As the coronavirus crisis shutdown for entertainment and gambling venues continues across Australia, the Office of Responsible Gambling in New South Wales has urged people to stay away from unlicensed online casinos. The government agency issued a warning about the risks of playing at illegal offshore gambling sites, citing poor customer protections and a lack of regulatory compliance.
The media release was published on 30 April by the Office of Responsible Gambling (ORG) in New South Wales, which sits within the Better Regulation Division of the Department of Customer Service. According to ORG director Natalie Wright, many Australians could be tempted to use the services of unregulated online gambling operators based in offshore jurisdictions as they have no options for playing slots and other casino games legally.
Currently, all casinos, as well as pubs and clubs hosting poker machines are closed as a result of authorities’ efforts to fight the COVID-19 pandemic. The health crisis, which saw all nonessential businesses in the country shut down last month, continues and it is unclear when venues would be allowed to open. On Thursday, NSW Premier Gladys Berejiklian announced that some of the restrictions would be eased starting from Friday, 1 May.
Schools will start reopening in May and people will be allowed to visit family and friends. Some retail outlets will also commence reopening. Berejiklian urged people to be responsible and continue exercising social distancing in these places. The easing of restrictions come as a result of another announcement – that out of more than 7,000 people being tested for coronavirus on Wednesday in the state, only 2 were positive. Still, it is unclear when casinos and pokies clubs would start reopening.
People May Never See Their Winnings from Overseas Gambling Sites
Players who decide to visit offshore gambling sites, which are unregulated and illegal in Australia, “face additional risks” than when using the services of licensed, domestic operators, Wright said. Online casinos based overseas may look legitimate, especially those that feature the Australian flag and native animals. However, they do not meet the regulatory standards imposed by national regulators under the Commonwealth Interactive Gambling Act 2001.
Under the Act, the Australian Communications and Media Authority (ACMA) can ask Internet service providers to block illegal websites and any sites that offer wagering services not licensed by an Australian state or territory. This could include online slots and casino-style games, scratch cards, and synthetic lotteries, as well as in-play betting on sporting events.
According to Wright, the main risks associated with gambling on offshore websites are financial. Players might find it impossible to withdraw their winnings. Their balances may disappear if the casino decides to shut down operations or move. Moreover, the ORG warns people that there have been cases when operators withdraw additional funds from players’ bank accounts without their approval. According to a recent study by AlphaBeta and credit company Illion, online betting in Australia has increased by 67% during the COVID-19 lockdown.
- Author
Daniel Williams
