Online wagering and gaming in the Digital Economy

Transcription

1 Online wagering and gaming in the Digital Economy 1

2 01. Key Definitions Online wagering Betting on: Racing Sport Online gaming Poker Casino 14% table games Lotto Bingo Keno Games of skill 86% Gaming machines slots 2

3 02. Top-line Point #1 We are gambling but we are not the pokies 14% 86% 3

4 03. Top-line Point #2 On the internet, prohibition doesn t work 14% 86% 4 4 4

5 04. Responsible Gambling Safer for gamblers than the pokies Responsible Gambling Code of Conduct Self Exclusion Self Assessment Precommitment Counselling Referrals Staff Training 80% of problem gamblers are pokies players Productivity Commission, Inquiry into Gambling Report,

6 05. Responsible Gambling Account-based = Tracking of all players Identity Secure Funds Location Betting Patterns Certified 100 points ID Prohibits minors and problem gamblers Ensures excluded gamblers can t bet Source & destination of funds Complies with all AML requirements IP address and computer ID for every bet Real time monitoring of bets and betting patterns Post-event review of unusual or large payouts 6

7 06. Australia s online wagering industry Corporate Bookmakers / Betting Exchanges TABs (including online wagering) 7

8 07. Australia s online wagering industry Wagering Revenue Market Share 2011 Corporate Bookmakers/ Betting Exchanges 14% 86% TABs Sources: Company reports, Australian Racing Factbook and management estimates 8

9 08. Australia s online wagering industry Key facts (Corporate Bookmakers & Betting Exchanges only) Employment No. 14% of Customers Product Fees Paid TaxaCon Paid employees 1.7m Australian $100m pa 86% $100m+ pa 9

10 9. Internet changes everything Driven by: New Devices Faster broadband speeds Nearly ubiquitous high speed wifi Better User experience Relatively low start up costs Note this section is heavily borrowed from a presentation by Mary KCPB 10

11 10. Re-imagination of Newspapers THEN Printed Newspapers, sold via newsgents NOW Download newspaper straight to your ipad 11

12 11. Re-imagination of Books THEN Piles of Print Copies NOW (Amazon Kindle / Apple ibooks) 12

13 12. Re-imagination of Yellow pages THEN Big Heavy Printed Business Listings / No Reviews / No Easy Search Feature NOW (Yelp ) User Reviews / Pictures / Recommendations / Location-Aware / Easily Searchable 13

14 13. Re-imagination of Music THEN Buy Albums + CDs in Stores / Playback via Dedicated Players NOW (Spotify ) Discovery of Music Through Friends + Experts / Instant On-Demand Streaming on Internet- Enabled Devices 14

15 14. Re-imagination of Video THEN Physical Retail / Rental Stores NOW (YouTube / Netflix ) On-Demand / Instant Streaming / Accessible Everywhere 15

16 15. Re-imagination of Recruiting/Hiring THEN Job Fairs / Campus Recruiting Events / Paper Resumes NOW (LinkedIn) Online Resumes / Social Relevancy For Recruiters / Searchable Skills Sets / Endorsements / Recommendations 16

17 16. Re-imagination of Sports Betting THEN At the local betting agency or at the track NOW On your mobile device 17

18 17. Smart Phone penetration forecasts Australia has the second highest smart phone penetration in the world Australian smart phone penetration forecast to increase significantly through to 2015 Penetration % millions % 70% 62% 53% 39% % 80% 70% 60% 50% 40% 30% 20% 10% (e) 2012 (f) 2013 (f) 2014 (f) 2015 (f) 0% Telsyte Australian Smartphone Study 2011 Smartphone users (millions) PopulaEon penetraeon of smartphones (%) 18

19 18. AU Tablet Penetration Forecasts Australian population penetration of media tablets (%) 67% 55% 43% 36% 26% 15% 3% Source: Telsyte Australian Research

20 19. Gambling in Australia Australia s Legal Gambling Market Illegal Online Gaming Market Lotteries & Other Online Poker Wagering $2.3b 12% $2.8b 15% $10.5b 55% $249m $3.5b 18% $541m Casinos EGMs Online Casinos Source: Productivity Commission Report into Gambling

21 20. Wagering Turnover Online growth in wagering turnover has come at the expense of offline turnover eg Retail / TABs etc 25,000 20,000 $19.4b $20.1b $21.9b $22.6b $23.5b CAGR s $M Turnover 15,000 10,000 17,058 17,092 17,978 16,697 16,374 Total Offline +4.8% -1.0% 5,000-5,881 7,089 2,371 3,001 3, Online +31.5% Online Wagering Offline Wagering Source: Industry Estimates 21

22 21. Online Gambling by Australians What does the IGA prohibit? Online Bingo Live Online Wagering on Sport Online Slots Games of Skills Lotteries Wagering on Racing Wagering on Sport (pre-commencement) Online Tournament Poker Online Cash Poker Online Keno Online Casino Table Games 22

23 22. Size of Overseas Online Gambling Spend Amounts Spent by Australians on Overseas Gambling Websites $92m 5 Year Trend $541m $248m $40m Wagering Casino Poker Bingo Online Gambling Spend Onshore and Offshore ($m) Wagering Onshore Bingo Offshore Wagering Offshore Poker Offshore Casino Offshore 541 Source: H2 Capital & Productivity Commission 23

24 23. Australians are exposed to unregulated foreign websites 24

25 24. Offshore sites deliberately target Australians 25

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30 25. Unregulated, foreign and risky sites 30

31 26. Poker in the Au App Store too Zynga Poker on iphone Buy credit to bet directly via your itunes account 31

32 27. Or buy your chips here 32

33 28. Cash in your chips here just like real cash poker 33

34 29. In-play (or live) sports betting Placing bets after the commencement of a sporting event 34

35 30. Foreign sites offer online in-play betting to Australians 35

36 31. Foreign sites offer online in-play betting to Australians 36

37 32. AFL in-play betting foreign sites targeting Australians 37

38 33. Risk to integrity of sport 38

39 34. State league soccer In-play betting on foreign sites 39

40 35. Its easy to select the best offshore bookie! 40

41 36. Regulatory Models 3 Options Maintain Status Quo Internet Filtering (Blocking) More Regulated Market in Australia IGA continues to be ineffective Billions of dollars gambled with illegal offshore providers Australians exposed to unscrupulous overseas companies Absence of strong regulatory model and harm minimisation mechanisms Risk that problem gambling will increase Risk to integrity of sport Take action against companies illegally offering prohibited services to Australians Combination of internet and payment blocking However Unlikely to have material impact as shown by overseas examples (eg USA) Provide Australians who are already gambling online with safe and secure alternative Ensure strong regulation and effective harm minimisation measures Minimises problem gambling Platform neutrality for live betting Protect integrity of sport Significant taxes and jobs 41

42 37. IGA Review Process IGA Review announced May 2011 DBCDE announced Terms of Reference for review August 2011 Submissions lodged by 21 October 2011 Interim Report issued by the DBCDE 29 May 2012 Interim Report Recommendations Improved harm minimisation minimum standards Improved enforcement of IGA prohibitions Enhanced education and awareness Aust sites permitted to offer online in-play betting Total ban on micro betting 5-year tournament poker trial

43 37. IGA Review Process Interactive Gambling Act (IGA) Review Final Report Final Report released by DBCDE on 12 March 2013 The IGA may in fact be exacerbating the risk of harm because of the high level of usage by Australians of prohibited services which may not have the same protections that Australian licensed online gambling providers could be required to have. IGA Review Final Report NaConal standard for harm minimisacon and consumer proteccon to be developed in consultacon with states and territories to cover all licensed online gambling accvices. ExaminaCon of recommendacons with respect to enforcement and deterrence, advercsing, educacon and awareness and social media, in consultacon with states and territories.

44 38. Advocating change Productivity Commission 2010 Inquiry into Gambling Recommendation 15.1: The Australian Government should amend the Interactive Gambling Act to permit the supply of online poker card games. Integrity of Sport When you talk about in-play betting, one of things that perhaps isn t so well understood is that people can bet in-play in Australia, but they do it offshore. So it follows that if it is something that people are able to do here in Australia, then we should create some sort of framework around it to make it protected. Cricket Australia CEO James Sutherland 44

45 39. Advocating change Responsible Gambling Advocacy Centre Joint Select Committee on Gambling Reform Inquiry Submission: In balancing the interests of the consumer with practicality, there needs to be a move to regulate online gambling. Independent Member for Denison, Mr Andrew Wilkie MP An Australian domestic industry should be developed carefully with effective harm minimisation measures for online play as well as robust consumer protection measures Mr Andrew Wilkie MP, Joint Select Committee on Gambling Reform Final Report (interactive and online gambling inquiry) 45

46 40. Advocating change Australia s leading academic (online gambling) Unregulated, illegal sites may also take players money, run games in a fraudulent manner and allow under 18-year-olds to play. The gambling industry is highly regulated in Australia and gambling operators follow strict protocols to provide a safe environment, but illegal internet sites do not have to abide by regulations or pay taxes. Dr Sally Gainsbury 46

47 41. Summary IGA is not working to protect Australians National and consistent harm minimisation measures required Protecting the integrity for sport is essential with zero tolerance of corruption. A more regulated online gambling market is needed in Australia 47