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INTERACTIVE GAMBLING

25 May 2001 INTERACTIVE GAMBLING Tom Dale General Manager, Regulatory NATIONAL OFFICE FOR THE INFORMATION ECONOMY KEY ISSUES Policy : What is the Government trying to achieve? Law : How is it trying to achieve it? Technology : Interaction with policy and law. POLICY OBJECTIVES

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INTERACTIVE GAMBLING

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  1. 25 May 2001 INTERACTIVE GAMBLING Tom Dale General Manager, Regulatory NATIONAL OFFICE FOR THE INFORMATION ECONOMY

  2. KEY ISSUES • Policy : What is the Government trying to achieve? • Law : How is it trying to achieve it? • Technology : Interaction with policy and law.

  3. POLICY OBJECTIVES • Address a potential area of problem gambling before it starts by curtailing opportunities for it to grow. • Moratorium on new Australian services from 18.5.2000 to 18.5.2001. • NOIE report on feasibility & consequences of a ban on interactive gambling.

  4. INTERNET GAMBLING • 1,400 sites (100% increase in past 12 months). • Revenue estimates: 2001 $US2.5 b 2002 $US3.5 b 2003 $US5.0 b

  5. STATE OF PLAY • Moratorium expired 18 May 2001. • Interactive Gambling Bill 2001 - Senate Committee scheduled to report by 23 May - debate sooner rather than later. • Offline gambling issues being separately addressed by Commonwealth / States.

  6. INTERACTIVE GAMBLING BILL 2001 • Prohibits Australian-based interactive gambling services from being provided to customers in Australia. • Establishes complaints regime for Internet gambling services : focus is services hosted outside Australia.

  7. MAIN OFFENCE CREATED Cl. 15 A person is guilty of an offence if (a) the person intentionally provides an Australian-based interactive gambling service; and (b) the service has an Australian customer link.

  8. WHAT SORT OF GAMBLING SERVICES? • Placing, making, receiving or accepting bets • Introducing gamblers to providers • Lotteries & lottery tickets • A game of chance or of mixed chance and skill played for something of value and for consideration

  9. NOT AFFECTED • Contracts that, under Corporations Law, are exempt from a law relating to gaming or wagering. - options and futures contracts - online share trading. • “Linked jackpot” gaming machines. • TV game shows!

  10. AUSTRALIAN-BASED INTERACTIVE G.S.’s • Provided in the course of carrying on a business; and • Provided to customers using - Internet or other listed carriage service - broadcasting or datacasting service - any other content service; and • Has an Australian-provider link.

  11. AUSTRALIAN-PROVIDER LINK • Carrying on a business in Australia; or • Central management & control is in Australia; or • Provided through an agent in Australia; or • Relevant Internet content is hosted in Australia.

  12. AUSTRALIAN CUSTOMER-LINK • If, and only if, any or all of the customers of the service are physically present in Australia.

  13. OTHER LEGAL ISSUES • Constitutional heads of power. • Claims for compensation - Constitutional issues : is any property being “acquired”? - broader dimension : a “moral claim”?

  14. Technology Issues

  15. TECHNOLOGY ASPECTS • Blocking / filtering technologies - none 100% effective - all affect Internet performance - mandatory vs voluntary. • Overseas sites - the online content regime as a model.

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