The proponents of gambling reform and gamblers’ rights in Australia claim that gambling companies tend to keep millions when local gambling addicts spend their money. Some of the victims of crimes occurring from problem gambling behaviour never get their money back, too.
According to stricter gambling regulation advocates, gambling operators keep the proceeds of crimes committed by gambling addicts, which leaves victims of those crimes with very few options to seek compensation for their losses. Anti-gambling campaigners claim that the system that is supposed to keep them regulated is not working properly.
Nothing more than “empty promises” – this is how the former commissioner for victims’ rights in South Australia, Michael O’Connell, described the restitution orders imposed on convicted gambling-related fraudsters, at least for the majority of people. According to him, even if an effort to satisfy such compensation claims, the sums returned to the victims do not match the sum of the actual loss, not to mention that it does not cover the non-financial damages of the victims, such as the psychological and emotional effects.
Lauren Levin, the director of Financial Counselling Australia’s policy and campaigns unit, also shared that people who suffer from problem gambling behaviour are also being let down by the regulatory and legislative system because no one chose to get hooked on gambling. Ms Levin also highlighted the fact that gambling companies are not forced to return the proceeds of crimes to the innocent victims who actually suffered the negative effects of the crime.
Australian States and Territories Supposed to Regulate Gambling Companies
Australian states and territories are the ones primarily responsible for gambling companies’ regulation. However, these issues are also subject to federal anti-money laundering and counter-terrorism financing legislation.
Under the provisions of those laws, gambling operators are required to report suspicious monetary transactions, including payments exceeding AU$10,000 and money going in and out of the country, to the Australian Transaction Reports and Analysis Centre (AUSTRAC). Under the same rules, gambling companies are also required to investigate their customers’ sources of income, with the regulatory body also able to start investigating the operators in case they violate the aforementioned laws.
According to Ms Levin, the existing gambling legislation is not being used effectively.
For the time being, dealing with money that was supposed to be reasonably suspected to be proceeds of crime is categorised as a criminal offence under the provisions of the Northern Territory’s (NT) Criminal Code Act. In addition, AUSTRAC has also confirmed that AML and CTF pieces of legislation apply to gambling operators, including when it comes to fraud. According to information provided by the CEO of regulatory strategy at AUSTRAC, Peter Soros, gambling companies that did not perform additional due diligence on their customers, who have been exposed to greater risk, could be violating the laws.
The independent Member of Parliament Andrew Wilkie has been urging federal authorities in the country to make sure stricter regulation of the gambling sector is implemented. As reported by Casino Guardian, he recently unveiled a private member’s bill that would provide AUSTRAC with the power to issue compensation orders against gambling operators in case they allowed a customer to place bets whenever the circumstances were suspicious and the company had reasonable grounds to believe that the punter is using stolen funds to gamble.
- Author
Daniel Williams
