INTERACTIVE GAMBLING

Tom Dale

General Manager, Regulatory

NATIONAL OFFICE FOR THE INFORMATION ECONOMY

25 May 2001

KEY ISSUES

• Policy : What is the Government trying to achieve?

• Law : How is it trying to achieve it?

• Technology : Interaction with policy and law.

POLICY OBJECTIVES

• Address a potential area of problem gambling before it starts by curtailing opportunities for it to grow.

• Moratorium on new Australian services from 18.5.2000 to 18.5.2001.

• NOIE report on feasibility & consequences of a ban on interactive gambling.

INTERNET GAMBLING

• 1,400 sites (100% increase in past 12 months).

• Revenue estimates:

2001 $US2.5 b

2002 $US3.5 b

2003 $US5.0 b

STATE OF PLAY

• Moratorium expired 18 May 2001.

• Interactive Gambling Bill 2001

- Senate Committee scheduled to report by 23 May

- debate sooner rather than later.

• Offline gambling issues being separately addressed by Commonwealth / States.

INTERACTIVE GAMBLING BILL 2001

• Prohibits Australian-based interactive gambling services from being provided to customers in Australia.

• Establishes complaints regime for Internet gambling services : focus is services hosted outside Australia.

MAIN OFFENCE CREATED

Cl. 15 A person is guilty of an offence if

(a) the person intentionally provides an Australian-based interactive gambling service; and

(b) the service has an Australian customer link.

WHAT SORT OF GAMBLING SERVICES?

• Placing, making, receiving or accepting bets

• Introducing gamblers to providers

• Lotteries & lottery tickets

• A game of chance or of mixed chance and skill played for something of value and for consideration

NOT AFFECTED

• Contracts that, under Corporations Law, are exempt from a law relating to gaming or wagering.

- options and futures contracts

- online share trading.

• “Linked jackpot” gaming machines.

• TV game shows!

AUSTRALIAN-BASED INTERACTIVE G.S.’s

• Provided in the course of carrying on a business; and

• Provided to customers using

- Internet or other listed carriage service

- broadcasting or datacasting service

- any other content service; and

• Has an Australian-provider link.

AUSTRALIAN-PROVIDER LINK

• Carrying on a business in Australia; or

• Central management & control is in Australia; or

• Provided through an agent in Australia; or

• Relevant Internet content is hosted in Australia.

AUSTRALIAN CUSTOMER-LINK

• If, and only if, any or all of the customers of the service are physically present in Australia.

OTHER LEGAL ISSUES

• Constitutional heads of power.

• Claims for compensation

- Constitutional issues : is any property being “acquired”?

- broader dimension : a “moral claim”?

Technology Issues

TECHNOLOGY ASPECTS

• Blocking / filtering technologies

- none 100% effective

- all affect Internet performance

- mandatory vs voluntary.

• Overseas sites

- the online content regime as a model.