Insight
COVID-19 UPDATE - ASIA Australia
Recent statistics show that consumer spending by category in pubs and clubs (which would include those operating poker machines) is down 32 per cent compared to a normal week. By comparison, for the same period online gambling is up 95 per cent compared to a normal week. The weekly figures for online gambling (compared to a normal week) from July 19 to August 9 were up 245 per cent, 211 per cent, 174 per cent, and 195 per cent respectively.
state of the Australian economy and the impact of government interventions.
Recent statistics show that consumer spending by category in pubs and clubs (which would include those operating poker machines) is down 32 per cent compared to a normal week. By comparison, for the same period online gambling is up 95 per cent compared to a normal week. Te weekly figures for online gambling (compared to a normal week) from July 19 to August 9 were up 245 per cent, 211 per cent, 174 per cent, and 195 per cent respectively.
INTERACTIVE GAMBLING ACT 2001
Te Commonwealth Interactive Gambling Act (IGA) was introduced in 2001 to protect the Australian public from online gambling, with a focus on harm minimisation and general consumer protection. Included in the current prohibitions is online casino style games, which includes (amongst others) slots, poker, blackjack and roulette.
In recent years there has been an explosion in illegal online casino gaming sites accessible in Australia, with unscrupulous offshore operators illegally targeting Australian residents. Often these sites refuse to pay player winnings, unexpectedly close down their sites or continue to withdraw funds from customer’s bank accounts after the customer ceases to use the site.
P64 NEWSWIRE / INTERACTIVE / MARKET DATA
Te difficulty with these measures is akin to ‘whack- a-mole’ in that as soon as a site is blocked it often re-surfaces under another name and domain, which is not blocked, and the situation continues. Te actual size of this illegal market in Australia and the migration of patrons from venues to these sites during the Covid-19 lockdowns is difficult to determine, however recent statistics pointing to the sharp rise in legal online gambling during Covid-19 would suggest that it could be sizeable.
In addition, on June 10 2020, Andrew Wilkie, MP, tabled a Private Members Bill in the Australian Federal Parliament proposing amendments to the IGA, which seek to ban online ‘social’ casino games. Te Explanatory Memorandum to the Bill states that online social games are particularly problematic
Te Australia regulator responsible for enforcing the IGA, the Australian Communications and Media Authority (ACMA), has recently been ordering internet service providers to block illegal sites, with blocking having commenced in November 2019.
In May, 2020 ACMA announced that 10 overseas casino sites had been blocked following a string of complaints from consumers and noted that more than 100 illegal services (which includes online casinos) have been pulled out of the Australian market since ACMA started enforcing new illegal offshore gambling rules in 2017.
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