The Albanese Government has launched a comprehensive review into the regulation of online keno and foreign-matched lotteries as part of its ongoing efforts to minimize the harms associated with online gambling.

This review aims to deepen the Government’s understanding of the impacts these types of lotteries have on the community and to evaluate whether regulatory changes are necessary. An Issues Paper has been released to inform the review process.

Understanding Online Keno and Foreign-Matched Lotteries

Keno is a traditional game of chance where players select numbers to win prizes. Historically played in clubs and pubs, keno is now also available online in some Australian States and Territories. Foreign-matched lotteries allow Australians to participate in lottery draws conducted overseas.

The review follows a recommendation by the Senate Standing Committees on Environment and Communications, which suggested a 12-month review into the regulation of keno-type lotteries under the Interactive Gambling Act 2001 (IGA).

Scope and Consultation of the Review

The Government will conduct targeted consultations as part of this review, seeking input from various stakeholders, including harm minimization advocates, community and charity organizations, academics, State and Territory governments, newsagents, and the wagering industry.

The Issues Paper addresses several key areas:

• The nature and size of the online keno and foreign-matched lotteries market in Australia.
• The impact of existing, new, and emerging keno-type and foreign-matched lotteries.
• Adverse experiences of customers, including loss of deposits or non-payment of winnings.
• The relevance of the definition of an ‘excluded lottery service’ under the IGA.
• Policy options such as credit and digital payment bans or other restrictions to reduce gambling harms.

Ongoing Efforts to Combat Gambling Harm

This review is part of the Government’s broader agenda to tackle online gambling harms in Australia. The Government is also working through its response to the House of Representatives Inquiry into online gambling and its impacts on those experiencing gambling harm.

Recent Measures to Reduce Gambling Harm

Several measures have already been implemented to mitigate gambling harms:

• Launching BetStop, the National Self-Exclusion Register, with over 22,000 Australians self-excluded from online wagering and promotions as of April 2024.
• Mandating customer ID pre-verification for all new online wagering accounts to prevent children from gambling and to protect those registered with BetStop.
• Banning the use of credit cards for online wagering, effective from June 2024.
• Introducing mandatory minimum classifications for gambling-like content in computer games, starting in September 2024.
• Replacing the ‘Gamble Responsibly’ message in wagering advertising with new, evidence-based taglines.
• Implementing nationally consistent staff training for online wagering companies.
• Requiring online wagering companies to send monthly activity statements to their customers, detailing wins and losses.

Government Commitment to Reducing Gambling Harm

Minister for Communications, the Hon Michelle Rowland MP, stated: “The Albanese Government has a comprehensive agenda to minimize online wagering harms. The growth and availability of online keno and foreign-matched lotteries is particularly concerning. It is important to understand the impact these two products are having on the community, including vulnerable Australians and small businesses. Feedback will ensure any changes the Government may make are well-balanced and fit-for-purpose.”

Minister for Social Services, the Hon Amanda Rishworth MP, added: “Our Government takes gambling harm seriously and we are committed to protecting consumers, including their families and the community, from gambling-related harm. This includes continuous review and work to address all drivers of gambling harm such as the regulation of online keno and foreign-matched lotteries. Our Government has already taken major steps to minimize and combat the increasing prevalence of people experiencing gambling harm in Australia and will continue to do so.”

Source:

Review into the impact of online keno and foreign-matched lotteries, minister.infrastructure.gov.au, July 15, 2024.

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The Betting and Gaming Council has urged the British government to “honor its commitments” on frictionless financial risk checks. This follows a recent announcement that the Petitions Committee will discuss the issue.

In 2023, Nevin Truesdale, CEO of the Jockey Club, launched a petition against the affordability checks, arguing that they are discriminatory and harmful. According to him, the measure would make betting unsustainable for many people, forcing them to go to the black market.

Truesdale’s petition eventually surpassed its target goal of 100,000 signatures. As a result, the Petitions Committee confirmed that a debate will be held on February 26.

In the wake of this announcement, the BGC praised Truesdale’s petition. The council reiterated its support for “frictionless, enhanced spending checks online.” According to the body, such measures must target people who exhibit signs of harm, allowing swift intervention.

However, the council also agrees that this measure must be truly frictionless and must not interfere with the vast majority of gamblers who play safely and responsibly.

Dugher Praised Truesdale’s Initiative

Michael Dugher, the BGC’s chief executive officer, weighed in on the matter, saying that the Parliament must honor its commitment to make the checks truly frictionless.

At the BGC we supported enhanced checks for online gambling, but have been clear throughout that checks should be carefully targeted on those showing signs of problem gambling, or those who are at risk of harm, so operators can use technology to take swift action.

Michael Dugher, CEO, BGC

Dugher pointed out that a vast majority of punters in the UK have made it clear that they will not submit to intrusive checks. Since many players play safely and responsibly, the government must be careful not to drive them to the unregulated black market, the BGC CEO said. Dugher added that his team is closely working with the UK Gambling Commission to make sure that there would be a proper pilot before a permanent change is introduced.

In the meantime, Dugher congratulated Nevin Truesdale for helping to secure an “important parliamentary debate.”

Nevin Truesdale and his team have injected a much-needed dose of common sense. Too often, the debate around gambling has been dominated by a handful of out-of-touch anti-gambling prohibitionists whose enthusiasm for draconian changes would wreck great British sports like racing.

Michael Dugher, CEO, BGC

The BGC CEO added that blanket measures would endanger the British gambling sector. This sector, he reminded, contributes £7.1 billion (roughly $9 million) to the economy a year, generates £4.2 billion ($5.3 billion) in tax and supports some 110,000 jobs.

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Tim Costello, chief advocate for the Alliance for Gambling Reform, highlighted the importance of a gaming ad ban as Australia keeps struggling with a surge in problem gambling. He warned that clandestine talks behind closed doors could herald a potential compromise on the landmark parliamentary inquiry’s recommendations for gradually phasing out gambling advertising within three years.

A Lack of Transparency Raises Lobbying Concerns

Recently uncovered documents have unveiled closed-door dialogues between gambling entities, broadcasters, sporting codes, and global tech companies with Communications Minister Michelle Rowland and her staff. These talks centered on responding to proposals for a complete wagering advertising ban. Costello notes that stakeholders likely felt threatened by the measure and sought to apply pressure against it.

The involvement of prominent gambling companies like Sportsbet, Crown, Betfair, Tabcorp, and others in these private meetings has raised skepticism about the transparency and integrity of the decision-making process. Costello questioned the nature of the information shared behind closed doors and the validity of claims presented by these stakeholders, emphasizing the necessity for transparency in such discussions.

Australia has a huge blind spot when it comes to gambling and the immense harm it causes in the community.

Tim Costello

Speaking for The Sydney Morning Herald, Costello lamented the discreet discussions as Minister Peta Murphy, the inquiry’s chair, worked exhaustively until her recent unfortunate passing due to cancer. Murphy’s dedication culminated in a comprehensive report featuring 31 recommendations to curb the detrimental impact of online gambling and advertising on society. However, a compromise with the broader industry could jeopardize her vision.

Problem Gambling Remains a Pressing Issue

Highlighting the magnitude of gambling-related harm in Australia, with an annual loss exceeding $25 billion, Costello underscored the urgency to address this issue. He stressed the need for the government to honor the recommendations set forth by the multi-party parliamentary inquiry, resisting undue lobbying pressures from the gambling industry.

Moreover, he urged Australian lawmakers to heed the public sentiment, backed by polls indicating over 70% support for a gambling advertising ban. While Costello noted that ignoring industry recommendations could be counterproductive, he once again urged for transparency, highlighting the industry’s significant financial influence in various sectors as it defends its interests.

Now is time to resist the pressure and back-door lobbying by big gambling and other vested interests.

Tim Costello

As the government prepares to unveil its response to the Murphy inquiry, Costello implores new measures to reduce gambling-related harm, focusing on advertisement restrictions. He noted that gaming should face similar restrictions to tobacco and alcohol due to its widespread negative societal impact. The Australian government’s response should set the tone for its future gambling-related policy and hopefully dispel any integrity doubts.

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However, Japan’s Ministry of Land, Infrastructure, Transport, and Tourism is having none of it, as the government has qualms about the feasibility of the project as submitted by Nagasaki.

Nagasaki Misses the Mark with Government

Kyushu Resorts Japan and Nagasaki prefecture will have to go back to the drawing board or fold their bid altogether. Government officials have expressed open worry over the nature of financing of the proposed projects.

There seems to be an unsatisfactory level of commitment outlined in the letters that are supposed to show support and outline the terms of funding. They are customary and usually enough to convince government officials to indeed agree and proceed with the further stages of a project.

As such, the panel that weighed in on the decision said that they still doubted whether the proceedings could move on due to this lingering fear of lack of funds. It’s not just the funding, though, as the panel is similarly dubious of the chosen companies that will supposedly operate the project.

Casinos Austria International was the only participant who had a hands-on approach in such matters, and it was unlikely that CAI alone would make up for all the participants in the Kyushu Resorts Japan consortium. More worryingly, CAI’s investment is smaller than that of keener but less experienced parties.

Lack of Expeirence and Other Concerns

There was also outlined fear about how the proceeds from an operational casino resort would be divvied up, as too many investors – as is the case with Nagasaki’s bid – would mean that there will be many parties that are eager to recoup their investment overlook other important aspects, such as eliminating the harmful influence of casinos.

Nagasaki still has plenty of time to consider a revised bid, although securing more investors – or the right investors as it were – and eliciting stronger commitment would prove the most difficult part.

Still, overblow fears of recession and a flagging economy may embolden overseas companies with plenty of experience and cash on hand to move more strongly on Japan, and use the near-miss Nagasaki just had with the government to rally and potentially host one of the casino resorts – a total of three to arrive in the year over the next decades or so.

Osaka in the meantime has been gaining steadily with its construction and is likely to arrive on time.

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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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The majority of people who are in this group would benefit from level 2 intensity treatment the government argues, or some 970,000 people. This means that the people in question would benefit from two or three sessions of motivational interviewing which is administered by gambling specialists.

Treatment Levels Vary By Intensity, But They Do Have an Effect

Some 243,000 adults, though, would need a level 4 intensity treatment, the government specifies, as this is designed to be a far more comprehensive and demanding treatment course with 8 to 14 sessions which are administered by cognitive behavioral therapy psychologists, who specialize in gambling disorder.

Furthermore, another 40,000 individuals would need a 12-week residential treatment program, which is the most intensive form of care. There is no exact way to tell which people will benefit from what program exactly, as practitioners must also play a role in deciding, but the government’s estimates offer robust guidance.  

The data was commissioned by the Office for Health Improvement and Disparities and conducted by the University of Sheffield and the University of Glasgow. It’s an interesting research and approach, as it directly seeks to quantify how many people would benefit from treatment.

Not only that but owing to this data, government and industry groups can calculate the costs of such interventions. Although the exact costs of these sessions are not exactly established, they would give the government a rough estimate of what is needed to address the issue.

Of course, if people are actively receiving treatment, they would have to be followed up to see if the treatment was efficient. There are several reasons to be optimistic, however, as GambleAware recently shared its optimism that interventions are having a positive impact.

Focus the Funds Where They Are Needed the Most

This means that treatment and interventions are efficient even if they cost money. Then again, there is the proposed rise of a gambling levy that would go directly to charities and treatment service providers, designed to ensure that individuals who need gambling treatment get it.

More importantly, UKGC’s latest data will allow the efforts to be focused. Earlier interventions and treatments to more people are more cost-efficient it seems, and they may even be administered in groups.

As GambleAware found out, treatment helps 9 out of 10 people, so all the more reason to seek and ensure that these solutions reach people.

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A lot is changing when it comes to Australian gambling law, and new legislation has just been passed. The use of credit cards as a payment method for placing online bets will be prohibited from now on, as the Australian Federal Parliament decided.

Important measure

Kai Cantwell, the CEO of Responsible Wagering Australia, supports this decision. He thinks that the country needs this decision since the residents will be allowed to gamble only with the money they actually have on their cards.

Cantwell commented: “This is an important measure to protect customers and their loved ones, making it easier for people to stay in control of their own gambling behavior. It will complement the existing offering of safer gambling account management tools by RWA members to customers to help them stay in control of their betting.”

Lotteries and keno issue

He added that it was disappointing that some kinds of games, for example, lotteries and keno, were excluded from this ban since the lotteries are the most popular type of gambling in the country, especially in people from lower socioeconomic groups.

Only in 2020 and 2021 did citizens lose more than $3.2 billion playing these two types of games, according to the Australian Gambling Statistics. When online keno was legalized in Victoria, these numbers increased even further, and in 2022 and 2023, the losses increased by more than 400%.

There are other parts of the gambling law that lotteries are excluded from. There is also a National Self Exclusion Register, Betstop, so the Australians who already have excluded themselves from other forms of online gambling still have the opportunity to gamble up to $10.000 online by playing lotteries.

Cantwell added: “To effectively reduce gambling harm, consumer protection measures must exist across all forms of gambling. Otherwise, those at risk of harm will just move from one form of gambling to another less regulated type.”

Strict regulations

The industry is talking about the potential credit card ban from 2021. The RWA members collaborate with the federal government and financial institutions to deliver the best possible solutions when it comes to credit card bans and online gambling regulations. The institutions will continue to work hard on this, and the ban is supposed to be implemented in all online casinos in Australia within six months.

This is the newest regulation in the Australian market, but not the only one. Other prohibitions include banning external signage, reducing the cash-input limit, reducing the cap on machine entitlements, and others.

Source: Narayan, Niji, “Australian Parliament Passes Legislation Banning Online Credit Card Betting”. European Gaming. December 7. 2023.

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The “Casino Control and Other Legislation Amendment Bill 2023” is part of the government’s response to the ongoing controversy around The Star Entertainment Group’s severe regulatory oversights. The newly proposed measures include regular inquiries into casino-associated organizations, restrictions on cash usage, mandatory play breaks, and more stringent technology adoption.

These Significant Updates Will Ensure Casino Accountability

Queensland’s legislation seeks to implement the 12 recommendations outlined by Hon. Robert Gotterson, who conducted an in-depth probe into The Star’s regional operations and identified substantial regulatory breaches. These changes are part of the government’s ongoing commitment to improving the regulation and oversight of the casino industry.

The new laws prioritize reducing gambling-related harm and combating money laundering. Some proposed measures envision cash use restrictions and mandatory breaks during play to protect players while fostering responsible gambling practices. Some of these provisions mirror other Australian states, which have also rallied against problem gambling.

The bill also introduces a supervision levy on casino licensees, ensuring that the cost of regulating casinos does not burden taxpayers, as the industry covers the expenses related to oversight. This legislature builds upon last year’s law reforms that introduced pecuniary penalties for casinos up to $100 million, helping offset gambling’s negative societal impact.

The Region Maintains Its Stance against Problem Gambling

Queensland Minister for Justice and Attorney-General Yvette D’Ath emphasized that the reforms were a vital part of the government’s long-term strategy to strengthen the industry’s oversight and safeguard the interests of operators and players. She added that casino executives would have additional duties, and non-compliance would lead to significant personal penalties, hopefully fostering a lasting impact.

These reforms will continue to modernize Queensland’s gambling and casino laws to ensure they remain effective now and into the future.

Yvette D’Ath, Queensland Minister for Justice and Attorney-General

The proposed regulatory updates could not come too soon as recent data revealed that Queensland saw a sudden surge in gambling losses as bettors squandered away more than AUD5 billion ($3.2 billion). Although the new measures are a welcome step forward, the proliferation of electronic gaming machines remains one of the region’s most pressing concerns.

Queensland lawmakers hope the new legislation will complement existing gambling harm prevention efforts. The government is making impressive progress with targeted regulatory updates and increased funding for charity and education. Mandatory cashless gaming for transactions exceeding $1000 will be the next significant milestone in combating problem gaming and turning the tide against the region’s growing addiction rates.

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Bullish on exiting the Financial Action Task Force (FATF) grey list, the Philippine government ordered 44 government agencies to update their policies. As a result, a number of authorities, including the PAGCOR, will be required to review their anti-money laundering (AML) and counter-terrorism financing (CTF) protocols.

Under a Memorandum Circular No. 37, issued by the Office of the President, government organizations will need to address the deficiencies that led to the Philippines’ inclusion in the FATF grey list.

For reference, the Philippines was included in the list back in 2021 for failing to properly counteract money laundering. The lax controls concerning casino junkets and the deficient information sharing between financial institutions were among the chief reasons for the greylisting.

The Memorandum Circular calls for urgent implementation of the National AML, CTF and Counter-Proliferation Financing Strategy (NACS) 2023-2027. In its announcement, the government emphasized its desire to crack down on fraud. The country hopes to exit the FATF grey list by January 2024.

The Philippines Hopes to Exit the FATF Grey List Quickly

The Memorandum prioritizes quick action, in accordance with the NACS and FATF’s International Co-operation Review Group (ICRG) Action Plans. The Memorandum Circular also establishes an ML/TF NRA Working Group that will have nine subgroups dedicated to different aspects of the NRA.

The ML/TF NRA Working Group will be led by the Anti-Money Laundering Council (AMCL), which will also be responsible for issuing guidelines and coordinating with other departments, agencies and private sector entities. The announcement said that funding for the initiative would be allocated from relevant agency budgets, in accordance with the applicable regulations.

The Memorandum Circular takes effect immediately, attesting to the Philippines’ desire to exit the FATF grey list as soon as possible.

Earlier this month, China agreed to help the Philippines crack down on illegal offshore gambling. This followed a recent joint action between the two countries that led to the repatriation of 400 Chinese nationals.

Speaking of that, in September, China joined forces with ASEAN and the United Nations Office on Drugs and Crime for a new initiative that seeks to combat transnational criminal activities.

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Gambling regulations in Peru are about to change. The government released changes in the regulations in the online gambling industry, specifically in implementation and regulation in this industry, on October 13, 2023.

New law implementation

The new rules for remote gaming and sports betting in Peru are regulated by Law No. 31557. The document is called Supreme Decree Nº 005-2023.

The point of new regulations is to allow the licensing regime, which will allow online gambling operators to offer their services in the country. Prior to the final approval, the law was amended by Law No. 31806.

The Bill was signed in 2022, and back then, the government was able to set a 12% tax on net income in the gambling industry. According to that, the government was expecting to earn about $40 million in profit from the gambling industry on a yearly basis. Pedro Castillo, the President of Peru, wanted to approve this in order to “have more resources to meet its economic and social obligations.”

Establishing MINCETUR

However, when the Supreme Decree was approved, the Ministry of Foreign Trade and Tourism, MINCETUR, was in charge of everything related to online gaming and sports betting, including getting the authorization to issue licenses. MINCETUR will be in charge of registering various technological platforms and all of their partners, as well as online gaming programs, live casino games, sports betting terminals all around the country, and service providers related to them.

However, one of the most important duties of the body will be taking care of complying with the advertising restrictions and responsible gaming regulations.

The new regulations will take care of the main technological standards, as well as various restrictions when it comes to gambling ads and responsible gaming provisions.

As Sigma reports, the Supreme Decree will also allow the operators who still haven’t gotten their licenses to have the gap of 30 days, specifically the operators who weren’t licensed on March 9, so they’ll get a second chance to become part of the Peruvian gambling market.

Almost all of these regulations will be effective 120 days after they are released. However, the specific sections have special timelines for all operators and licensees.

It remains to be seen how Peruvian operators will react to these new regulations. However, it is surely a step in the right direction when it comes to strengthening the Peruvian and Latin American markets and opening the door to the popularization of gambling and sports betting in these markets.

Source: Pulis Xerxen, Shirley, “Online gambling regulations published in Peru”, October 16, 2023.

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