Online poker faces long fight to get reinstated in Australia

October 19, 2017 12:47 pm.by Sarah O'Brien

Online poker report Australia

Online poker could be legalised in Australia, following the “complete implementation of the National Consumer Protection Framework.”

The Environment and Communications References Committee released the report on the Participation of Australians in Online Poker on Wednesday afternoon, and while there is strong support for a regulated online poker industry, it has a long way to go before it becomes a reality.

Included in the report, is the recommendation that legalising online poker should only be considered once the government enacts the National Consumer Protection Framework.

The Framework, which includes a national self-exclusion register, is a response to the illegal offshore wagering review by the former NSW Premier Barry O’Farrell and is expected to be implemented by the end of the year.

The only other recommendation the Committee includes in the report is the Department of Social Services should look into the impact of regulating online poker, “including the relative benefits and harms associated with prohibition and legalisation.”

While the Committee supports the prohibition of online gambling, it appears that it is open to legalising online poker provided the appropriate research is undertaken.

Committee Chairwoman, Senator Janet Rice, states that the evidence presented to the committee reveals “the majority of people who engage in online gambling are able to do so safely and without experiencing gambling-related harms”, but she adds that “this is not the case for all.”

Rice reveals that many argued online poker “differs both in its features and impact on consumers” and believe “it should be regulated differently to other forms of online gambling.”

“In particular, it was highlighted that many consumers view online poker as a skills-based game, or at least, a game of mixed skill and chance,” she said.

“However, it was also indicated that very little research has been conducted on the potential benefits of online poker.

“The committee is of the view that any claims of benefits derived from engaging in online poker should be approached with caution.”

Online poker in Australia has always been considered a prohibited activity under the Interactive Gambling Act 2001. However, the legislative language allowed offshore online casino operators and poker room companies to accept Australians.

Following the O’Farrell review, Minister for Human Services, Alan Tudge, introduced the Interactive Gambling Amendment Bill 2016, which targeted offshore gambling operators. Online betting sites licensed in Australia also faced reforms, but were exempt from the ban.

Many argued that the prohibition of poker was a by-product in the new reforms, including Senator David Leyonjhelm, who spearheaded the Senate inquiry into online poker.

While the online poker community thought the inquiry would delay the IGA Bill 2016, the Senate passed the new gambling reforms in August, and online poker operators left the market in September.

The inquiry continued, with several submissions from parties who supported legalising online poker, including the Australian Online Poker Alliance (AOPA).

The AOPA, created by Joseph Del Duca, fought hard to get online poker exempt from legislative prohibitions.

The report notes the benefits of legalising online poker, including the argument that it is considered to be a different form of gambling.

“Some of these benefits include lower costs in comparison to other forms of gambling such as land-based poker, the ability to derive an income from poker, and personal and social enjoyment associated with engagement in leisure activities,” the report states.

The recommendation to research the benefits and harms of online poker is likely a result of the evidence provided by Dr Sally Gainsbury. She revealed that there was not enough research into problem gambling among poker players alone in her submission.

The report also acknowledges Dr Gainsbury’s suggestion that online poker players could derive income from playing online poker.

However, the committee received several submissions supporting the prohibition of online poker, including the Salvation Army, too.

According to the report, parties against a regulated online poker industry argue prohibition is a harm minimisation measure, though, they did encourage “further research in order to ensure the implementation of evidence-based regulatory models.”

Senators Leyonhjelm and Cory Bernardi both made additional comments in the report, stating that they support “the legalisation and regulation of online poker in Australia.”

In the report, the two crossbenchers argue that online poker is different to other forms of online gambling as it requires a higher level of skill.

“It does not pose the risks of harm that other forms of gambling are argued to involve,” they state in the report.

They recommend legalising online poker by following the UK Gambling Commission model, which “involves issuing licences specific to each kind of gambling” as it “enables it to address risks to gamblers, sport and consolidated revenue in a logical and effective manner.”

Senator Leyonhjelm has previously said Australia needs a regulatory agency dedicated to online poker, to ensure the government creates a regulated industry the right way.

“I’m not sure ACMA is an appropriate regulatory agency and would like to see the Government consider something similar to the UK Gambling Commission,” the Senator said last month.

“Australian online poker players deserve to have a safe, regulated environment in which to enjoy their pastime and not be forced into using offshore sites.”