A week ago, Australia’s House of Representatives approved the ban on using credit cards to gamble online. However, another much-discussed ban, the ban on gambling advertisements, might prove to be a trickier matter.

Michelle Rowland, Australia’s communications minister, commented on the matter, saying that the implementation of such a ban might prove to be very tricky. During the recent National Press Club meeting, she commented on the matter, pointing out that the gambling ads ban might be more difficult to implement than the ban on tobacco ads.

Rowland added that no decision has been made on the recommendation to phase out gambling ads. For reference, the proposal seeks to ban gambling ads within three years, providing gambling companies with ample time to adapt.

Rowland explained that the relationship between the gambling industry and the sports sector has changed a lot over the past three years. She acknowledged the impact of ads on the sports community but insisted that a complete ban would be a challenging undertaking.

Speaking of this, National Rugby League Clubs recently started bracing for the potential ban. Some clubs expressed their hope that the ban, if passed, would contain a grandfather clause that allows them to comply with the terms of their existing sponsorships until they find a new sponsor.

In her speech at the National Press Club meeting, Rowland also addressed the increasing number of BetStop registrants. She pointed out that Australia’s self-exclusion scheme, originally launched in August, is now used by some 13,000 Australians. Rowland added that 40% of these people have opted for a lifetime exclusion from gambling.

BetStop is a scheme that allows Australian customers to exclude themselves from all forms of legal online and phone-based gambling services in Australia. Operators risk huge fines if they allow BetStop registrants to play.

In other news, Michelle Rowland recently came under fire after it became known that she celebrated her previous birthday with representatives of Responsible Wagering Australia. For reference, RWA is a group that represents the interests of several major gambling operators.

In the wake of this news, Kooyong MP Monique Ryan introduced a bill that seeks to make misters’ schedules more transparent to the public and make lobbying efforts more transparent. Ryan admitted that Rowland’s launch with RWA did not violate any rules but said that this was exactly the problem.

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Jamie Nettleton, partner at the Australian law firm Addisons, spoke with Inside Asian Gaming about the dangers of banning online gambling advertising. According to him, such a drastic move would channel players toward the dangerous black market.

A recent parliamentary report in Australia proposed the gradual ban of online gambling ads. Under the proposal, ads will be banned in four phases. During the first one, online gambling inducements and advertising on social media will be prohibited.

The second phase would see all online gambling advertising and commentary on odds banned during sports broadcasts, as well as an hour before and after them. In-stadia and player jersey sponsorships will also be prohibited.

The third phase would prohibit the airing of online gambling advertising between 6 am and 10 pm. Finally, the fourth and final phase would introduce a blanket ban on iGaming advertising and sponsorship, with the exception of advertising on dedicated racing and betting channels.

Nettleton Says the Ban Would Benefit the Black Market

During his interview with the news outlet, Nettleton commented on the theoretical effect a blanket ban on advertising may have. He noted that taking ads out of the equation would endanger the business of legal companies.

Stacking restrictions, such as a ban on ads, restrictions on what products can be offered, tight KYC requirements and rising taxes will make regulated companies less competitive than their offshore counterparts, Nettleton argued.

As a result, many players may prefer playing with unlicensed foreign brands. Nettleton believes that what defines a licensed company is “access to the market.” Access to the market, according to him, is not just having customers but also being able to market to those customers, allowing them to keep on coming.

Nettleton pointed out that other regulated jurisdictions have also introduced certain restrictions on advertising but few to the same extent as what is being proposed in Australia.

“Those Who Recognize a Good Price Will Find Better Odds and Utilize Them”

While Nettleton acknowledged that Australia’s Gambling Law prohibits offshore operators from operating in Australia, he added that it isn’t illegal for Australians to participate in games offered by black market companies.

And speaking of law and regulation, Nettleton also expressed his skepticism about the proposals to establish a nationwide gambling regulator, replacing the current state-based model. In his view, such a move may create more problems than solutions as conflicts between the states are sure to sprout up.

I mean, how is NSW going to justify continuing its Point of Consumption tax if there is a national regulator generating levies? How is that going to work out? Product fees are also issued at a state level, and no one will want to give up the golden goose.

Jamie Nettleton, partner at Addisons

When asked whether he believes such a regulator will be established, Nettleton replied that he cannot say anything with certainty. However, the analyst is highly doubtful of the proposed timeframe.

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A majority of Liechtenstein voters have rejected a proposed ban on casino activities in the country. In the referendum held on Sunday, the public opted to preserve the country’s known status as the “Las Vegas of the Alps.”

The microstate, which is a tenth the size of London, has six casinos across the country. If the casino ban proposed by anti-gambling groups, led by IG VolksMeinung, had succeeded, the European country’s gambling venues would have been shut down within the next five years.

Liechtenstein’s monarch and government disapproved of the ban, stating that the country benefited from the tax revenue — around $54 million per annum — generated by the activity. The opposing party argued that gambling led to issues like addiction and had the potential to ruin the country’s newly improved reputation globally.

Those arguments were seemingly swept aside during the nationwide referendum. Out of the 14,383 residents of legal age in Liechtenstein, 10,383 participated in the referendum — approximately 70% of the adult population.

Over 73% of the voters from that group were not in support of the casino ban and labelled IG VolksMeinung the offending party for trying to force the ban. Some 27% of the voters, however, supported the group’s actions. Per the vote results, Liechtenstein will continue to be the ‘Las Vegas of the Alps’.

While there was a significant gap between the supporters and the opposition, some areas in Liechtenstein recorded more positive feedback for the ban than others. One is Balzers, located eight minutes south of Casino Admiral Triesen. Around 32% of the respondents in the village supported the ban.

Balzers had the highest support for the gambling ban; however, Schaan came in a close second with over 30%. The Place Casino Liechtenstein is located in Schaan.

IG Volksmeinung, which facilitated the referendum as well as the signatures required to trigger it, was created to oppose the “casino flood”. According to the group, the casino industry could damage the national image that Liechtenstein put in so much effort to repair.

Over a decade ago, the European country was placed on an international blacklist of tax havens. Liechtenstein managed to get off the list after easing its bank secrecy laws in 2013 and joining an international forum to corporate with foreign tax authorities.

IG Volksmeinung also claimed that the country had too many casinos and, as a result, an increasing issue with problem gambling. The anti-gambling lobby said it did not want Liechtenstein to turn into “a casino and poker hotspot in the middle of Europe”.

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