Australian States Losing Out On Online Gambling Revenues - 12-14-08

December 14 -  Alan Cameron, the former chairman of the Australian Securities and Investments Commission, has urged the government of The New South Wales to reconsider its strict licensing conditions and regulation with respect to online gambling and to keep up online gambling trends, according the a local newspaper article in the Sydney Morning Herald.

The article argues for an overhaul of the betting and racing industry, which has seen a drop in revenue with the rise of online betting. A study performed by the Boston Consulting Group estimated the NSW government was losing AU $14 million a year in gambling tax revenue. The study puts this down to online gambling. The study further estimates a loss of up to AU $27 million for the racing industry. The reports urges the local government to take action but raises a red flag that they should be careful as to not offend any stakeholders in what is obviously a very sensitive area. 

An obvious areas of contention will be to allow betting on politics or the outcome of a court case, for example.

The approach suggested by Cameron is to constitute a new Casino, Liquor and Gaming Control Authority that will determine what can be wagered on, which will include all markets from sports to politics to entertainment and other events.

Cameron is in favor of NSW allowing more betting sites like Betfair top be licensed in the state.

Cameron ordered the study a year ago when Betfair managed to get a Tasmanian license, and later a West Australian license.

"It is becoming increasingly problematic for any state to try operating independently with the entry of corporate bookmakers and the cross-border 'leaking' of revenue," Gaming and Racing Minister Kevin Greene said when making the Cameron review recommendation public this week.

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