NT gambling laws are being overhauled. Here’s why that will have national consequences

by Admin
March 18, 2024

New laws governing the conduct of gambling companies are expected to be debated, and passed, by the Northern Territory parliament this week.

But while the NT is Australia’s least populated jurisdiction, these laws will govern betting companies across the country.

The reforms have been criticised by anti-gambling experts, and there are allegations that the NT’s regulator of gambling and betting is suffering from “regulatory capture”.

Here’s what you need to know.

Why do betting companies like the territory?

The NT has become the de facto place for wagering service providers (WSPs) to be based due to its low taxes and fees, according to a federal review of the regulation of the gambling industry that concluded last year.

One submission described the NT’s governance of these companies as a “light touch”.

The vast majority of online betting companies choose to base themselves in the Northern Territory.(ABC News: Ian Redfearn)

Overall, 32 sports bookmakers and two betting exchanges — which collectively earn $50 billion a year — are regulated by the NT Racing Commission.

And the NT, with an economy of just $32 billion, affords these companies more freedom than other jurisdictions.

One of those freedoms includes allowing gambling companies to offer inducements such as vouchers and credit to attract customers.

What are the proposed reforms?

The Racing and Wagering Bill 2024 will reform the NT Racing Commission into the Racing and Wagering Commission.

Complaints about the conduct of gambling companies by Australian customers are heard by the racing commission, and these responsibilities will be transferred across to the new commission.

The reforms are set to be debated this week in NT parliament, and they’re likely to pass given the government’s overall majority in parliament.

The territory’s Labor government said the reforms would modernise “very out of date” laws.

They specify that WSPs must have a physical presence, such as an office in the territory, if they wish to be regulated by the NT.

The proposed law also threatens WSPs with a series of offences, including fines of up to $440,000 if they fail to comply with a condition of their licences.

Decisions made by the commission or its director can be reviewed in the NT Civil and Administrative Tribunal.

A new Racing and Wagering Fund levy will be introduced on bookmaker profits, but the NT government said it hasn’t yet decided what rate this new tax will be.

What is happening at a federal level?

The late MP Peta Murphy led the review into Australia’s gambling framework, which heard several submissions highly critical of the NT’s regulation.(ABC News)

The federal review recommended the regulation of all gambling across Australia be taken away from states and territories and rested with the commonwealth.

It also recommended the banning of inducements, like those allowed in the NT, and phasing out online gambling advertising and sponsorship.

The report, published in June 2023, heard that the NT’s regulatory process had been “captured” by the industry and was “light-touch” in its treatment of WSPs.

Prime Minister Anthony Albanese said he was “examining” the review, and pointed to steps already taken such as tougher rules around advertising, and restricting the use of credit cards for online gambling.

“There’s more to do and we will be doing more,” he said.

What do stakeholders say?

The peak body for the online wagering industry, Responsible Wagering Australia, said it supported strong sanctions on providers that broke the rules.

“RWA members offer world-leading consumer protections and we support measures by governments that bring other wagering providers up to the standards that our members already operate on,” chief executive Kai Cantwell said.

Carol Bennett from the Alliance for Gambling Reform says the NT government’s reforms are too weak.(ABC News: Tamara Penniket)

But the Alliance for Gambling Reform chief executive Carol Bennett said the NT government had watered down its proposed reforms during the consultation process.

Ms Bennett said 28 gambling companies and just one harm-minimisation organisation were consulted over draft laws, and penalties were watered down based on that feedback.

She said the federal government urgently needed to step in and take over regulating the industry.