This week has been very eventful for the Australian casino sector as Crown Entertainment reached a significant milestone in its journey towards compliance. Meanwhile, rival Star Entertainment faces another inquiry into its suitability as new revelations fueled the ongoing controversy surrounding the operator, highlighting the stark differences between the two companies.

Crown Entertainment Has Achieved Substantial Progress

The NSW Independent Casino Commission (NICC) has deemed Crown Sydney suitable to retain its casino license, signaling confidence in the company’s ability to uphold regulatory standards. This decision comes after almost three years of intensive remediation efforts by Crown, during which the company has undergone significant transformation. While this marks a milestone victory for Crown, the company must not grow complacent.

NICC chief commissioner Philip Crawford emphasized that while Crown has made substantial progress, there is still room for improvement. He underscored the importance of ongoing efforts to maintain high standards and cultural transformation within the organization. Crawford noted that the NICC would closely monitor the company to ensure it remained compliant.

This decision is a positive outcome for Crown Sydney, its staff, and the community – who can be sure the NICC will use all of its powers to keep the casino in check.

Philip Crawford, NICC chief commissioner

In response to the NICC’s decision, Crown Resorts expressed its commitment to continued collaboration with regulatory authorities as it fosters an improved internal culture free of past deficiencies. Crown Sydney CEO Mark McWhinnie highlighted the company’s dedication to implementing comprehensive reforms and operating at the highest industry standards as it remains committed to ensuring player safety and satisfaction.

Star Entertainment Remains Mired in Controversy

Meanwhile, the chairman of Star Entertainment Group, David Foster, faced criticism regarding controversial statements about the state’s gaming regulator. Foster reportedly expressed a desire to “abolish” the NICC. This revelation coincides with a public inquiry into Star Entertainment’s casino license suitability, adding to the growing controversies surrounding the company.

Foster clarified that his remarks addressed perceived disparities between casinos and other gaming establishments. He emphasized the need for a level playing field and denied any intention to undermine the NICC’s authority. Despite Foster’s reassurances, questions remain about the nature of his interactions with regulatory authorities, prompting speculation about the company’s compliance efforts.

There weren’t concerns around the NICC, it was a desire to broaden the scope of regulation of the industry.

David Foster, Star Entertainment Group chairman

The developments underscore the growing cultural differences between Australia’s leading casino operators. Crown Entertainment and Star Entertainment face similar challenges in maintaining transparency and accountability, but one company appears to be doing a better job. As regulatory agencies enforce stringent standards, the operators must demonstrate a steadfast commitment to compliance and responsible gaming practices.

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As the festive season approaches, concerns are mounting in Australia’s Northern Territory (NT) over the AUD 15 million ($10.1 million) year-on-year rise in gambling losses among its populace. This trend roughly matches other regions in the country, placing increasing pressure on local authorities and the federal government to implement better player protection policies and curb the growing gambling addiction epidemic.

Gambling Tax Income Comes at a Price

Recent data from the NT’s Department of Industry, Tourism, and Trade exposes the immense daily average of AUD 411,000 ($277,000) poured into poker machines across the region. Nearly half of these losses occurred in Darwin, where 722 pokies operate within 31 venues. This sum amounts to AUD 149 million ($100.42 million)  spent on poker machines in 2022-23, a worrying AUD 15 million increase.

Despite this worrying trend, higher poker machine profits contributed to the NT government’s substantial revenue of AUD 48.4 million ($32.62 million) from gaming machine taxes and an additional AUD 15.1 million ($10.18 million) from a community benefit levy raised by casinos and hotels last fiscal year. While these results underscore the financial significance of gambling within the region, they also caused significant player safety concerns.

Government data showing a recurrent December increase and subsequent January decrease in poker machine losses over the past three years has triggered concerns as welfare groups and researchers believe financial stressors and heightened emotions during the holiday season can be particularly detrimental to vulnerable individuals. These can be especially problematic in a society already struggling with addiction.

The Problem Is Not Isolated to NT

While NT’s gambling losses are impressive, they pale compared to other regions like New South Wales, Queensland, and Victoria, where this figure reaches well into the billions. Kim Caudwell, a senior lecturer in psychology at Charles Darwin University (CDU), told ABC News that Australians had a cultural affinity for gambling, noting that the government’s efforts to curtail this phenomenon were a monumental task.

Australians love to gamble. It’s something that’s very much embedded in our culture.

Kim Caudwell, CDU senior lecturer in psychology

Regions like New South Wales have undertaken extensive measures to combat this worrying trend. The upcoming cashless gambling trial shows substantial promise. If this measure is successful, it will be a significant milestone in Australia’s battle against problem gaming and may inspire other regions to follow suit. While NT has made some efforts to reduce the number of pokies in public venues, its efforts have been largely ineffective.

As concerns escalate, stakeholders urge proactive measures, emphasizing the urgency to support problem gamblers, address the root causes of addiction, and implement comprehensive strategies to counteract the societal impact of excessive gambling. The federal government faces rising pressure for rapid reform, but it cannot do so without the cooperation of local authorities.

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Leigh’s recent statements aim to honor the late MP Peta Murphy, who recently passed away from cancer. Murphy was also a staunch supporter of a more comprehensive government effort to reduce problem gaming, such as national regulation, an online gambling ombudsman, a harm reduction levy on online wagering service providers (WSPs), and a public education campaign.

Government Representatives Honored Murphy’s Legacy

During a tribute to Murphy, Leigh underscored her dedication to gambling reform, especially her passion for the recommendations outlined by a cross-party committee on online gambling harm. Murphy chaired this committee, which submitted its report to the government in June, proposing a phased ban on online gambling ads over three years as a primary measure.

It would be a fitting tribute to Peta if parliament were to enact that ban and name it after her. And, as a side benefit, we could forever redefine the term ‘Murphy’s law.’

Andrew Leigh, Assistant Minister for Competition, Charities, and Treasury

While the Australian government hasn’t formally responded to these recommendations, officials have been engaging with industry stakeholders, leaning towards limiting the frequency of ads on TV and radio rather than imposing a complete ban. According to a report by the Sydney Morning Herald, several anonymous MPs also expressed their support for such measures, even favoring a total advertising ban.

Acknowledging Murphy’s commitment to gambling reform, Prime Minister Anthony Albanese highlighted her advocacy for significant changes, including curbing the harm caused by online gambling. While the topic of gambling ads remains contentious and has been the subject of multiple discussions, Murphy was undoubtedly one of the driving forces for change in the sector.

Australia Still Faces Significant Regulatory Deficiencies

While Labor has previously implemented measures to address gambling issues, Responsible Wagering Australia, the body representing wagering service providers, opposes a blanket ban. They argue that it would significantly impact revenues that support various sectors, including regional broadcasters, sports integrity programs, and Australian content. The currently considered partial restrictions could be a reasonable alternative.

Australia’s rapidly growing gambling harm rates have been an increasingly pressing issue for the federal government. Opposition communications spokesman David Coleman criticized the current lack of initiative, drawing attention to the recently rejected bill to ban gambling ads before and after sports matches. Current regulations allow ads to stop five minutes before a game, but nothing prevents gambling companies from promoting odds during play.

Recent legislation banning the use of credit cards in iGaming was a hallmark success, but it is only one step towards solving the country’s endemic issue. As the debate around gambling advertisements continues, the push for a ban gains momentum, aligning with concerns about the impact of pervasive gambling promotions on individuals and society at large.

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A recent ABC News article delved into the story of an anonymous gambling addiction victim who shared his experiences, revealing the lack of player protection mechanisms in many Australian jurisdictions. His recovery story can be a valuable lesson for Australian authorities as they rally to bring order to the country’s gambling sector and introduce measures to curb rapidly rising gambling addiction rates.

Australia Remains Wracked with Problem Gambling

Michael, a 45-year-old Queensland resident, shared his unfortunate experiences after he placed his first bet on a horse race at age 17. The following decades of addiction saw him suffer from bankruptcy and heartbreak as his life hit rock bottom. Michael managed to recover and remains an active member of Gamblers Anonymous, but highlighted several concerning industry trends.

Michael voiced concerns about the accessibility of gambling to young people, especially with rampant advertising. He noted that the introduction of online wagering had made it easier than ever to get hooked, advocating for limited or complete gambling advertising bans and emphasizing the importance of support systems like Gamblers Anonymous. His opinions align with many industry experts who believe it is time for urgent change.

There are five times as many gambling ads on TV for sports or race betting than there are alcohol ads.

Alex Russell, CQUniversity Gambling Research Laboratory academic 

The federal government conducted an inquiry in late June, revealing Australians as the world’s highest per capita spenders on gambling, losing $25 billion annually. The study recommended a phased ban on all gambling advertising across states and territories within three years, citing concerns about grooming children into gamblers.

The Government Has Been Slow to Respond

Despite evidence of rising gambling harm, the Australian federal government has not enacted any advertising recommendations and is still deliberating its response. The Alliance for Gambling Reform, through chief advocate Tim Costello, urges swift action, accusing the delay of signaling a cozy relationship between the government and the betting industry.

Minister for Social Services Amanda Rishworth and Minister for Communications Michelle Rowland issued a joint statement, expressing the government’s intent to consider the report’s recommendations and collaborate with stakeholders for a response. However, the gambling industry remains reluctant to reduce advertising without regulation, citing fears of losing out to competitors.

We need a more coordinated approach to reducing gambling advertising that’s fair for everyone.

Alex Russell, CQUniversity Gambling Research Laboratory academic

Michael’s story emphasizes the urgent need for regulatory action, not just for those currently afflicted by gambling addiction but also to safeguard the future generation. While Australia has achieved some progress, problem gambling remains a rising concern. Decisive action and new, effective regulations remain the only feasible option to combat this pervasive issue.

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Australia’s government reported that BetStop, the country’s new national self-exclusion register, is proving to be a resounding success. According to official data, over 10,000 people have used the register to exclude themselves from gambling so far.

The register was launched in August 2023 and is a result of Australia’s efforts to lower the concerning problem gambling rates in the country. Many of the self-excluded people are under 40, with many of them opting to exclude themselves from gambling for a lifetime.

In addition, 1,200 people were nominated as support persons. Referred to the program by self-excluded players, support persons are people who can help gamblers get through the self-exclusion period.

BetStop Now Boasts 10,000 Registrants

BetStop is a scheme that excludes participants from all forms of gambling in Australia and prevents them from receiving marketing material. Users can select an exclusion period of between 3 months and a lifetime and get their gambling habits under control.

BetStop is free with most registrations taking no longer than 5 minutes. Australian operators are required to raise awareness of BetStop’s services among their clients.

The Australian Communications and Media Authority is currently responsible for making sure that operators do not market their products to self-excluded people and do not allow them to wager through new accounts.

Further reinforcing the program, the government now requires operators to properly verify a customer’s identity at registration and make sure that they are not a self-excluded person or a minor.

BetStop Is Making a Difference

Australia’s Minister for Communications, Michelle Rowland, praised BetStop’s popularity, saying that the registration numbers mean that the program is “making a big difference.”

That’s why we launched BetStop – the National Self-Exclusion Register – in August this year as the final measure of the National Consumer Protection Framework for Online Wagering.

Michelle Rowland

Rowland advised people struggling with their gambling or the gambling of a loved one to visit the BetStop site and learn more about the program.

Amanda Rishworth, Australia’s Minister for Social Services, also commented on the matter, highlighting the government’s efforts to mitigate gambling harm.

It’s great that BetStop is already having such a positive impact, along with our other measures such as new evidence-based taglines that Australians would have seen on rotation on their screens and radios.

Amanda Rishworth

Rishworth also praised the mandatory pre-verification measures, saying that they are already preventing people from finding workarounds. The Minister for Social Services concluded that harm minimization “is not a set-and-forget exercise.” Because of that, the government is working closely on implementing the measures outlined in the National Consumer Protection Framework.

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