Interactive and online gambling and gambling advertising
Interactive Gambling and Broadcasting Amendment (Online Transactions and Other Measures) Bill 2011

Second report

8 December 2011

© Commonwealth of Australia 2012
ISBN 978-1-74229-557-2

Part 1
Part 2
Part 3
Part 4

Background to reference
Terms of Reference
Conduct of the inquiry
Referral of a related bill
Acknowledgements
Terminology
Use of terminology in the report
Note on references
Structure of the report

Part 1 - Introduction and background

Global interactive gambling market
Online gambling prevalence rates
Online gambling research findings
Harms associated with online gambling
Online problem gambling rates
Risks of online gambling
Support and education
The need for more research

Background
A summary of the case for liberalisation
Advantages of liberalisation
Risks of liberalisation
Issues
A summary of the case for prohibition
Do the difficulties with prohibition add up to a case for liberalisation?
Views of states and territories

The trend towards liberalisation
United Kingdom
France
Alderney

The prohibition model
United States of America
Federal legislation
Germany
Canada
An international regulatory standard?
Conclusion

Part 2 - The Interactive Gambling Act

The power of the Commonwealth to regulate
Working towards the Interactive Gambling Act
Interactive Gambling Act
Advertising of prohibited interactive services
Agency roles
Related work

Clarifying the purpose of the IGA
Limiting the provision of interactive gambling services
Deficiencies of the IGA raised with the committee
Options to strengthen the IGA
Other approaches to regulation
Committee conclusion

The need for legislation to be able to deal with emerging new technologies
Potential for harm minimisation measures
Other online gaming opportunities
Other issues

Effects of gambling advertising
Effect of advertising on youth
Regulating online gambling advertising
Advertising of prohibited content under the Interactive Gambling Act
Issues raised with the committee
Inducements to gamble

Part 3 - Sports betting and wagering

Introduction
Definitions
Which sports are involved?
Prevalence of sports betting and race wagering
The growth of online wagering
Wagering providers
Sports betting and problem gambling
Sports betting and the Interactive Gambling Act
State and territory regulation

Exemption of online wagering from the Interactive Gambling Act
The current ban on 'in-play' betting online
The risk of underage gambling
Betting on losing outcomes
Regulation of online wagering by state and territory governments
Credit betting
Payment of commissions to third parties
Conclusion

Recent proliferation of sports betting advertising
Inducements to bet
Sponsorship of sports
Extent of sports betting advertising during sporting events
Effects of gambling advertising on young men
Effectiveness of harm minimisation messages
Problem gambling associated with advertising of sports betting
Promotion of 'live odds' during sport
Calls for further action on advertising
Regulatory approaches to advertising of sports betting
Conclusion
Other issues

Introduction
International match-fixing and corruption scandals
National Policy on Match-Fixing in Sport
Legislative measures to address match-fixing

Coalition of Major Professional and Participation Sports (COMPPS)
Player and participant vulnerability
Exotic bets

Part 4 - Interactive Gambling and Broadcasting Amendment (Online Transactions and
Other Measures Bill 2011

Background
Purpose of the bill
Schedule 1—Ability to suspend or cancel online gambling transactions
Schedule 2—Inducements to gamble

Clause 3—Prohibitions on corporations offering gambling services
Schedule 3—Advertising
Schedule 4—Obtaining a financial advantage by deception, in relation to a code of sport
Conclusion

Interactive Gambling Act
The view of the Productivity Commission 
Advantages
Additional requirements
Would Australians prefer Australian-based sites?
What about overseas sites?
Payment controls
Conclusion

The Interactive Gambling Act 2001 (IGA)
Prohibiting the offering of credit to gamblers
Advertising of gambling products
Conclusion

There are already problems to address
The risks of opening up the gambling market
Conclusion
Advertising
Inducements
Conclusion
Interactive Gambling and Broadcasting Amendment (Online Transactions and Other Measures) Bill 2011
Schedule 1 —Ability to suspend or cancel online gambling transactions
Schedule 2—Inducements to gamble
Prohibitions on corporations offering gambling services —Clause 3
Schedule 3—Advertising
Schedule 4—Obtaining a financial advantage by deception, in relation to a code of sport
Additional information