SUMMARY OF FINDINGS AND RECOMMENDATIONS OF ALP SENATORS

Labor Senators believe that the most effective way to manage interactive and Internet gambling is to have State and Territory cooperation in formulating a national regulatory regime. Labor supports Federal co-ordination of consistent State-based regulatory regimes. The appropriate forum is the Ministerial Council comprising relevant State and Federal Ministers.

Labor Senators consider the approach taken in the Bill to be flawed and inappropriate because it will not achieve the stated objectives of the legislation. Labor Senators note that there are a number of specific concerns with the drafting of certain provisions in the Bill which render the Bill’s impact uncertain or unjust.

Labor Senators are concerned to ensure that problem gambling arising from interactive gambling is minimised to the greatest possible extent. We are concerned that the Government approach implemented by this Bill does not control or limit problem gambling in the online environment.

Labor Senators do not support the Government’s Bill. There is one policy that will provide Australians with the highest possible degree of protection. Labor believes that effective regulation of interactive gambling is the only practical way to minimise resultant social harm, including criminal harm. This approach will also maximise the benefits that will flow to consumers, the racing, gambling and IT industries, and the Australia economy.

Labor Senators support the approach that we have detailed in minority reports to the Netbets and Interactive Gambling (Moratorium) Bill 2000 inquiries. Having considered the alternative policy approaches to interactive gambling, Labor Senators conclude that the overriding objective is to protect Australians from the potential harms and problem gambling that could arise from gambling through new media.

Overwhelmingly, the partial ban that the Government seeks to adopt through the Interactive Gambling Bill 2001 has been criticised for its inefficacy and futility. Not only have the ultimate objectives of the Government’s policy been defeated by its implementation and flawed approach, but its legislation is likely to exacerbate the very harms that it is intended to minimise.

It is likely that this partial ban on interactive gambling will exacerbate problem gambling by removing a regulated service with in-built safeguards whilst still allowing access to unregulated and unlicensed offshore sites (in addition to regulated, reputable offshore sites).

Labor Senators do not support an outright ban of gambling on the Internet because we do not consider it to be technically feasible or necessary.

Labor Senators consider that a partial ban on interactive gambling will not prevent access to online gambling and will not prevent Australian gamblers from accessing offshore sites that are unregulated and do not offer consumer protection or probity. For this reason we cannot support the Government’s Bill when it is so patently not in the best interests of Australians and fails to achieve its stated objectives.

Labor Senators acknowledge that the online gambling industry is currently subject to a high degree of regulation and oversight and that State and Territory governments already ensure that online and interactive gambling operators meet the highest standards of probity, auditing and licensing agreements.

Labor Senators recommend that current regulatory requirements applying to off-line and land-based casinos, clubs or wagering venues should be extended to online casinos and online wagering facilities.

Considering that existing AFP funding is seriously inadequate and the AFP (and other police forces) is expected to fund this additional role from within existing resources, the AFP will be unable to effectively fulfil its role under the Bill, thereby compromising implementation of the measures in the Bill. Labor Senators restate the need for the AFP to be adequately resourced if it is to have any significant impact on the regulation of interactive gambling in Australia.

Labor Senators do not believe that this Bill will overcome any of the problems associated with interactive gambling, so the extent of the relative problems for various modes of gambling (such as wagering and lotteries) is not relevant to our assessment of the Bill. Labor Senators will oppose the Bill in its entirety.

Labor Senators conclude that the apparent lack of clarity in defining the defence in subsection 15(3) of the Bill needs to be remedied in light of the seriousness of penalties for committing the offences in section 15 of the Bill (the offences relate to the provision of services to Australians by Australian Interactive Gambling Service Providers (IGSPs)).

Considering that the gambling modes that are apparently inadvertently prohibited pose a minimal threat to problem gambling, a rationale for their inclusion is unclear, and the Explanatory Memorandum does not provide any guidance on that account. NOIE has stated that they are not intended to be banned so this appears to be another flaw in the Bill, albeit one that the Government could be expected to rectify.

Labor affirms its support for a regulatory framework, and industry wide codes of practice including:

The overall policy approach of the Government is flawed, this is evident from the fact that the legislation seeks to put in place a system that cannot even achieve its stated objectives, and threatens to defeat and even worsen the consequences sought to be avoided.

The Government’s approach to interactive gambling is nonsensical, in fact, only one true rationale can be derived and that is blatantly political scaremongering. Rather than act in the best interests of present and potential Australian consumers of Internet gambling services, the Government seeks to capitalise on the general public’s fears of gambling and misunderstanding of the issues, to the ultimate detriment of all Australians.