Meta Title: NT Gambling Bill Hit With Controversy
Meta Description: It has been revealed that the Northern Territory government consulted only one harm reduction organization before the new laws were proposed.
Controversy has erupted following revelations that the Northern Territory government, tasked with overseeing Australia’s $50 billion online wagering industry, consulted with only one harm reduction organization before enacting new laws. This development comes on the heels of the introduction of the Racing and Wagering Act 2024, which was presented last month and is potentially slated for a vote in the coming weeks.
The proposed legislation bestows upon the chief minister the authority to direct the NT gambling regulator and its director in carrying out their responsibilities. Initially, the government contemplated raising the maximum fines to 10,000 penalty units, equating to approximately $1.75 million, before opting to reduce the cap by 75% to around $445,000 in the proposed bill.
The government requested input on its proposed legislation from all 28 online betting firms authorized in the NT, among them global heavyweights Bet365 and Sportsbet.
However, individuals or entities outside the NT, such as regulators, scholars in gambling studies, academic experts, rehabilitation facilities, or financial advisors, were not consulted. The majority of online betting organizations have obtained their licenses in the NT, attracted by traditionally lower taxation, yet they function across the country. Such operators include, but are not limited to ones offering players ‘win real money’ no deposit bonuses like the ones featured on AussieBonuses.com. Oversight of their activities is conducted by six officials from the NT racing commission.
Ongoing Criticism
The Alliance for Gambling Reform has criticized the NT government’s closed consultation process, asserting that the territory is ill-prepared and hindering efforts to establish a national regulator, as recommended by a federal parliamentary inquiry.
The government has stated that the legislation aims to harmonize maximum fines with those of other jurisdictions. Critics of gambling have long contended that the fines were insufficient to exert significant regulatory influence.
Initially proposed as a starting point, a figure of 10,000 penalty units was suggested, partly acknowledging the scale of the online wagering industry. However, the maximum was later reduced to 2,500 penalty units to align with other regulatory bodies, following advice from the Department of the Attorney General and Justice.
Federal Review
The federal review proposed transferring the regulation of all gambling activities across Australia from states and territories to the Commonwealth. Additionally, it suggested prohibiting inducements similar to those allowed in the NT, and gradually phasing out online gambling advertising and sponsorship. The report, published last June, shed light on ongoing concerns regarding the industry’s influence over the NT’s regulatory process, highlighting its leniency in overseeing WSPs.
Prime Minister Anthony Albanese mentioned that he was examining the review and highlighted measures already in place, including stricter regulations on advertising, with a gradual ban to be implemented supposedly by 2026. Whether these recommendations will be implemented remains to be seen, but it is crucial to acknowledge that advertising is now more complex and global than ever before.
Moreover, revisions to the Interactive Gambling Act 2001 were approved to bring online wagering regulations more in line with those governing land-based gambling. This means that the use of credit cards, credit-related products, and digital currency will be prohibited following a six-month transition period. Companies that do not adhere to it may face fines of up to AU$ 234,750.
Feedback
While the government exclusively sought feedback from one gambling support group, Amity Services, they also sought input on the bill from various other stakeholders. These included the NT civil and administrative tribunal, lawyers representing the gambling industry, the Racing Appeals Tribunal, as well as other government agencies.
Despite the documented evidence of harm caused by the online gambling industry in a national inquiry, the government declined to explain why it didn’t hold an open consultation process and why only one local counselling service was consulted.
Carol Bennett, the chief executive of the Alliance for Gambling Reform, found the timing of the bill interesting, especially with the expected response from the Albanese government to the federal inquiry’s recommendations within weeks.