The Federal Government is huffing and puffing over internet gambling again. In the face of a move by the ACT Government to issue the first internet gambling licence under purpose-designed legislation that has been in place for some time. The response of the Federal Government has been to announce it will backdate a moratorium on internet gambling.
The Federal Government’s position on internet gambling is ignorant and irresponsible. Its proposed one-year moratorium is just grandstanding and gives a false impression that it is taking a tough stand against gambling. The exact opposite it true. The Federal Government is putting hits head in the sand by refusing to responsibly regulate internet gambling site in Australia. The Federal Government cannot possibly prohibit overseas-based internet sites and cannot possible prevent Australians from logging on to them over the phone lines at the speed of light as if they were in the same room. If the Federal Government carries out its threat to overturn territory and state licensing systems for Australian-based sites, it will be denying Australians access to regulated internet gambling sites and leaving them to the mercy of unscrupulous or unknown overseas sites.
Australian gamblers would prefer an Australian site with an identified licence holder. Under the ACT legislation licence holders have to pass probity tests and guarantee they can pay winnings. There will also be tax revenue kept in Australia and employment of Australians. But if these sites are not available to gamblers will go to overseas sites. Australians will face insecurity. Tax revenue and employment opportunity will be lost, and local consumption lost to imports.
The Federal Government is playing on some voters fear of the internet in the hope of getting a few votes. It will do nothing for gamblers. The Government should recognise the nature of the internet. It’s international nature make the prohibition approach unenforceable. In the sure knowledge that a certain percentage of people with internet access will gamble anyway, it is better to trade on their desire to gamble with an Australian site and thereby ensure some control and tax revenue and the avoidance of money laundering.
On this occasion the Senate (which is supposed to be the states’ House) should block the Government’s legislation. By overriding the states and territories, the legislation will not be a moratorium on internet gambling, just a moratorium on the responsible regulation of it.