2001 (Cth) (IGA). Many reviews have been undertaken over time by the Australian Government in relation to gambling, including online gambling. The most recent review was the 2015 review of the IGA by the then Minister for Social Services, which was overseen by Barry O'Farrell (O'Farrell Review). The O'Farrell Review considered methods to strengthen enforcement of the IGA and looked at the economic impacts of illegal offshore gambling, comparable international regulatory regimes, other technological and legislative options to limit illegal offshore wagering and the efficacy of different regimes to protect consumers. The recommendations of the O'Farrell Review, which concluded that governments should aim to reduce the scope of illegal offshore gambling and minimise associated harms, by taking a number of decisive steps, were largely accepted by the Australian Government.

The Interactive Gambling Amendment Bill 2016 (Bill) is intended to implement the first tranche of the proposed Australian Government reforms responding to the recommendations of the O'Farrell Review. The key provisions of the Bill are:

  • Clarification
    The Bill would clarify the interactive gambling services to which the IGA applies. Specifically, two types of interactive gambling services would be recognised, those that are per se illegal, that is, prohibited interactive gambling services, and a second category of regulated interactive gambling services. A person will only be permitted to provide regulated interactive gambling services in Australia where that person holds a licence under an Australian State or Territory law for the provision of the relevant type of service. Prohibited services would include online casino-style gaming services such as roulette or poker played for money or anything else of value. Regulated services would include those currently permitted, such as betting on horse or greyhound races and sporting events (but excluding online in-play betting on sporting events, as discussed further below).
  • Licensing regime
    As noted above, in order for regulated interactive gambling services to be offered in Australia without breach of the IGA, it will be necessary for the relevant provider to hold a licence. This regime would apply to all providers, wherever located. That means that offshore providers of regulated services will need to ensure a licence is obtained, even if the provider would not otherwise have a direct presence in Australia, to avoid breach of the IGA.
  • Civil Penalties
    The Bill would introduce a civil penalty regime, enforceable by the Australian Communications and Media Authority (ACMA). Under that regime, ACMA would have the ability to issue formal warnings, infringement notices and civil penalties as well as to seek injunctions. At the current time, the IGA contains an offences regime only. There have been no prosecutions under the IGA to date, notwithstanding that over 100 complaints have been referred by ACMA to the Australian Federal Police for investigation since 2007-8. This has limited the effectiveness of the IGA. Including a civil penalty regime will allow the ACMA to devote resources to enforcement. If ACMA is successful in pursuing breaches of the IGA, it is thought this will assist in ensuring that operators are deterred from offering prohibited services.
  • Click to call
    Under the IGA, online in-play betting on sports (that is, betting after the relevant event has commenced) is prohibited however in-play bets placed by telephone are not. In recent times, a number of offshore gambling services providers have offered 'click to call' services to Australian consumers. 'Click to call' services sought to take advantage of the different rules applying to telephone and online betting by allowing customers to make in-play bets online, but with some element of a voice call. The customer would typically initially be 'answered' by an automated voice when placing the bet or an automated voice would confirm the details of the bet, but details of the bet would typically be entered online. The Bill provides that click to call services are prohibited.
  • Sporting event definition
    The definition of 'sporting event' in the IGA is important as it is used to determine what is, or is not, in-play betting on sports events. This term does not have a precise definition – for example, views could differ as to whether the first round of a golf tournament is a sporting event in its own right or whether all of the rounds of that tournament should, in aggregate, be considered one event. To allow for greater certainty, the Bill would give the Minister the power to determine by legislative instrument whether a particular event falls within the definition of 'sporting event' for the purposes of the IGA.

The Bill was passed by the Australian Senate in March 2017, but with amendments. The amendments restrict the provision of online services that are paid for by credit made available by the provider. Those amendments will need to be approved by the House of Representatives before the Bill becomes law. If these amendments are accepted, the Bill may become law by mid-2017.

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.