The regulatory body that monitors almost all sportsbooks in the territory of Australia has admitted that monetary penalties for serious wrongdoings have little to no impact on a flourishing gambling sector even if they amount to tens of thousands of dollars. Currently, the country’s gambling industry is estimated at almost AU$50 billion annually.
Apart from that, the Northern Territory Racing Commission (NTRC) has also informed a parliamentary inquiry that the News Corp-linked betting platform Betr has received a serious warning that its operating permit would be cancelled or suspended if it violates harm-minimisation policies once again.
As previously reported by Casino Guardian, almost all sports betting operators, apart from Tabcorp, are based in the Northern Territory for historical tax purposes. This basically means the companies are put under the regulation and monitoring of the local gambling commission. Most of them are multinational companies, such as bet365, Ladbrokes, and Sportsbet.
Alastair Shields, the chair of the NT Racing Commission, explained for the parliamentary inquiry into online gambling harm that relatively low fines issued by competent authorities are an issue that would, hopefully, be taken into consideration by the Government of the Northern Territory the 5-year review of the territory’s gambling laws is complete. As shared by Mr Shields with the inquiry, most gambling operators have generated significant turnovers and the fines imposed on them would not have a noteworthy impact on their performance.
Recently, Betr faced a monetary penalty of AU$77,000 for getting into contact with a person who had joined the self-exclusion list and encouraged them to open a new account with the company around its official launch in 2022. The contact details of the person were retained by someone who had previously dealt with them at another gambling operator.
No Gambling Operators Suspended by the NT Racing Commission Since 2018
Another gambling company, Bet Nation, suffered a fine worth AU$13,770 by the NTRC after it sent email advertising communications to a total of 7,713 people, including ones who have included their names on a self-exclusion register.
The Northern Territory Racing Commission has not suspended any gambling companies since 2018, although there have been a few serious violations of the local gambling legislation. According to some commissioners, the threat to cancel or suspend a company’s operating permit had a positive effect on the operator, as the latter had improved its behaviour.
According to reports, several gambling operators have threatened to leave the Northern Territory’s market in case the local Government raised taxes. For the time being, the Government of the Northern Territory, which recorded a deficit of AU$1.1 billion in 2022, receives licensing fees from the operators. Hundreds of gambling companies’ employees are also based there.
The NTRC has faced criticism from various campaigners who claim that the regulatory body has not kept pace with the significant growth of the gambling sector and remains heavily underfunded.
About a decade ago, sports betting operators in the territory generated an overall turnover worth AU$5.7 billion, which was boosted to AU$48.3 billion because of the rising popularity of mobile applications, high-profile advertising, and official partnerships with major sporting codes. One of the Northern Territory Racing Commission’s critics has described the territory as a small jurisdiction, so there were close relations between the local gambling industry, political figures, and public servants. Despite these relations, the current boss of the NTRC denied any conflict of interest.
- Author
Olivia Cole
