The Debate Over Australia’s Online Gambling Regulation
Australia’s approach to regulating online gambling has come under intense scrutiny, with a recent legislative proposal facing criticism as a “damage control exercise” from key stakeholders in the gambling harm prevention sector. The bill, introduced by Northern Territory Attorney-General Marie-Clare Boothby, aims to amend the NT Racing and Wagering Act, which governs the NT Racing and Wagering Commission (NTRWC). Despite its lack of full-time staff, the NTRWC has effectively become the country’s de facto regulator for online gambling, overseeing 52 bookmakers, including major names like Sportsbet, Bet365, and Ladbrokes.
The Role of the NTRWC
The NTRWC’s unique position stems from the fact that many online bookmakers are licensed in the Northern Territory for tax purposes. This arrangement has led to significant concerns about conflicts of interest within the commission. Recent investigations by Four Corners and ABC News NT have highlighted these issues, revealing that several past commissioners had personal ties to the industry, including owning or part-owning racehorses. Additionally, the chair of the NTRWC has accepted hospitality gifts from bookmakers, raising questions about impartiality.
The NTRWC has also faced criticism for its slow response to complaints from punters against bookmakers. This has led to calls for a national regulator to take over the responsibility of overseeing online gambling, with a 2023 federal parliamentary inquiry recommending this change among 31 other recommendations aimed at reducing the harms associated with online gambling.
The Proposed Legislation
Despite these recommendations, the federal government’s response to the inquiry did not include the establishment of a national regulator. As a result, the NTRWC will continue to regulate some of Australia’s largest online bookmakers. Ms. Boothby defended the bill, stating it was “about modernising governance and licensing to provide long-term certainty for industry, security for investors, and growth in racing and wagering.”
The proposed changes would remove the NTRWC’s responsibility for regulating the territory’s racing and greyhound industries, focusing its efforts solely on regulating NT-licenced bookmakers. New conflict-of-interest provisions are also included, prohibiting commissioners from holding betting accounts or owning racehorses. They would also be required to inform the NT racing minister within 10 days of any direct or indirect interest that could conflict with their role.
Reactions to the Bill
Following the introduction of the bill, it was referred to the NT Legislative Scrutiny Committee, which provided an eight-day period for public feedback. Six submissions were received, most of which recommended changes to the bill. The Alliance for Gambling Reform (AGR) criticized the legislation as a “kneejerk, reputational response” rather than a genuine commitment to reform. The AGR argued that the bill was introduced after national scrutiny exposed the NTRWC as a part-time, under-resourced body that is structurally unsuited to its role.
The AGR suggested that the NTRWC should be resourced as a full-time regulator, funded through existing NT government wagering revenue streams. It also called for a public register of interests for commissioners and mandatory public reporting of complaints received and resolved by the NTRWC. Additionally, the AGR proposed that the handling of complaints should be overseen by an independent watchdog, with published reasons required for any serious complaints that do not result in enforcement action.
Support from Major Bookmaker
Only two submissions — from Sportsbet and the Australian Christian Lobby — recommended the bill be passed in its current form. Sportsbet praised the amendments, stating they “appropriately reinforce governance arrangements, protect the integrity of racing oversight, and ensure that the regulatory system functions efficiently and as intended.” The company emphasized the importance of maintaining confidence in the racing system and providing a stable platform for future development.
The five-member Legislative Scrutiny Committee, which the NT government controls through a three-member majority, is reviewing the submissions and will prepare a report for parliament, which next sits in May. The outcome of this review will determine the future of the NTRWC and its role in regulating online gambling in Australia.
