Australia Internet Casinos will Flourish, despite Politics

Australia gamblers have been getting their wager on through interactive websites for the last two decades. Laws were passed in 2001 to curb such activities, but they weren’t effective or even enforceable. Now Australia internet casinos are facing stricter regulation, but I don’t believe it will stop offshore operators from accepting Aussies.

Theoretically, the Interactive Gaming Act of 2001 was meant to prohibit online casinos from accepting Australians. The text was not well thought out. Officials rushed the legislation, and the end result was a document that called it illegal, without setting up any offices to monitor it, or imposing any enforceable penalties against those who violated the law.

It certainly looks like that’s about to change. The new government is pushing hard for gambling reform, and has introduced a heavily-supported amendment to the Act that will include all of those elements that were missing 16 years ago, and then some.

The new Interactive Gaming Act Amendment Bill will serve numerous purposes, including (but not limited to):

• Require internet gambling sites to apply for a licence to access Australian market

• Require authorized operators to comply with Australia law (no casino or poker)

• Create government office to monitor illegal Australia internet casinos

• Create enforceable penalties to be levied against unauthorized operators who continue to accept Australia gamblers

Who Will Leave Australian Market?

Inevitably, a host of major online gambling operators will exit the Australian market. UK-based Vera&John has already done so, while 888, PartyPoker and PokerStars have made clear their intentions to leave once the law goes into effect.

These companies are not interested in obtaining a licence to operate in Australia. Their dominant source of business is internet casinos and/or poker rooms. Paying for a licence to offer sports betting in an already competitive market doesn’t make sense. They also have a lot to lose should they be found operating in a ‘black market‘, including the incredibly successful operations they already run in other major iGaming jurisdictions like the UK and US.

PokerStars spent years and millions of dollars to gain a foothold in New Jersey. The company would never jeopardize that to secure the minimal profit it gains from Australia gamblers.

Internet Casinos Won’t Leave Australia Entirely

Prohibition has already proved to be minimally successful in the United States. Yes, all of the major operators are either gone, or operating only in the nation’s 6% of states where iGaming has been legalized. But a multitude of gambling websites continue to access the US market.

How do they do this without being intercepted by the US government? They fly under the radar. They mask their business with financial payments that banks don’t detect as being illegal gambling operations. If banks do catch on, they simply rebrand and find alternative financial companies to set up payments through.

This has been going on for years now, and the US has been unable – or unwilling – to do anything about it. There’s no reason to believe Australia internet casinos will be any different. The only critical factor will be for Australia gamblers, who will have to perform due diligence to deposit at honorable websites and avoid the multitude of rogue operations that will surely infiltrate the market.