Nick Xenophon Introduces Gambling Amendment Bill In The Senate

Home » Poker News » Nick Xenophon Introduces Gambling Amendment Bill In The Senate

Thursday, November 26th, 2015 | Written by Charles Washington

On November 24th, South Australia Senator Nick Xenophon introduced his Interactive Gambling Amendment Bill (2015) into the Senate, a piece of legislation that is based upon the findings of Financial Counselling Australia (FCA), and its influential report entitled “Duds, Mugs and the A-list“. If it eventually passes, the bill will reform Australia’s online gambling sector, and help better protect consumers by restricting gambling inducements, introducing a National Self-exclusion Register, and most importantly for the purpose of this article, end betting with money credited to punters by the gambling companies. Commenting on his bill, Senator Xenophon explained:

“Online gambling, in particular online sports betting, has grown exponentially over the past 10 years in Australia and with it an exponential increase in the harms associated with problem gambling… There is currently an absence of sensible measures to ensure online sports betting is conducted in a responsible manner. This Bill seeks to fill these gaps in a way that offers protection for those who have difficulty controlling their gambling but will have minimal impact on so-called recreational gamblers.”

Sports Betting On The Rise

Sports betting is on the rise in many parts of the world, and in Australia, the industry is especially fast growing. With people now able to easily place bets from smartphones, more sports fan are placing wagers on matches, and in some cases, they’re doing so on credit. This has led to many concerns among lawmakers and financial counsellors in Australia who are calling for a ban or at least regulations on sports betting credit.

How Sports Betting Credit Works

With sports betting credit in Australia, operators allow gamblers to bet without paying up front. There is no credit check necessary to receive the credit, and in most cases, there is no limit to how many bets a player can make on credit. At the end of the month or at the end of another set billing period, the player receives a bill for total monies owed. The operators do not charge interest or fees, so they are not bound by any of the laws governing fair lending in Australia.

Objections to Sports Betting Credit

Those who object to credit extensions for sports betting have a number of issues with the practice, which include:

– Worries About Impulse Betting: Many people argue that being able to place bets any time without having to consider the total cost of losses encourages people to bet without thinking. There are worries that this contributes to gambling addiction, a problem which some say is on the rise in Australia.

– Concerns About Unqualified Lending: Some critics of sports betting credit feel that the practice could be continued if operators actually ran credit checks and only extended credit to those who had a demonstrated ability to pay.

– Privacy Concerns: There are also concerns that sports betting operators are not taking the necessary steps to protect the identities and financial information of borrowers because they are not required to comply with Australia’s privacy laws governing lenders.

– Worries About Predatory Lending Tactics: Some sports betting operators are reportedly partnering with predatory payday lenders to offer loans. In these cases, players are directed to other websites to apply for fast loans with very high interest rates.

Who are the Biggest Critics?

On the legislative side of the debate, the most outspoken critic of the sports betting industry in Australia is Nick Xenophon, an independent Senator. On the 24 November, he subsequently introduced legislation designed to completely ban credit betting in the country, and as he explains:

“If it’s offered online by the provider, it makes it much easier for impulse betting, for chasing your losses. If you have to go and borrow money, take out a loan — it doesn’t allow the fueling of the gambling addiction.”

Financial Counselling Australia, a professional group of financial counsellors, has also criticized the practice of credit extension numerous times, most recently in their report called, “Duds, Mugs and the A-list.”

The Future of Sports Betting in Australia

The Bill introduced by Senator Xenophon includes measures to ban television gambling ads during sports broadcasts and G rated (suitable for all ages) times; organize a national ‘opt out’ scheme; prohibit micro-event betting; and, of course, place restrictions or a complete ban on credit. If the bill passes, how quickly the reforms will be made remains to be seen. It all depends on how much support Nick Xenophon is able able to drum up from his peers.