To be classed as gambling in Australia, an activity must entail the wagering of money or other valued consideration of real-world value on the outcome of an event decided entirely or partially by chance, with the goal of obtaining a prize. In each Australian state and territory, ‘trade promotions,’ which are free-to-enter competitions for the promotion of trade, are also regulated under gaming regulation. These contests are subject to particular limitations, and in some jurisdictions, they can only be held with the approval of the relevant regulator.
Betting & Gambling Regulations are Different
Fantasy sports providers have been operating in Australia for a number of years. Initially, they were controlled as a type of trade promotion, but today they are classified as a sort of bookmaking by authorities. In Australia, there is no particular legislation regarding ‘pool betting.’ Totalisator operators are awarded exclusive licenses in all Australian states. These operators are allowed to accept bets on a specific event, which are subsequently added to a pool and paid out based on the number of winning bets.
The Corporations Act of 2001 regulates spread betting and financial product betting (Cth). Operators must acquire an Australian Financial Services Licence in order to operate lawfully. These goods are governed by a separate set of rules than gambling products; nevertheless, in some cases, a sports betting license can be obtained. All jurisdictions in Australia have a general prohibition on the conduct and promotion of gambling. Gambling operations that are performed under a license are excluded from the law. Among these activities are Lotteries; wagering and sports betting; electronic gaming machines, slot machines, or ‘pokies’; and land-based casinos with casino games such as immersive roulette, poker, baccarat, and blackjack.
The Approach to Gambling on a Payment Level
The Australian federal and state governments’ paternalistic approach to the regulation of gambling services is a reaction to worries about the negative societal effects of gaming. However, gambling has long been a part of Australia’s culture and identity, and it is well-established in the national psyche, alongside racing and sport. The legislative framework in existence today began with state and territory-based gaming control in the early twentieth century.
Despite the ongoing conflict between the economic returns provided by the gambling sector to state and territory governments, as well as sporting and racing bodies, and the pressure on governments to take action to reduce problem gambling behavior, the industry has thrived since the introduction of online wagering in the late twentieth century.
Furthermore, neither federal nor state and territory gambling regulations in Australia allow for the use of cryptocurrencies as a payment method in conjunction with online gaming services. The NTRC, on the other hand, has made it illegal for any of its licensed online wagering businesses to accept bitcoin as payment for wagers placed with them.
Why Gambling Will Always Thrive in Australia
No matter how we look at it right now, the government is unlikely to impose the restrictions on the iGaming sector despite such a large interest from the general public. This is simply due to the amount of taxes that these businesses contribute to the local economy every year. According to Statista, just in 2018, the local government raised over $6 billion Australian dollars from the gambling sector alone. Naturally, that would have gone down during the pandemic, but that just shows how many projects are directly financed by this behemoth of an industry.
It is extremely unlikely that the Australian government decides to forego such a substantial stream of revenue in exchange for pretty much anything. Unless an alternative, just as the profitable entertainment sector is set up, gambling will continue to be a part of every Aussie’s life for the near future.
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