Australia
Bookmakers warn of “tough times ahead” as regulators crack down on Australian gambling
Australia has the world’s largest gambling spend per head. The Melbourne Cup celebrations cause bookies to warn that party could soon be over as political pressure mounts.
Australia hosted its 157th Melbourne Cup on Tuesday, and parties following the prestigious race event stretched into the early hours – particularly from those of the Emerald Isle. Irish runner Rekindling galloped past the post and claimed the victory, with the nation claiming the top three finishers.
One lucky punter scooping AU$1 million ($767,000 USD) in a TAB promotion and another pulling $151,255 ($115,000USD) from a $50 trifecta wager.
But while punters and the race industry celebrate long into the night, bookmakers have warned that the party could be over for the nation’s betting industry.
Gambling faces a significant backlash from lobbyists and politicians, who are concerned that having the world’s largest gambling spend is also creating the world’s largest gambling problem.
Huge gaming market sparks fears over player safety
Australia has a relatively small population and a well-established betting scene, but it is not as lucrative a market for operators as Las Vegas, Macau or Singapore. However, the AU$23 billion (US$17 billion) market sees the highest spend per person per year, with the average annual loss hitting US$990 in 2016.
A Household, Income and Labour Dynamics survey in August revealed that there are 200,000 problem gamblers in Australia, while figures from the Australian Gambling Statistics Bureau show a spend of $1,241.86 per adult per year.
This is a sharp 7.7% increase on figures from 2014-15, suggesting that gambling spend is rising fast.
While increased spend is usually good for business, bookmakers and casino operators face a backlash from anti-gambling lobbyists who feel there is too little regulation in the gaming industry. To appease campaigners and lessen the general public’s fears, politicians and regulators are trying to crack down on the gambling industry with new taxes and laws.
Bookmakers warn of hard times ahead
The two key measures introduced to curb problem gambling rates are changes to advertising rules and a new point of consumption tax, applied to net wagering revenues and gambling losses at a rate of 15% in South Australia this summer, with other states set to follow.
Bookmakers have warned that the tax could severely reduce profits and could even make operating within the nation an impossibility in the future.
The Financial Times reports that foreign operators William Hill, Bet365 and Ladbrokes have posted losses since they entered the Australian market, while native operator Sportsbet says a nationwide roll-out of the consumption tax could cost the company half of its pre-tax profits.
“There are tough times ahead… This is an earthquake – a seismic event for the industry,” warned Sportsbet CEO Cormac Barry.
Barry’s comments come as another major change takes effect. Advertising laws in Canberra will be changed to prohibit sports bet advertising on television during matches, and before 8.30pm.
Rules may also be introduced which prohibit the promotion of free bets, deposit bonuses and other rewards for players who sign up.
If the laws have an impact, they could be rolled out nationwide – which would severely limit the reach of gambling advertisers and cut them off from their key audience: sports fans.
Calls for pokie reform go unheard
While anti-gambling campaigners will be pleased that advertising laws are changing to limit vulnerable people’s exposure to them, the changes don’t go far enough for some.
Critics say that the biggest danger to players is not the sports bet industry, but the poker machines which are found in clubs and casinos all over the country.
Similar to the UK’s recent ruling on fixed odds betting terminal stakes, campaigners want maximum pokie stakes reduced to AU$1 per person.
The recent Household, Income and Labour Dynamics in Australia survey found that spend is significantly higher on poker and pokie machines than on sports or race betting – as is the average loss. If Australia wants to make an impact on its problem gambling rates without harming its valuable betting industry, it might need to address the national love of pokies before targeting sports bets.
Australia
Crown Reinstated at Sydney Casino
The NSW Independent Casino Commission has found Crown Sydney suitable to retain its casino licence after nearly three years of intensive remediation.
Chief Commissioner, Philip Crawford, said Crown has come a long way and must now demonstrate its long-term commitment to maintaining suitability.
“The NICC is confident the Crown we deemed suitable today has a strong model to keep operating into the future,” Mr Crawford said.
The NICC’s suitability assessment established that Crown Sydney has fundamentally reformed its business and is operating the casino within the objects of the Act, the requirements of the suitability deed, and in compliance with its regulatory obligations.
In addition to proving it can run the casino lawfully, Crown has remediated its business in other meaningful ways such as building a culture of transparency and accountability across its integrated resort.
“Hard work and transformation aside, the NICC has not forgotten the level of misconduct exposed in 2021 when Crown was found unsuitable,” said Mr Crawford.
“Crown Sydney has ongoing work to reach steady state and it must continue to lift standards and maintain its cultural transformation.
“There is and will always be room for improvement, but Crown is a changed business that is looking toward the future.
“Likewise, the NICC is a changed regulator with enhanced powers, a singular focus on casinos, and a mandate to address the risks of harm.
“This decision is a positive outcome for Crown Sydney, its staff, and the community – who can be sure the NICC will use all of its powers to keep the casino in check.”
In addition to the implementation of hundreds of new internal controls, the Bergin-based reforms have been reflected in a new licence and new regulatory agreement between Crown Sydney, the NSW Government and the NICC.
These agreements include updated settings, such as the removal of fetters to the NICC’s powers, as well as previous compensation trigger clauses that are no longer part of the casino legislation.
Mr Crawford said: “Crown cannot disregard the responsibility and privilege that comes with holding a casino licence. Crown Sydney’s ability to provide a destination hospitality and entertainment venue underpinned by the restricted gaming facility is contingent on its steadfast commitment to continuing suitability, accountability and compliance.”
Australia
Tabcorp Partners with OpenBet’s Sportsbook Technology to Propel Growth and Enhance User Experience
OpenBet’s robust betting engine and sophisticated trading system to enhance Australian operator’s user experience and operational efficiencies
OpenBet, a leading content, platform and service provider to the sports betting industry, has been selected to supply its scalable betting engine and advanced trading system to Australian wagering giant Tabcorp as the tier-one operator pursues ambitious growth plans.
OpenBet will integrate a series of online and retail products including its fixed-odds betting platform and trading system for its world-class content portfolio to help amplify the offering for Tabcorp’s flagship brand, TAB.
Underpinned by a dedicated excellence team working with TAB for continuous development and innovation, OpenBet’s pioneering technology and services will provide improved agility, scalability and speed-to-market for new and differentiated products that will redefine the TAB user experience. Tabcorp will also benefit from enhanced operational efficiency and streamlined processes through OpenBet’s proven solutions.
As Australia’s largest gaming and betting operator, Tabcorp has a rich history of providing market-leading products to its customers. With more than 3,000 employees, the company continues to grow and aims to further increase its market share over the coming years.
OpenBet’s expertise in operating within some of the world’s strictest regulated markets was a major factor in Tabcorp’s decision in selecting the company as its latest technology provider. Integrating OpenBet’s globally respected platform and products within Tabcorp’s technology ecosystem comprising of proprietary capabilities across trading, digital experience and data is a perfect fit for market leading innovation, enhanced operational capability and delivering an unparalleled user experience to Tabcorp’s customers.
This deal strengthens OpenBet’s reputation as a trusted provider to the global sports betting industry. It currently processes almost half of all digital sports bets placed in the Australian market and with this deal will significantly increase that and, for the first time, bring our retail sports betting capability to Australia. Coupled with Tabcorp’s clear progress on accelerating its transformation and innovation with a focus on agility, product delivery and customer experience, this has the ingredients for a great partnership.
“Being selected by Tabcorp to augment its user experience is an exciting move for us and further cements our position as a trusted provider of robust, hybrid products that drive growth,” the Chief Commercial Officer for OpenBet, Cathryn Lai, said. “We’re looking forward to working alongside the TAB team and providing it with tailored products and services that will usher in a new era for its sportsbook offering. We have no doubt that the operator’s customer base will benefit from an enhanced experience through our unbeatable technology and trading services.”
“We’re thrilled to be strategically partnering with OpenBet to enable our growth ambitions and beyond,” the Trading General Manager for Tabcorp, David Beirne, said. “The combined strengths of Tabcorp’s category expertise and internal capabilities and OpenBet’s advanced core creates a market leading relationship that will lead to increased customer engagement, market share and sustainable profitability.
“This partnership will propel Tabcorp’s trading capabilities to the top of the market as it will allow Tabcorp to utilise OpenBet’s cutting-edge technology to deliver a first-class digital and retail experience for our customers at pace in exciting and innovative ways.
“This partnership is a significant step forward in modernising and supporting our ambitious plans to deliver the next generation sports betting user journey.”
Australia
Venues Warned to Play by the Rules on ANZAC Day
Liquor & Gaming NSW is urging licensed venues across the state to plan ahead and have proper measures in place to ensure safe and responsible ANZAC Day commemorations.
Pubs and clubs can face additional challenges on April 25 that come with managing larger than normal crowds and the playing of two-up.
Two-up was a popular game among World War I veterans and, while illegal as an unregulated form of gambling most of the year, is legally played every ANZAC Day, Remembrance Day and Victory in the Pacific Day in their memory.
Liquor & Gaming NSW Executive Director Regulatory Operations, Jane Lin, said inspectors would carry out checks of licensed premises in Sydney and regional areas on ANZAC Day to ensure compliance with the state’s liquor and gaming laws.
“Two-up is a great Australian tradition and a way for people to come together at pubs and clubs to enjoy the ANZAC spirit,” Lin said. “While venues do not need a permit to host two-up, they are encouraged to fully understand and observe the traditional rules of the coin-tossing game.
“Licensed venues are reminded to properly manage potential risks linked to larger crowds, increased rates of intoxication, gambling disputes, extended high volume trading and special ANZAC Day liquor promotions.”
Venues’ advertising and promotions must align with liquor promotion guidelines.
More information about ANZAC Day in New South Wales is available at https:/ /www.NSM.gov. au/about-nsw/anzac-day-nsw. Two-up rules can be found at https:/ /www.LiquorAndGaming.nsw. gov. au/__data/assets/pdf_file/0007/858562/fs3098-two-up-factsheet. pdf.
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