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Bets ban seen as billion-dollar blooper
By KATRINA NICHOLAS
Australia could lose up to $2 billion in foreign exchange revenue if the Federal Government introduces legislation enforcing a 12-month ban on new interactive gambling services, an Internet casino expert has warned.
Mr David Kinsman, chief executive of Internet-casino software provider Online Gaming Systems, said yesterday that the year-long moratorium, to be enforced via retrospective legislation, was already having a detrimental effect.
He said five of his company's clients, which were planning to operate Internet casinos from Australia, had now decided to set up shop overseas.
Mr Kinsman also said the Federal Government had all but blown Australia's chance to become a world centre for regulated online gaming with other countries stepping up work on legislation to regulate Internet gaming in the hope of attracting companies which were going to operate from Australia.
"South Africa was going to have legislation regulating Internet casinos within two years but now they're hoping to have that legislation in place much sooner," Mr Kinsman said.
After considering the possibility of a moratorium since late April, the Federal Government last week confirmed it would introduce legislation in the spring session of Parliament, which begins in mid-August.
The legislation, which would have effect from May 19, is expected to apply to all Australia-based interactive gaming operators and breaches could attract fines of up to $1.1 million a day.
The proposed legislation does not prevent the States and territories from issuing Internet gaming licences but does prevent the start-up of any new online gambling services.
Under the moratorium, only two Internet casinos - Lasseters Online and Gocorp - would be able to operate in Australia.
Mr Kinsman also said the future of bookmakers had been placed in doubt by the moratorium.
He said as the popularity of betting on horse and dog racing declined, bookmakers were increasingly setting up online to offer sportsbetting.
"Now, they won't be able to do that and I think within two years half of Australia's bookmakers could go out of business because of the ban."
By KATRINA NICHOLAS
Australia could lose up to $2 billion in foreign exchange revenue if the Federal Government introduces legislation enforcing a 12-month ban on new interactive gambling services, an Internet casino expert has warned.
Mr David Kinsman, chief executive of Internet-casino software provider Online Gaming Systems, said yesterday that the year-long moratorium, to be enforced via retrospective legislation, was already having a detrimental effect.
He said five of his company's clients, which were planning to operate Internet casinos from Australia, had now decided to set up shop overseas.
Mr Kinsman also said the Federal Government had all but blown Australia's chance to become a world centre for regulated online gaming with other countries stepping up work on legislation to regulate Internet gaming in the hope of attracting companies which were going to operate from Australia.
"South Africa was going to have legislation regulating Internet casinos within two years but now they're hoping to have that legislation in place much sooner," Mr Kinsman said.
After considering the possibility of a moratorium since late April, the Federal Government last week confirmed it would introduce legislation in the spring session of Parliament, which begins in mid-August.
The legislation, which would have effect from May 19, is expected to apply to all Australia-based interactive gaming operators and breaches could attract fines of up to $1.1 million a day.
The proposed legislation does not prevent the States and territories from issuing Internet gaming licences but does prevent the start-up of any new online gambling services.
Under the moratorium, only two Internet casinos - Lasseters Online and Gocorp - would be able to operate in Australia.
Mr Kinsman also said the future of bookmakers had been placed in doubt by the moratorium.
He said as the popularity of betting on horse and dog racing declined, bookmakers were increasingly setting up online to offer sportsbetting.
"Now, they won't be able to do that and I think within two years half of Australia's bookmakers could go out of business because of the ban."