Australian Online Gambling Regulation at sight?
Will online gambling regulations benefit Australia, and are there issues with taking this action? This article explores the key arguments and facts.
The Australian gambling industry is one of the largest in the world. According to the latest statistics, there are 6.8 million gamblers in Australia, according to numbers from Savings.com.au. This covers 39% of the total population. The total gambling turnover between 2018 and 2019 was $225 billion, and throughout the pandemic, online gambling rose to cover 78% of the total industry.
The online gambling industry in Australia is currently unregulated. However, this could soon change. There has been talk for some time about regulating this booming sector due to the massive loss of tax revenue for the Australian government. Many now believe that the increase in online gambling seen through the pandemic will spur officials to take action.
In 2019, the government began to block illegal offshore gambling websites targeting Australians. In 2022, the AMCA blocked 10 offshore illegal gambling websites. The organization noted that Australians spent $400 million on these sites annually, adding up to $100 million in lost taxes. People like Jack Harris, Chief Editor and Australian online gambling expert at Casinoshub.com, believe that plans to regulate online casinos are already in place. But what will this mean for the industry as a whole and online gamblers?
Permanently Stamp Out Illegal Offshore Businesses
In 2001, legislation was implemented to prohibit online casinos from operating. This targeted online casinos in Australia, and many have argued it is the reason for the growth of offshore alternatives. Despite the government’s best efforts, the illegal online industry is estimated to grow at 15% per year. Regulating the industry would ensure that Australian gamblers won’t have to seek out illegal alternatives and can spend their money at online casinos in Australia that will pay corporate taxes.
Illegal online casinos aren’t just bad news for the government. They are dangerous for customers as well. Since there are no regulations in place, if they are suddenly blocked, any money spent at these casinos can be left in limbo. If a gambler does not withdraw the money before the site is blocked, they could lose a fortune.
A Change In Perspective
Another issue in the gambling industry right now is public perception. The problem with a lack of regulation in the industry is that online gambling is still taboo in Australia. Many people are unlikely to admit that they have an online gambling addiction and won’t get the help they require. By regulating the online gambling industry, it will become more socially acceptable for people to gamble online immediately. Initiatives can also be put in place to ensure that players are safeguarded. Nefarious actions by certain companies can be eliminated to help ensure that gambling does not get out of hand. There is already evidence of this being successful in countries where online gambling is regulated, like the UK.
Prohibition Is Ineffective
So far, the Australian government's approach to online gambling has been to ban it, shut down illegal sites, and play "whack-a-mole" online. This is an inefficient, time-consuming, and costly process that history has shown time and time again doesn’t work.
In the 1920s, alcohol was banned throughout the US. This didn’t remove the problem; it simply forced it underground. This is exactly what has happened with gambling in Australia, with illegal offshore businesses moving in and customers willingly giving them their tax-free money.
Regulation is a much better answer because it gives people control over the gambling industry.
Investment Opportunities
It's also possible that regulation would encourage more people to invest in Australia's online gambling industry. Even though they would have to pay taxes and follow some rules, it could still be a good business opportunity. This could bring significant benefits to the Australian economy as new legal businesses crop up across the industry. Investors could take a slice of the $200 billion-plus industry. This is important because the overall economic outlook for Australia and the rest of the world is terrible because of global turmoil and the pandemic's continued effects.
While there are concerns that the regulations that may be put in place could stifle the online gambling industry, overall, they are likely to provide more benefits than negatives to gamblers and businesses. Prohibition, which has already been proven ineffective, is a much less appealing than regulation.
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