Legislative and Regulatory Review
2023 has been a year in which numerous changes have been implemented following the conclusion of inquiries and reviews in relation to the conduct of land-based casino operators, and the implementation of the final measures of the National Consumer Protection Framework (NCPF) (for online wagering operators).
These measures are shaping the updated regulatory framework for gambling in Australia. They relate mainly to a more thorough suitability review of individuals involved in the ownership, management and operations of a gambling business, and to the introduction of further responsible gambling measures.
The final measures of the NCPF were implemented during 2023. This concluded a process, which commenced in November 2018, to introduce throughout Australia ten responsible gambling measures.
The Australian Transaction Reports and Analysis Centre (AUSTRAC, the Australian federal regulator responsible for ensuring compliance with Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the corresponding Rules (the “AML/CTF Laws”) has conducted investigations into the operations of leading Australian casinos and corporate sports bookmakers.
The outcome of the Federal Court of Australia proceedings resulted in the issue of a penalty of AUD450 million against Crown Melbourne and Crown Perth for serious and systemic non-compliance with obligations under the AML/CTF Laws. Further, AUSTRAC has commenced separate civil penalty proceedings in the Federal Court of Australia against The Star and SkyCity in relation to breaches of the AML/CTF Laws.
The casino inquiries have had consequential effects on other gambling sectors in Australia. The New South Wales (NSW) regulator, Liquor & Gaming NSW (LGNSW), is overseeing four trials of cashless methods for play on gaming machines (also referred to as pokies). These trials include the use of systems which eliminate the use of cash in gaming machines in clubs and hotels, and which permit the use of technology for verifying customer details. The trials are being reviewed by an independent researcher, and findings of the trials are expected to be released in late 2023.
Following the conclusion of the inquiry into online gambling and its impact on those experiencing gambling harm, the Federal Parliamentary Committee issued its final report in June 2023. The Report, entitled You win some, you lose more, includes 31 recommendations which are being considered by the Australian government.
As a result of recent changes, online wagering operators are required to complete customer verification in advance of any designated service being provided, including prior to the opening of a wagering account.
AUSTRAC is continuing to review the procedures of online wagering operators more closely to ensure that they comply with their AML/CTF obligations. In September 2022, AUSTRAC commenced an enforcement investigation into Entain Australia, and in November 2022 ordered the appointment of an external auditor separately to Sportsbet and to bet365, to assess their compliance with the applicable AML/CTF Laws. The outcome of these matters is not yet known.
Recent changes are discussed in more detail below.
AUSTRAC Proceedings
Crown proceedings
AUSTRAC commenced civil penalty proceedings in the Federal Court of Australia against Crown Melbourne and Crown Perth (“Crown”) on 1 March 2022 for alleged serious and systematic breaches of the AML/CTF Laws.
On 11 July 2023, the Federal Court approved a settlement reached between AUSTRAC and Crown for the payment of AUD450 million in respect of Crown’s breaches.
Crown confirmed, as part of the settlement, that it has conducted activities in contravention of the AML/CTF Laws. The breaches related to:
In its decision on 11 July 2023, the Federal Court ordered that:
The Star proceedings
On 30 November 2022, AUSTRAC commenced civil penalty proceedings in the Federal Court of Australia against The Star Pty Limited and The Star Entertainment QLD Limited (the “Star Entities”) for alleged breaches of the AML/CTF Laws.
AUSTRAC claims that there have been various contraventions of the AML/CTF Laws by the Star Entities, including failures to:
AUSTRAC has not yet detailed the quantum of the penalty that is being sought.
Case management hearings took place before the Federal Court in February and July 2023. Unless settled previously, the hearing is due to commence on 4 March 2024.
SkyCity proceedings
On 7 December 2022, AUSTRAC commenced civil penalty proceedings in the Federal Court of Australia against SkyCity Adelaide Pty Limited (“SkyCity Adelaide”) for breaches of the AML/CTF Laws.
In a manner similar to the AUSTRAC proceedings commenced against the Star Entities, AUSTRAC claims that there have been various contraventions of the AML/CTF Laws by SkyCity Adelaide.
Case management hearings have taken place before the Federal Court, with further hearings anticipated in the coming months.
Pending the outcome of the Federal Court proceedings against SkyCity Adelaide, the South Australian government has put on hold an independent review of SkyCity Adelaide, and has appointed an independent monitor to monitor SkyCity Adelaide’s compliance.
Updates Following the Casino Reviews in Victoria, Western Australia, NSW and Queensland
Victoria
A key recommendation of the Report of the Royal Commission in Victoria (delivered on 15 October 2021), which has been implemented, is the appointment of a special manager (effective from 1 January 2022 for a two-year period) to oversee the operations of Crown Melbourne, and to monitor whether Crown Melbourne addresses the issues and failings identified by the Royal Commission.
The special manager has submitted bi-annual activity reports to the Victorian Gambling and Casino Control Commission (VGCCC) and to the Victorian government. The final report is expected in January 2024.
The special manager’s interim activity reports and the final report will play a key role in informing the VGCCC’s decision as to whether Crown Melbourne has returned to suitability to hold the Melbourne casino operator licence. The decision is expected within three months from the special manager’s final report.
Western Australia
Similar to Victoria, the Western Australian government established the Office of the Independent Monitor to oversee, monitor and report on the two-year remediation plan at Crown Perth. This was one of the key recommendations from the 59 recommendations in the Report of the Royal Commission provided to the Western Australian government on 4 March 2022. The role of the independent monitor commenced on 31 October 2022.
On 16 March 2023, the Western Australian government provided its official response to the Royal Commission’s Report. The government confirmed that, of the 59 recommendations, it supported 49, eight in principle and one in part. It also stated that one recommendation was not applicable since gaming machines are only available in the casino. The government outlined that certain recommendations have been implemented, and has indicated that it will introduce legislative amendments later in 2023 to give effect to the remaining recommendations.
NSW
The term of the special manager’s appointment for supervising The Star’s operations expires on 19 January 2024. The NSW Independent Casino Commission is likely to review its decision to suspend The Star’s NSW casino licence closer to the expiry of the special manager’s appointment.
Queensland
Following submissions made by The Star in response to show-cause notices, the Attorney General, the responsible Minister, and the Office of Liquor and Gaming Regulation determined on 9 December 2022 that The Star:
The special manager appointed in NSW was also appointed to act as special manager in Queensland. This appointment is ongoing.
National Consumer Protection Framework
The final measures of the NCPF were implemented in 2023 to complete the implementation of the 10 NCPF measures.
The measures implemented in 2023 are:
Staff training
Existing staff of online wagering operators that are involved in the provision of wagering services or have the capacity to influence the wagering services were required to undergo responsible wagering training by 30 March 2023.
New staff of online wagering operators are required to undergo responsible wagering training within the first month of their employment and prior to interacting with customers.
Staff that undergo responsible wagering training are required to undergo annual refresher training.
Consistent gambling messaging
From 30 March 2023, online wagering operators are required to utilise prescribed responsible gambling taglines in the advertising of their online wagering services and on their websites and apps.
The taglines that the online wagering operators must publish are as follows.
It is no longer sufficient to solely refer to Gamble Responsibly to satisfy the requirement of including a responsible gambling message.
The taglines to be used differ depending on the platform used for the advertising. The taglines must be rotated equally over a 12-month period.
The taglines must also include a call to action which differs depending on the platform used and the duration of the advertisement. The shortest call to action is “Set a deposit limit”, and the full call to action is “For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au”.
There are various requirements relating to the taglines prescribed and the call to action which online wagering operators must consider when advertising, including:
Branding is not usually considered advertising.
BetStop – the National Self-Exclusion Register
The implementation of BetStop was delayed after the operator initially engaged by the Australian Communications and Media Authority (ACMA) entered administration. The ACMA subsequently approved IXUP Limited to operate BetStop.
BetStop was launched on 21 August 2023. It provides Australian residents with the possibility to self-exclude for a period of three months to permanent self-exclusion from all licensed online wagering operators.
Online wagering operators must comply with requirements relating to BetStop set out in the Interactive Gambling Act 2001 (IGA) and the Interactive Gambling (National Self-exclusion Register) Register Rules 2022 (the “NSER Rules”). An online wagering operator is required to:
It has been reported that almost 10,000 persons have registered with BetStop in its first two months of operation, with a lifetime exclusion period being the most common registration.
Customer identity verification
The NCPF measure for completing customer identity verification has recently been further amended to require that verification be completed prior to the opening of a customer account. This requirement came into effect on 29 September 2023 under requirements of the AML/CTF Laws.
Federal Parliamentary Committee Inquiry Report Into Online Gambling
The Federal Parliamentary Committee Inquiry Report, You win some, you lose more, was issued on 28 June 2023 following a lengthy inquiry into online gambling and its impact on those experiencing gambling harm.
The inquiry considered written submissions lodged by various parties and individuals, and involved public hearings where the Committee interviewed individuals representing gambling regulators, wagering operators and other entities involved in the online gambling eco-system.
The Report contains 31 recommendations. The recommendations propose various regulatory measures for addressing gambling harm. The Australian government is reviewing the Report and its recommendations; it is expected that, if the recommendations are implemented, they will impact significantly on the manner in which licensed online wagering operators conduct business in Australia, especially in relation to the promotion and advertising of their services.
Key recommendations include:
A considerable number of the recommendations are expected to be implemented. Legislative reform to implement the recommendations accepted by the government will likely be introduced in the coming months.
Classification of Social Games and Computer Games
The Federal Government had been reviewing proposed changes to Australia’s classification regime as it applies to computer games and social games. The government announced that, from September 2024, mandatory minimum classification requirements will be introduced for computer games and social games containing gambling-like content.
This reflects unanimous agreement reached between Australia’s states and territories on updated Guidelines for the Classification of Computer Games (the “Guidelines”).
The Guidelines will have the effect that computer games:
The new classification requirements will require game providers to change the manner in which their products are presented, categorised and advertised.
Northern Territory Racing Commission Consultation
On 14 March 2023, the Northern Territory Racing Commission (NTRC) circulated a draft of the Code of Practice to Reduce Gambling Harm to online wagering operators licensed by the NTRC, for their comments.
Following its review of the feedback, on 17 October 2023, a draft Safer Online Wagering Code of Practice was circulated by the NTRC to online wagering operators licensed by the NTRC for their comments. The draft code sets out minimum standards which would need to be implemented to reduce the risk of a person experiencing harm as a result of online wagering. The obligations set out in the draft code include:
The consultation period in respect of this draft Code of Practice closed on 7 November 2023.
Recent Trends
Social gaming
Social gaming updates can be found in 4.3 Recent or Forthcoming Changes.
Esports
Esports regulation in Australia
Sports bookmakers licensed in the Northern Territory are permitted to take bets on certain esports official tournaments and/or competitions. However, some states do not permit betting on esports.
Action taken in Australia
In 2020, Australian police in Victoria conducted an investigation into esports match-fixing in relation to Counter-Strike: Global Offensive. The investigation resulted in five men being charged with match-fixing offences.
In 2022, two Victorian men were charged with match-fixing following an investigation into suspicious betting activity around an esports tournament. The men pleaded guilty and the penalty included repaying their winnings to the online betting operator, as well as an order that both men be subject to 12-month good behaviour bonds.
Esports continues to be an activity that is growing in popularity in Australia, and developments regarding esports betting should be expected with the growth of the esports sector. This was enhanced by the COVID-19 pandemic, during which esports gained more prominence, as events could continue to be provided, and more operators invested in understanding and providing betting on esports.
Fantasy sports
Where recognised as a gambling service, fantasy sports in Australia are usually provided under a sports bookmaker licence in order to be legal, and, as such, are regulated under the same provisions as apply to online betting services.
Skill gaming
The regulatory approach to skill gaming in Australia varies significantly depending on the state or territory in which the offering is made. It is, therefore, important for an operator to review the applicable legislation and the regulator’s policy in each state and territory when considering whether it is legal or permitted to offer skill games.
The different approaches adopted to skill gaming make it difficult for an operator to offer skill games throughout Australia and an in-depth understanding of the regulatory framework is required prior to making skill games available. In some states or territories, online games of skill are prohibited, which may be a reason why operators are hesitant in making their skill games available in Australia.
Blockchain or cryptocurrency
The use of blockchain technology in gambling is not permitted in Australia. Recently, there has been an increasing number of online operators seeking to offer gambling-style services in Australia involving the use of non-fungible tokens (NFTs).
The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 (introduced in September 2023) will, if passed, ban the use of digital currency (including cryptocurrency) in online wagering (see 3.7 Recent or Forthcoming Legislative Changes).
Online gambling is regulated at the federal level in Australia under the IGA. However, in accordance with the principles established in the IGA, Australian states and territories separately regulate online gambling in their respective jurisdictions under the relevant legislation.
Betting
Under the IGA, betting is considered to be an “excluded wagering service”. Accordingly, online betting may be provided legally under the IGA as a “regulated interactive gambling service” when offered by an operator that holds a licence granted by an Australian state or territory.
Bingo
The treatment of online bingo games is unclear under the IGA. The authorities, however, view online bingo as being prohibited under the IGA and as unable to be provided legally to persons present in Australia.
Casinos
The offering of online casinos is prohibited under the IGA and cannot be offered legally to persons physically present in Australia.
Lotteries
Under the IGA, a lottery will be considered an “excluded lottery service” if it is a service for the conducting of a lottery or a service for the supply of lottery tickets.
Accordingly, online lotteries may be conducted legally as a “regulated interactive gambling service” when offered by an operator that holds a licence granted by an Australian state or territory.
Online scratch lotteries and any other online instant lotteries are specifically excluded from the definition of “excluded lottery service” and are, therefore, prohibited under the IGA.
Fantasy Sports
Fantasy sports are treated as a betting activity under Australian law.
Social Gaming
A game constitutes a gambling service if the following three elements are present:
Generally, the prize element and/or consideration element will not be present in a social game. In such circumstances, social games would not constitute a gambling service under the IGA and would not require a licence to be offered.
Classification requirements are being introduced from September 2024 in relation to computer games and social games containing gambling-like content (see 1.1 Current Outlook and Recent Changes).
Poker
Under the IGA, poker is considered a gambling service and is prohibited. It cannot be offered legally online to persons physically present in Australia.
Land-based gambling is regulated at the state and territory level. Unlike online gambling, there is no legislation regulating land-based gambling specifically at the federal level. Each state and territory has specific legislation for the regulation of land-based gambling.
Betting
Land-based betting can be provided on-course by licensed bookmakers in all Australian states and territories. (Some of these bookmakers also provide services online or over the telephone.)
In each state and territory, licensed entities can conduct off-course betting. However, a subsidiary of Tabcorp Holdings Ltd (a company listed on the Australian Securities Exchange) holds the off-course betting licence in all states and territories, except for Western Australia. The licensee is also granted a statutory monopoly to conduct totalisator betting. In Western Australia, the licence is held by a government entity.
Poker
Licensed casinos can conduct land-based poker. Poker may also be played in hotels and clubs, provided that no third party collects a share or percentage from the amounts paid by the players to participate in the poker game.
Bingo
Land-based bingo games are treated differently under the laws of each state and territory. Generally, a licence will not be required if the prize is below a threshold established in the applicable legislation.
Casinos
Casino games are offered in land-based casinos under the licence(s) issued in each state and territory. The games that may be offered under a casino licence are table games (including poker) and gaming machines.
Gaming Machines
Gaming machines that offer slots games – known as poker machines in Australia – are permitted in land-based casinos licensed in each state and territory. Slots are also permitted in clubs and hotels in all states and territories (except Western Australia) under the relevant legislation.
Lotteries
Land-based lotteries can be conducted in Australia under a licence issued by each state and territory. An exclusive licence is granted in each state and territory to conduct a lottery. The Lottery Corporation Limited (a company listed on the Australian Securities Exchange), through its subsidiaries, holds the lottery licence in each state and territory, except for Western Australia. Lottery tickets are available for purchase through newsagents and convenience stores, as well as online.
The following list of Australian gambling legislation at various levels is not exhaustive.
Various rules, guidelines, directions, orders and standards that are issued by the regulator and/or the responsible minister also apply to the gambling sector and must be complied with.
Federal
The following laws apply at the federal level:
New South Wales
The following laws apply in New South Wales:
Queensland
The following laws apply in Queensland:
Victoria
The following laws apply in Victoria:
Northern Territory
The following laws apply in the Northern Territory:
Australian Capital Territory
The following laws apply in the Australian Capital Territory:
South Australia
The following laws apply in South Australia:
Western Australia
The following laws apply in Western Australia:
Tasmania
The following laws apply in Tasmania:
As explained in 2.1 Online, only online gambling is defined at the federal level, under the IGA.
The laws of the Australian states and territories broadly define the term “gambling” to capture land-based and online gambling that has a connection with the relevant state or territory. In some cases, skill-based games are treated as gambling.
It is necessary to refer to the relevant legislation in each state and territory for a definition of land-based gambling. Sources of legislation in various Australian states and territories make reference to an “unlawful game”, rather than specifically define “gambling”.
Section 4 of the IGA defines a “gambling service” as a service:
The key offences vary from one jurisdiction to another. However, generally, key offences comprise the conduct, offering, provision and/or facilitation of unlawful gambling services or prohibited gambling services.
Penalties that apply in respect of the conduct, offering, provision and/or facilitation of the provision of unlawful gambling or prohibited gambling services vary between Australian jurisdictions.
The penalties for a contravention of the IGA are substantial. The following penalties apply under the IGA:
Most of the Australian legislative reform relating to gambling that has occurred in the past year results from the implementation of the final NCPF measures relating to online wagering services. Each state and territory has legislated the necessary amendments to their gambling laws to implement these measures (see 1.1 Current Outlook and Recent Changes).
Victoria
The Gambling Taxation Act 2023 (the “Act”) became law on 6 June 2023. The Act implements stricter casino tax arrangements from 1 July 2023. These tax arrangements will be administered by the Commissioner of State Revenue (the “Commissioner”) under the Taxation Administration Act 1997. The Act aims to extend the Taxation Administration Act 1997 to cover casino taxes payable by the casino operator. (This implements a recommendation in the Report of the 2021 Royal Commission into Crown Melbourne.)
Other key changes introduced by the Act include:
Federal
The main bill tabled in 2023 in the Federal Parliament in relation to gambling is the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 (the “Bill”). This will prohibit the use of credit cards and digital currency (including cryptocurrency) in online wagering services. This ban will not apply to online lotteries. The Bill was tabled by the Federal Government on 13 September 2023 and has passed the House of Representatives. It is being considered by the Senate.
The proposed ban in the Bill relating to the use of credit cards would also prohibit the use of an account, service or facility which allows payment to be made by means of a credit card.
The Bill provides online wagering operators with a six-month transition period to implement the necessary changes for banning the use of credit cards and digital currency. A breach of the ban, by accepting from a customer payment by way of credit card and/or digital currency for wagering online, could result in a fine of AUD234,750.
There are three other bills tabled before the Federal Parliament relating to online gambling and to proposed bans or prohibitions on gambling advertisements. These bills were not tabled by the Federal Government; it is likely that they will not proceed and will be superseded by amendments which the Federal Government may propose in relation to online wagering advertising, following its review of the Federal Parliamentary Committee Inquiry Report recommendations (see 1.1 Current Outlook and Recent Changes).
Queensland
The Casino Control and Other Legislation Amendment Bill 2023 was tabled in Queensland to propose amendments to the Casino Control Act 1982 and other gambling legislation.
In relation to the proposed amendments to the Casino Control Act 1982, the bill proposes the following.
The key regulatory bodies responsible for supervising gambling in Australia are:
The IGA takes a prohibitionist approach regarding the regulation of online gambling in Australia. The IGA is drafted in a manner that prohibits all online gambling in Australia except for those activities that:
Generally, the state and territory regulatory authorities adopt a more prescriptive and interventionist approach in their legislative scheme in order to minimise gambling harm.
The most material changes relate to:
The licences that are issued by states and territories to conduct online or land-based gambling (as defined in the respective state or territory) are generally B2C licences.
A personal licence may be required at the state and territory level. For the installation and repair of gaming machines in the land-based market, for example, gaming machine technician licences may be required.
Companies may also be required to obtain a B2B licence in the land-based market to offer their services – for example:
Permits or approvals must be granted by the regulatory body in most states or territories to operate gaming machines in licensed premises.
Land-based licences relating to casinos, lotteries and betting are not readily available. The licences for these activities are for a long term and may be granted on an exclusive basis. These licences are subject to an onerous and lengthy licensing process and to the payment of substantial licence fees and taxes.
Approvals or permits to provide land-based poker machines in clubs and/or hotels are more readily available; however, there may be restrictions or a cap on the number of poker machines available in the state or territory. The authors note that poker machines in Western Australia are installed only in the casino.
Online licences for sports bookmakers and/or lotteries are more readily available. The Northern Territory is the leading online gambling licensing authority in Australia, and there is no limit on the number of online licences that may be granted by the Northern Territory regulator. An increasing number of New South Wales and Victorian on-course bookmakers have also moved online since early 2020.
Land-Based
The duration of the licences issued for land-based activities vary in each state and territory, but are usually for a long duration. The following examples detail the duration of licences that have been granted.
Online Gambling Licence
The duration of an online gambling licence varies; however, for sports bookmakers licensed in the Northern Territory, it is generally a five-year term.
The basic documentation requirements when applying for either a land-based licence or an online licence are similar; documents are required when applying for a gambling licence irrespective of the type of licence.
Due diligence will be conducted to determine the suitability of the applicant company, its shareholders and directors, and that of the holding companies and ultimate beneficiary owners. Furthermore, the business plan, financial documents and forecasts, technical documentation, and the contribution the gambling business will make to the state or territory will all be assessed in respect of any gambling licence (whether land-based or online).
Further detailed information – for example, details of the premises to be used to offer the gambling services and the impact the operation will have on the state and territory – may also be required in respect of any land-based licence application.
Further documentation may be required in the case of an application for a gambling licence where the gambling service is part of a larger project.
The documents that directors and owners are required to submit include:
The disclosure thresholds for shareholders differ between the states and territories (and the types of gambling licence); generally, the applicable percentage is 10%, but in certain cases it may be 5% or lower.
Land-Based Licence Applications
The timescale for a land-based licence application will vary between the states and territories, and depends on the type of licence for which the application is being made. For example, the current wagering and betting licence in Victoria expires in August 2024; however, the Department of Justice and Community Safety issued an expression of interest in 2021 seeking for prospective applicants for the next licence to be granted upon the expiry of the current licence.
Online Licence Applications
The period that will elapse before the application for an online sports bookmaker licence in the Northern Territory is granted is usually nine months (but may be a shorter or longer period).
Land-Based Licences
The licence application fee for land-based licences depends on the relevant state or territory and on the gambling activity to which the application relates. As explained previously, land-based licences for casinos, lotteries and wagering activities are granted (in the majority of cases) on an exclusive basis; therefore, any fees are usually substantial.
Online Gambling Licences
The application fees applicable in the Northern Territory are:
Land-Based Licences
Fees payable with regard to land-based licences vary depending on:
This varies materially. In New South Wales, for example, a one-off payment of AUD256 million was paid in 1995 for a 12-year exclusivity period for a casino licence, and a further AUD100 million was paid in 2007 for a 12-year extension of the exclusivity period. Meanwhile, in Queensland a quarterly licence fee of AUD276,300 (indexed annually) is payable for a casino licence.
Online Gambling Licences
In the Northern Territory, online sports bookmakers and online gaming licensees pay an annual licence fee of AUD27,000, whereas betting exchange licensees pay an annual licence fee of AUD270,000.
The licensing requirements relating to premises will vary depending on the form of land-based gambling, and on the state or territory.
For casinos, most states and territories will include the location of the casino and any conditions relating to the premises in the casino licence conditions.
Clubs and hotels may, under their respective licences, operate gaming machines; however, the gaming machines must be approved in order for them to be operated in the premises.
The conducting of land-based gambling has been materially affected by the casino inquiries and the legislative amendments introduced as a result of their outcome.
NSW has undergone changes in relation to promoting responsible gambling measures in clubs and hotels (see 7.2 Recent or Forthcoming Changes).
The VGCCC issued numerous fines to Crown (the sole casino operator in Victoria) (see again 7.2 Recent or Forthcoming Changes in relation to responsible gambling penalties). Another fine amounting to AUD20 million (the maximum penalty permitted by law is AUD100 million) was issued to Crown in June 2023 for breaching its casino tax obligations by failing to pay the proper casino tax amounts over an extended period of time. Crown had also paid the outstanding tax.
B2C operators may be licensed in Australia to offer a regulated interactive gambling service (ie, lotteries and betting). A licence that is issued in any state or territory in Australia enables the licensee to provide the licensed services throughout Australia without the requirement of obtaining a licence from any other state or territory.
B2B providers will not generally require a licence to offer their services to Australian operators. The B2B’s systems may, however, be subject to review or approval processes as a condition of the licence granted to the B2C operator that uses their system.
A licensed bookmaker must request the NTRC’s approval for any partnerships entered into where the licensed operator and the other party receive income jointly and carry out business as partners with regard to the licensed activities. Therefore, if the arrangement with an affiliate satisfies these requirements, approval is required from the NTRC.
Generally, white-label providers are not required to be licensed; however, agreements between bookmakers and white-label providers will need to be approved by the NTRC if they meet the requirements set out in 6.3 Affiliates.
Further changes to online wagering have been introduced following the implementation of the NCPF measures (see 1.1 Current Outlook and Recent Changes).
Following the Federal Government’s review of the Federal Parliamentary Committee Inquiry Report entitled You win some, you lose more, amendments are likely to implement recommendations in the report (see again 1.1 Current Outlook and Recent Changes).
A bill banning the use of credit cards and digital currency (including cryptocurrency) in online wagering services has been tabled in the Federal Parliament (see 3.7 Recent or Forthcoming Legislative Changes).
Amendments to the classification of social games and computer games containing gambling-like content will be introduced from September 2024 (see again 1.1 Current Outlook and Recent Changes).
Australian ISPs are required to block illegal offshore gambling websites notified by the ACMA.
The ACMA has been active in using this measure. Since its implementation in November 2019, the ACMA has requested that more than 835 websites (including of affiliates) be blocked. A list of all these websites is available on the ACMA’s website.
Responsible gambling requirements that apply to land-based gambling operators vary depending on the type of licence held by the operator, and on the state and/or territory in which the operator is licensed.
Generally, a gambling service provider will be required to display certain responsible gambling messages and warnings in designated areas, and to provide customers with:
In South Australia, there is a requirement that venues operating more than 30 gaming machines must have facial recognition technology to identify problem gamblers.
For online gambling, each state and territory has separate requirements; however, there has been harmonisation of the requirements for online wagering operators through the implemented NCPF measures (see 1.1 Current Outlook and Recent Changes). Further details regarding other responsible gambling measures are referred to in 7.2 Recent or Forthcoming Changes.
The NCPF has been the catalyst for the introduction of various responsible gambling measures affecting the wagering sector during the past five years. There have been various developments in the final implementation of the remaining NCPF measures (see 1.1 Current Outlook and Recent Changes).
In New South Wales (NSW), a trial remains ongoing in clubs in which customers are allowed to use cashless methods to play on gaming machines. The technology being trialled connects the gaming machine to a customer’s mobile phone, from which the customers access their digital wallet to transfer money for their game play. The customers may also make use of responsible gambling tools that allow them to:
This trial is intended to promote responsible gambling and minimise the risk of money laundering. Further initiatives in NSW include:
Initiatives have been announced by the Victorian government. These include:
In September 2023, the VGCCC brought charges against Tabcorp and eight venues for allegedly allowing a minor to gamble in breach of Victorian gambling law.
The charges brought against Tabcorp include:
The venue operators have been charged with:
Tabcorp faces a possible fine of close to AUD700,000, and the venues collectively face a maximum fine in excess of AUD1 million.
The VGCCC has issued two fines to Crown in the past year in relation to responsible gambling contraventions. The fines were:
The VGCCC also issued a formal direction to Crown in May 2023 to implement new harm-minimisation and AML measures. The direction requires that, by December 2023, Crown implement:
The tools available to players for managing their gambling activities are referred to in 7.1 RG Requirements.
The key AML legislation in Australia is the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (the “AML/CTF Act”). This is supplemented by the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No 1) (the “AML/CTF Rules”), which provides further detail in relation to specific requirements under the AML/CTF Act.
There have been recent amendments to the AML/CTF Rules, and a consultation process is ongoing in relation to reviewing the AML/CTF Laws (see 8.2 Recent or Forthcoming Changes).
Following changes to Australia’s AML/CTF Laws, which came into effect on 29 September 2023, online wagering operators are required to verify a new customer prior to providing a designated service.
This requires online wagering operators to conduct customer identity verification prior to opening an account for a new customer.
A temporary exception to this requirement exists until 28 September 2024, which permits online wagering operators to open an online wagering account for a new customer prior to completing the customer identification verification. An online wagering operator may apply this exception only if the conditions set out in the AML/CTF Rules are satisfied and subject to no other designated services being provided, including deposit of funds or wagering services.
From 29 September 2024, this exception will be repealed and online wagering operators will be required to complete customer identification verification prior to a wagering account being opened.
The AML/CTF Act was amended to allow for parties to rely on know-your-customer (KYC) checks conducted by third parties on the basis that such checks abide by the requirements present under the AML/CTF regime. This also applies to KYC procedures conducted by external jurisdictions if the procedure meets all the requirements prescribed under the AML/CTF Rules.
Consultation commenced on 20 April 2023 regarding modernising Australia’s AML/CTF regime. The purpose of the consultation is to consider what needs to be addressed and implemented to modernise and simplify Australia’s AML/CTF regime in order to meet the current challenges and requirements, and to introduce the Tranche 2 requirements (which relate to non-financial businesses such as real estate agents and professional services – eg, accountants and lawyers). The consultation is ongoing.
The trial using cashless methods to play on gaming machines in clubs in NSW (see 7.2 Recent or Forthcoming Changes), if implemented, is intended to reduce the risk of money laundering arising from the use of gaming machines in clubs and hotels.
Gambling (excluding the provision of a lottery) is considered a “designated service” under the AML/CTF Act, which means that licensed operators are considered “reporting entities”. As such, they are subject to obligations under the AML/CTF Laws, including:
AUSTRAC concluded a civil penalty action before the Federal Court of Australia against Crown Casino, resulting in a fine of AUD450 million for breaches of its obligations under the AML/CTF Laws, and as a result of certain practices of Crown as investigated by the NSW Inquiry, the Victorian Royal Commission and the Western Australian Royal Commission. AUSTRAC also commenced proceedings before the Federal Court of Australia against The Star on 30 November 2022, and against SkyCity Adelaide on 7 December 2022. Both proceedings are still ongoing.
For further details relating to the proceedings, see 1.1 Current Outlook and Recent Changes.
The relevant regulatory and supervisory agencies in respect of gambling advertising include:
Land-Based Gambling Advertisements
Land-based gambling advertisements are regulated under the relevant state and territory laws. The definition of advertising in the respective legislation in the states and territories also captures online gambling advertisements.
In New South Wales, a “gambling advertisement” is defined in the Betting and Racing Act 1998 (New South Wales) (the “Betting and Racing Act”) as meaning an advertisement that gives publicity to ‒ or otherwise promotes or is intended to promote – participation in gambling activities. Other state and territory statutes provide similar definitions of “gambling advertisement”.
Online Gambling Advertisements
The IGA prohibits “designated interactive gambling service advertisements”. This is defined as any writing, still or moving picture, sign, symbol or other visual image, or audible message (or any combination of two or more of these things) that either gives publicity to or is intended to promote:
This prohibition generally applies to the advertising of gambling services that are prohibited or unlicensed, or of offshore gambling operators.
The key legal and regulatory provisions with regard to advertising vary depending on the type of gambling services being provided, and on the state or territory in which they are provided. There are no licensing provisions in respect of advertising.
Gambling operators’ advertising is also subject to federal laws, including:
Land-Based Gambling
Land-based gambling advertisements are generally permitted in Australia. However, there are strict restrictions with regard to what can be included in an advertisement and when advertising is permitted.
As outlined in 9.2 Definition of Advertising, the advertising of gambling services is regulated at the state and territory level and the requirements vary from one jurisdiction to another. There are also industry codes of practice that outline the manner in which gambling services can be advertised on various media platforms.
Generally, gambling advertising will be prohibited or considered unlawful if, among other things, the advertisement:
Further advertising restrictions are imposed on wagering operators in respect of, among others:
Land-based operators are also required to display responsible gambling messages. However, the requirements around the display of such messages vary significantly from one jurisdiction to another.
Online Gambling
The above-mentioned restrictions also apply to online gambling operators. However, further advertising restrictions are imposed on online wagering operators by means of the NCPF, particularly through the consistent gambling messaging requirements (refer to 1.1 Current Outlook and Recent Changes).
South Australia has a new Authorised Betting Operations Gambling Code of Practice and Gambling Administration Guidelines. They apply to all South Australian licensed bookmakers and registered interstate betting operators. They contain a broader range of requirements relating to inducements and the manner in which they can be advertised. Operators are also required to keep a copy of their advertising material for 12 months following the conclusion of the campaign.
The sanctions and penalties that apply with regard to breaches of advertising restrictions vary significantly depending on the laws of the relevant jurisdiction and on the nature of the contravention.
In New South Wales (NSW), for example, the maximum penalty prescribed for an online betting operator that publishes a gambling advertisement in contravention of the Betting and Racing Act is AUD31,300 for an individual and AUD313,000 for a corporation.
At the federal level, contraventions of the provisions relating to advertising in the IGA may result in fines of up to AUD56,340 for an individual and AUD281,700 for a corporation.
A penalty notice scheme was introduced in NSW enabling the LGNSW to issue a criminal penalty notice, which requires the payment of a fine if a breach occurs. This differs from the previous scheme under which penalties would only be imposed by the regulator through action in court proceedings. A similar scheme was introduced in Victoria. This supplements the procedure under which penalties were only imposed by the regulator through action in court proceedings.
On 14 April 2023, the LGNSW announced that wagering operator Betr had been fined AUD210,000 in relation to odds offers offered and advertised during major sporting and racing events in October 2022, in breach of the NSW gambling law prohibitions on the advertising of inducements to participate in gambling activity, including inducements to open a betting account. The fine against Betr was the first time that the LGNSW’s power to issue a penalty notice had been used.
In May 2023, Betchoice (trading as Unibet) was fined AUD60,000 by a Sydney Court for promotions which contained inducements to participate in gambling activity and to open a betting account in breach of NSW gambling law.
In April 2023, the ACMA announced that it had issued a formal warning to Streamotion Pty Ltd (the operator of Kayo Sports service – a sports streaming provider) in relation to the display of gambling advertisements during live sporting events.
The implementation of nationally consistent changes to gambling messaging as part of the NCPF was introduced on 30 March 2023 (see 1.1 Current Outlook and Recent Changes). Further amendments may be introduced following the Federal Government’s review of the recommendations contained in the Federal Parliamentary Committee Inquiry Report on online gambling (see again 1.1 Current Outlook and Recent Changes).
The disclosure requirements for acquisitions of an interest and/or a change of control in respect of a gambling operator vary from one jurisdiction to another. Accordingly, it is necessary to refer to the provisions of the relevant legislation in the state or territory in which the relevant entity holds a licence.
Land-based casino licences cannot be transferred. Another company may, however, acquire shares in the licensee. In this scenario, if the share sale exceeds a certain threshold (usually 5% or 10% of the issued shares), the purchaser will need to notify and obtain approval from the relevant regulator. In New South Wales, for example, the purchaser must disclose all information required for the regulator to investigate the suitability of the purchaser.
Online lottery and wagering licences cannot be transferred. Another company may, however, acquire shares in the licensee. If the transfer of shares exceeds a certain threshold (usually 5% or 10% of the issued shares), the purchaser will need to notify and obtain regulatory approval in the relevant jurisdiction. The licensee and the purchaser in any transfer of shares that exceeds the threshold (eg, 10%) must disclose the information that the regulator needs to consider whether approval should be granted for the transfer of shares in the licensed company.
Generally, an acquisition of shares (directly or indirectly) that exceeds 5% or 10% of the issued shares in the licensee will trigger change-of-interest provisions that require the notification or approval of the purchaser and associated persons.
Passive investors will not usually be excluded from the requirements relating to change of control if they exceed the percentage threshold.
The ACMA has broad investigative and enforcement powers under the IGA, including powers for:
The regulatory bodies’ enforcement powers vary between the states and territories. In general, state and territory regulators also have broad investigatory and enforcement powers, and can:
Regulators are vigilant about ensuring that operators comply with the applicable laws, and will proceed to take enforcement action when required.
When considering whether to impose sanctions (eg, suspending or revoking a licence, or varying licence conditions), regulators will consider the administrative and legislative tools that they have at their disposal for implementing and enforcing these sanctions.
All state-based regulators have the authority to undertake enforcement action against wagering operators. The New South Wales (NSW) regulator, Liquor & Gaming NSW, is the most active regulator when it comes to taking enforcement action regarding advertising breaches. When determining the penalty, a court will take into consideration various factors, such as:
A separate penalty may be imposed for each separate publication and, therefore, a separate breach. Recently, amendments have been made to the relevant statute to permit Liquor & Gaming NSW to issue fines in respect of advertising breaches.
Penalties for an advertising breach under the IGA are imposed following civil or criminal court proceedings, and the amount of the penalty is determined by the court in accordance with the amount of the penalty under the relevant provision of the IGA.
Following the various casino inquiries that found that each of the relevant casinos acted in an inappropriate manner, amendments have been made to relevant legislation to provide for a substantial increase in penalties. Fines of up to AUD100 million may now be imposed (and have been).
Fines have been issued in NSW for breaches of advertising prohibitions (see 9.5 Sanctions/Penalties).
Both the federal and state regimes allow for criminal and civil penalties to be enforced against individuals for relevant breaches.
On a federal level, the IGA provides that the body corporate and/or a director, employee or agent of the body corporate may be liable for any conduct engaged in on behalf of the body corporate. Therefore, both the company and individuals may be liable for a breach of the IGA.
At the state/territory level, all states and territories have provisions in the gambling law and/or in the criminal law that allow for executive officers and senior management to be considered in contravention of the same provision as that contravened by the body corporate. On this basis, they can be held liable for the contravention and be subject to appropriate civil and criminal penalties.
Land-Based Gambling
The rate of gambling tax payable by operators varies depending on the state and/or territory in which the operator is licensed, and on the type of land-based gambling activity being provided. For an indication of the tax rates, reference is made to the following examples.
Casino tax
New South Wales
The Star Entertainment Group (“The Star”) and the New South Wales (NSW) government reached an updated agreement regarding gaming taxes applicable on gaming machines. The updated agreement, which amends the agreement with the previous NSW government, will result in a gradual tax increase. The applicable tax is:
From 1 July 2030, the below tiered tax rate will apply:
This updated agreement includes obligations on The Star:
Lotteries tax
Queensland
Under the Lotteries Regulation 2007 (Queensland), the lottery tax payable is 73.48% of the lottery operator’s gross monthly revenue minus the lower of:
Victoria
The following applies in Victoria.
Wagering tax
New South Wales
Under the Betting Tax Act 2001 No 43 (New South Wales), the tax payable in respect of totalisator on-course and off-course betting from 1 July 2022 is 3.49% of totalisator commissions on fixed-odds racing.
Race-fields fees
The applicable rates vary between each state and territory. Certain states and territories have established a fixed rate for the applicable fees; however, in other states and territories the applicable rates vary depending on the category of race on which bets are taken.
Online Gambling
The gambling tax that is applicable in the Northern Territory is as follows.
An online betting operator, irrespective of the jurisdiction in which it is licensed, will also be subject to a point-of-consumption tax. This is charged based on net wagering revenue in the following states and territories (subject to certain thresholds being achieved):
All the above taxes are calculated in a slightly different manner. Further enquiries should be made to obtain details of the calculations.
Several reforms are anticipated in the coming months.
These reforms are outlined in different sections of this chapter (see 3.7 Recent or Forthcoming Legislative Changes, etc).
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gambling@addisons.com www.addisons.comStatus of Gambling Licence Processes for Wagering
Victoria
After numerous delays, the Department of Justice and Community Service restarted the process for the Victorian Wagering and Betting Licence in June 2022. The Department requested expressions of interest from suitable companies who wished to be invited to apply for the licence. In April 2023, the Minister for Casino, Gaming and Liquor Regulation formally invited select respondents to apply for the Licence. The invitation period closed on 15 June 2023. At the time of writing, a decision regarding successful applicants has yet to be announced.
Of particular interest is the possibility of a multiple wagering and betting licence operating environment in the State, which to date has operated with an exclusive sole licensee model. It has been reported, but remains to be confirmed, that the licence could be shared by as many as three operators.
Western Australia
After a number of unsuccessful prior attempts, media reports at the time of writing suggest that a privatisation transaction involving the WA TAB, the last remaining government-owned “totalisator agency board”, may be back on the table.
Suggestions are that a model for the WA TAB is being explored which involves a similar strategic partnership approach to that recently adopted in New Zealand. Those arrangements, which the Entain group were successful in securing, commenced on 1 June 2023 and involve a 25-year partnership between Entain and the government-owned TAB NZ to provide access to the regulated New Zealand market. The arrangements involve a 50/50 share of gross profits and a minimum annual commitment of NZD150 million in the first five years of the partnership. Entain will also advance additional consideration of NZD100 million if legislation is passed requiring the geo-blocking of overseas betting sites.
Status of Casino Licence Reviews
The casino sector remains under particular regulatory scrutiny given revelations of alleged and established systemic governance and compliance failures.
Over recent times, the licence holders in Victoria, New South Wales (NSW), Queensland, Western Australia and South Australia have all been subject to reviews and to suitability assessments following high-profile revelations of money laundering, responsible gambling and other issues. Various inquiries and Royal Commissions have examined allegations of criminality by patrons, non-compliance with anti-money laundering and counter-terrorism financing (AML/CTF) requirements, and responsible gambling shortcomings, among other serious issues involving operator misconduct.
The Star (Sydney)
Following the Bell review into the Star Casino Sydney (handed down in August 2022), The Star was declared unsuitable to hold a casino licence in New South Wales. Its licence was suspended and a manager was appointed to enable the casino to remain operational during the licence suspension period. The NSW Independent Casino Commission also levied a maximum AUD100 million fine on the company. At the time of writing, the Star Sydney remains under supervision. The company provided an update to the market on 29 August 2023 regarding its progress on key remediation activities over the previous 12 months. These included the preparation of a draft remediation plan, which included approximately 550 milestones over a multi-year period highlighting the scale of its reform efforts.
In August 2023, the NSW government also advised that 22 of the 30 recommendations for the casino regulator arising from the Bell Report had been implemented. It was noted that the balance of the recommendations involve complex workstreams which require longer timeframes to allow for effective implementation and monitoring.
The Star (Queensland)
Similarly, The Star was found unsuitable to hold a licence in Queensland and has also had an independent manager appointed to monitor its operations. The same special manager that was appointed in NSW was also appointed in Queensland, meaning the operations are being assessed across two jurisdictions. After legislative changes last year (raising the maximum penalty that can be imposed on a casino to AUD100 million), The Star was also fined the (new) maximum penalty in Queensland for regulatory indiscretions. If The Star does not make satisfactory progress towards rectifying the issues identified in its Queensland review, it may face a 90-day suspension as of 1 December 2023.
SkyCity Adelaide
Following the inquiries in other states, the South Australian regulator announced in July 2022 that an independent review would also be undertaken into SkyCity, being the operator of the Adelaide casino. However, SkyCity is subject to separate Federal Court proceedings brought by AUSTRAC, alleging serious non-compliance with AML/CTF laws. This has prompted the South Australian regulator to put the review on hold pending the outcome of the AUSTRAC proceedings. The Liquor and Gambling Commissioner has advised that it is not possible to reliably determine the question of (licence) suitability until a resolution of the AUSTRAC proceedings.
In the meantime, on 29 May 2023, the commissioner directed SkyCity Adelaide to establish a comprehensive programme of work to ensure it is meeting its AML/CTF and gambling harm minimisation obligations. An independent monitor with industry expertise has also been appointed to monitor the compliance of SkyCity Adelaide.
Victoria
Following the Royal Commission into the Casino Operator and Licence, a special manager was also appointed to oversee Crown Melbourne’s operations. The special manager continues to monitor the operations of the casino and has extensive powers, rights and privileges. The special manager is required to provide regular reports on Crown Melbourne’s reform work to the Victorian Gambling and Casino Control Commission (VGCCC) and the Minister for Casino, Gaming and Liquor Regulation, on matters relevant to Crown’s suitability. In January 2024, the special manager will submit a final report to the VGCCC and the Minister. The final report will evaluate Crown’s reform efforts, to assist the VGCCC in determining whether Crown Melbourne has returned to suitability to hold the Melbourne casino licence.
Money Laundering and Corporate Regulator Activity in the Casino Sector
In July 2023, the Federal Court of Australia approved a settlement between AUSTRAC and members of the Crown Resorts group, including a civil penalty of AUD450 million (payable in three instalments), based on breaches of AML/CTF laws at its Melbourne and Perth casino properties. Crown was also ordered to pay AUSTRAC’s costs.
Crown admitted as part of the settlement that it had breached the AML/CTF Act, including that Crown Melbourne’s and Crown Perth’s AML/CTF programmes were not based on appropriate risk assessments and that the entities did not have appropriate systems and controls for managing their risks. It was also accepted that the AML/CTF programmes were not subject to appropriate oversight by the Crown boards and senior management, including that Part A of its AML/CTF programme had not been approved as required and that reporting to the Crown boards and senior management was ad hoc and incomplete.
Among other matters, the proceedings highlight the increasing regulatory focus on governance matters and the importance of board and senior management understanding and engagement with the risks an organisation faces, including non-financial risks. They provide a useful guide regarding regulatory expectations to ensure that risks are understood, reported, discussed and assessed with regularity and clarity. These should be assessed across an organisation’s lines of business with particular attention being paid to those presenting elevated financial crime risk. For Crown, its junket operations, international VIP customers and dealings with politically exposed persons were determined to have presented a high-risk profile which should have warranted greater levels of enhanced customer due diligence, monitoring and operational controls.
As mentioned above, AUSTRAC have also commenced civil proceedings against the Adelaide casino operator, SkyCity, for alleged systemic non-compliance with AML/CTF laws. While these proceedings remain ongoing, SkyCity has set aside AUD45 million to cover a potential civil penalty flowing from the proceedings. The size of any penalty to be sought by the Australian Securities and Investments Commission (ASIC) remains uncertain at the time of writing. SkyCity is alleged to have failed to carry out the required due diligence on 124 customers. While it would appear unlikely that such a fine would be imposed, those breaches could give rise to a maximum penalty of over AUD2 billion.
Similarly, AUSTRAC has launched Federal Court proceedings against The Star group (both Sydney and Queensland) for alleged serious and systemic non-compliance with AML/CTF laws, particularly in relation to the implementation of adequate systems to monitor money laundering. Among other things, it is alleged that The Star board failed to build appropriate capabilities and to invest in automated solutions. The failures allegedly allowed high-risk customers (junkets and international VIPs) to move money in non-transparent ways with minimal due diligence, which exposed Star Sydney and Star Queensland to being exploited by organised crime.
In December 2022, ASIC also commenced civil penalty proceedings against 11 current and former directors and officers of The Star group for alleged breaches of their duties under the Corporations Act. It is alleged that (among other things) The Star’s board and executives failed to give sufficient focus to the risk of money laundering and criminal associations which are inherent in the operations of a large casino with international customers. ASIC has also alleged that board members did not take steps to make further inquiries of management about money laundering risks affecting the organisation that were presented to it. It is further alleged that particular executives breached their duties both by not adequately addressing money laundering risks with high-profile junket operators despite becoming aware of reports of criminal links, and by failing to appropriately escalate money laundering issues to the board.
ASIC are seeking financial penalties and disqualification orders. Defences to the charges have been filed.
“You Win Some, You Lose More” Inquiry
In June 2023, the House of Representatives Standing Committee on Social Policy and Legal Affairs released its report following an inquiry into online gambling and its impacts on those experiencing gambling harm.
The Committee reviewed 161 submissions and conducted 13 public hearings involving multiple individuals and organisations, including:
The Committee handed down 31 recommendations for addressing risks associated with online gambling. The recommendations included, but were not limited to:
The four phases proposed in relation to the advertising ban include the following.
At the time of writing, the Federal Government has indicated that a meeting of state, territory and Commonwealth ministers responsible for online wagering nationally will be held before the end of 2023. Any reforms have the potential to be impactful on a range of stakeholders – including WSPs, consumers, broadcasters and publishers, racing industry and sporting codes – and the report has accordingly attracted significant attention from participants in the sector.
Legislation to Ban Use of Credit Cards for Gambling and Digital Currencies
In November 2021, the Parliamentary Joint Committee on Corporations and Financial Services made a number of recommendations calling for a ban on credit cards (including digital wallets) in online gambling.
Among concerns regarding consumer welfare, credit card use is also currently prohibited for gambling in hotels, clubs, casinos and TAB outlets, creating a perceived disjoint in the online space against these other forms of gambling.
The Federal Government has tabled the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 (the “Bill”), which proposes to amend the Interactive Gambling Act 2001 (the “Act”) by banning the use of credit cards and credit-related products in the online space.
In short, the Bill proposes to:
A six-month transitional period will apply to allow the industry time to change business practices and for consumers to adapt their betting behaviour. Further, the Bill will be up for review after two years to ensure its ongoing effectiveness. The Bill does not extend to lotteries, including the activities of not-for-profits, charities and newsagents.
Cashless Gaming – Commencing From December 2023
A move towards mandatory cashless gaming has gathered considerable momentum during 2023, and is expected to continue into 2024 with a number of Australian states having now announced the introduction of mandatory pre-commitment and carded play on electronic gaming machines (EGMs).
In Victoria, for example, Crown Melbourne is required to implement mandatory pre-commitment limits and carded play for EGMs by December 2023, meaning that all EGM play at the casino will be linked to a patron’s identity. Further reforms have subsequently been announced in relation to EGMs at licensed venues across the state, which will also require mandatory pre-commitment limits and carded play to be implemented, along with “load up limits”, which will cap how much an individual can put into an EGM at a time (ie, AUD100, down from AUD1,000). In addition, mandatory closure periods will be enforced for all gaming machine areas in a venue, excluding Crown Melbourne, between 4am and 10am by mid-2024.
Such reforms have been slower in Australia’s most populous state, NSW, where cashless gaming will be mandatory at The Star in Sydney by 30 August 2024, and trials of cashless gaming technology in licensed venues are underway. The government’s response to community concerns regarding the impact of gaming was a headline issue during State elections earlier in 2023. The trials have a stated objective of assessing the impact of such technology in terms of:
Further, there will be a consideration of the infrastructure and cost requirements for NSW clubs and hotels in relation to any rollout of these cashless gaming technologies.
An independent panel on gaming reform has been established to, among other things, provide advice on this trial process and to inform a gaming reform implementation roadmap by November 2024.
Cashless gaming has also been announced for introduction in Tasmania in 2024.
National Consumer Protection Framework
In November 2018, all state and territory gaming ministers agreed to a National Consumer Protection Framework (NCPF) for online wagering, which has since been progressively implemented with the objective of having a nationally consistent approach to harm minimisation measures, including:
Betstop, which commenced operations in August 2023 following extensive implementation delays, is regulated by the Australian Communications and Media Authority (ACMA) and allows consumers to exclude themselves from all online and phone-betting operators.
Other NCPF developments during 2023 included the commencement of consistent responsible gambling messaging requirements, with effect from 30 March 2023. The regime includes specific messaging requirements for different channels of advertising and communication to customers. In most circumstances, online wagering providers must include both a prescribed “tagline” and a “call to action”, while rotating the taglines evenly throughout a 12-month period.
Additionally, new requirements have recently been announced which, from 29 September 2024, will require a wagering operator to verify a customer’s identify before creating an online gambling account. Interim arrangements are in effect until that date to enable operators to undertake system development work, but which prohibit the provision of designated services (ie, the making of bets and the deposit or withdrawal of funds) until such time as the applicant’s identity has been verified.
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