There is federal legislation for gambling in Australia, and each State has its own unique policy regarding these activities. The federal law that oversees gambling in Australia is the Interactive Gambling Act, 2001. It outlines rules for both licensing and online gambling in Australia.
In a nation where the gambling industry donates millions of dollars to political parties and pays billions in taxes, controversies are inevitable. Keep on reading below as we go through the most controversial cases in modern Australian gambling history.
Reef Hotel Casino, Cairns
The Reef Hotel Casino in Cairns committed the most recent rule violation The Casino is one of four situated in Queensland. It is claimed that a deal was in place between the Casino Operator and Reef Corporate Services to use its license. In return, it was claimed that the organization was receiving money from the casino. Any such agreement needs to be approved by the Minister for Liquor and Gaming. It has been reported that the Casino Operator will plead guilty to the offense with the maximum penalty for the offense set at only $5,750.
The Star Casino
The Star Casino controversy completely upended the Australian gambling industry. But more crucially, it was in violation of its anti-money laundering requirements and it had deceived the regulator on purpose. Star Casino was hit with a hefty AU$100 million fine. It was claimed that Star’s two casinos were operated in violation of casino regulations, and it was questioned whether or not the firm itself ought to keep its gaming license in Queensland. The new administration promised to be open and to strictly adhere to the law. Additionally, they hope to renew their casino license and resume operations in full force.
Crown Resorts Casino
The largest casino operator in Australia, Crown Resorts, was charged with dishonesty, tax fraud, money laundering, assisting organized crime, and allowing criminals to bet without necessary licensing or legality.
Additionally, it was discovered that Crown Resorts had permitted Chinese visitors to bet using Chinese credit cards. This presented a challenge for two reasons. First off, there is a rigorous limit on the amount that one person can wager in China. Given that there is no such restriction in Australia, Crown Resorts had made enormous profits. In order to stop money laundering and excessive gaming, Australian casinos are not allowed to accept bank cards so Crown Resorts classified these Chinese credit card transactions as hotel services.
Further investigations showed how Crown had been taken over by organized Asian criminal gangs, who converted it into a money-laundering operation while inflicting serious harm on vulnerable gamblers and stealing AU$61 million in taxes from Victoria. Additionally, it was discovered that Crown Resorts permitted players to withdraw their winnings from the casino instantly by utilizing credit cards. This is not permitted and is against the law.
Crown Resorts received a fine in addition to having all of their credit card sales revenue confiscated. Furthermore, all of this led to royal commissions in Victoria, Western Australia, and New South Wales finding Crown Resorts unfit to have a casino license. Additionally, Crown Resorts owns a casino in Melbourne, where only a manager chosen by the government is now allowed to oversee operations. The other casinos at this resort have been declared ineligible to hold a casino license and are currently closed.
Northern Territory Tax Cap
Gambling taxes vary from state to state. Since 2009 online betting companies based in the Northern Territories (NT) have enjoyed a very low tax cap. This indicates that even though NT is Australia’s center for gaming, the operators there pay the lowest rates of tax. The cap was put in place by the NT government to prevent the business from moving to other states, particularly Tasmania. It is felt that gaming businesses should pay their fair share and that the NT government needs to extract more money from these operators in order to reinvest casino revenues back into the community.
The Territory’s Racing and Betting Act 2020 is currently reviewing this tax cap, but sport betting companies are already outraged and threatening to leave the jurisdiction if taxes are raised. Currently, the bookmaker tax in place in the Northern Territory generates about $10 million in yearly revenue.
Norfolk Island Gaming Association Closure
Up until 2016, Norfolk Island, an Australian territory and racing jurisdiction in the Pacific, granted business licenses to respected international firms to conduct operations in Australia. The Australian government stopped its authority to give licenses after it came to light that the country had authorized a corporation by the name of BetHQ to accept bets from Australians.
It was discovered that CitiBet, the biggest unregulated betting exchange in the world, and BetHQ had a white-label agreement together. The investigation of the jurisdiction’s procedures was sparked by the disclosure, and the report that emerged was scathing. Inadequacies in disclosure, a disregard for risks or proper regulation, and grave worries about conflicts of interest that could lead to fraud and corruption were all discovered.
Final Thoughts
These are only a few instances of controversies that have rocked the gaming industry in Australia. But how do these scandals impact each player specifically? How certain can the average gambler be that they are safe? It appears that all issues have been swiftly and fairly settled by the government and relevant agencies. When it comes to protecting their rights and security, each individual may be certain that there is nothing to worry about.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect those of Geek Vibes Nation.
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