ONLINE WAGERING IN AUSTRALIA NAGS CONFERENCE GOLD COAST NOVEMBER 2014

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1 ONLINE WAGERING IN AUSTRALIA NAGS CONFERENCE GOLD COAST NOVEMBER 2014

2

3 AWC members are Australian licensed & operated wagering service providers who offer online wagering

4 Products offered by AWC members Online wagering Thoroughbreds Harness Greyhounds Sports Online gaming Poker Casino table games Lotto 14% Bingo Keno Games of skill Gaming machines slots 86%

5 Australia s Official $20 Billion Total Annual Gambling Spend in 2011/12 Sector breakdown Pokies in clubs & hotels 53.2% Casino gaming 19.9% Lotteries, Keno & Pools 11.2% Racing 13.7% Sports betting 1.9%

6 Australia s Official $20.7 Billion Total Annual Gambling Spend in 2012/13 Sector breakdown Pokies in clubs & hotels 52.4% Casino gaming 19.9% Lotteries, Keno & Pools 12.1% Racing 13.3% Sports betting 2.3%

7 The regulation of Australian licensed and operated online wagering operators AWC members operate in accordance with an extensive regulatory framework: federal and state legislation and regulations broadcast and advertising codes self regulatory industry codes

8 : Measuring its reach Difficult to measure exactly how many Australians and how much money is being wagering offshore The 2010 Productivity Commission Report estimated $1 Billion was lost annually to black-market offshore operators H2 Gambling Capital estimated in 2011 that 14% of Australian expenditure on interactive wagering goes to offshore providers Joint Select Committee on Gambling Reform suggested in 2011 more than 2400 gambling websites were available to Australians in New studies on the size & scope of the offshore market have been commissioned

9 : Measuring its reach Indicators of an increase in offshore wagering April 2014: Report on Interactive Gambling (funded by Gambling Research Australia) found that at least one-third of Australian interactive gamblers were not concerned about gambling with offshore operators. May 2014: the Victorian Police Sports Integrity Symposium was addressed by international experts in sports corruption and match-fixing. Mr Patrick Jay of the Hong Kong Jockey Club estimated more than 2500 black-market operators in Asia were offering online in-play to Australians

10 Measuring its reach May 2014 The International Centre for Sports Security released the results of a two year study into sports corruption and match-fixing, which revealed: 80% of global sports betting is transacted illegally (making it invisible to regulators and investigators) $US140 Billion is laundered annually through sports betting

11 Accessibility Here at the Australian Bookmakers review site we showcase the leading online Australian bookies, telling you what they have to offer the Australian punter. We also review the best of offshore bookies who accept Australian punters and support accounts in Australian Dollars.

12 Accessibility AFL and/or NRL Grand Finals 10bet.com bookmaker.eu Redkings.com 5dimes.eu comeon.com sportbet.co.za Bestbet.com expekt.com spreadex.com bet-at-home.com global.138.com sunbet.co.za betvictor.com gwbet.com tempobet90.com Bet-x-1.com interwetton.com Titanbet.com. betclic.com Jetbull.com Totesport - totesport.com betcris.com matchbook.com Vernons - vernons.com betdaq.com Marathonbet.com Winner - winner.co.uk betdsi.eu Netbet.com Youwin.com betrally.com Noxwin1.com betsson.com pinnaclesports.com

13 : Accessibility Online In-play To place live sports bets online on sporting events you need to look to an overseas bookmaker. Whilst the Australian legislation here does not allow Australian bookmakers to offer live betting online, you can bet LIVE online with overseas based bookmakers. Suggested offshore bookmakers for Australians for LIVE Sports betting are BetVictor, Intertops, Pinnacle Sportsbook and GUTS.com

14 Accessibility Online In-play

15 Identifying the threats The threats posed by illegal offshore wagering are many and varied: Consumers Integrity of racing and sport Funding of racing and sport Returns to government and community

16 Threat to consumers Harm minimisation Responsible Gambling Security of personal and financial information Consumer protection measures

17 Threat to consumers Extract from online betting forum Just wondering if anyone has an opinion of bookie called Betjack. They are recruiting punters at the moment. I've won on my account with Betjack up to $6k & tried to withdraw $1k which came out of my account as paid & never was paid to me. I asked & they said sorry human error & are still yet to pay it 3 weeks later or put it back in my account, I won a bet on the weekend that they put down as lost with the wrong information & are yet to reply or fund me it & I've tried to withdraw the other $5k a few times which has been declined & was first told it was with Austrac for money laundering but after speaking to Austrac they said actually no it's management holding my money & I'd have to wait for their outcome

18 Threat to consumers The value of your betting account with Betjack is actually ZERO in any currency. That is they do not intend to pay you any amount in the dollar!! They have a simple business model, if you lose they expect you to pay, if you win they do not pay. Social Media warning

19 Threat to consumers 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 Leading gambling academic & researcher

20 Threat to funding and integrity of racing No product fees payments No information sharing agreements "They are parasites who have been paying no returns to the Victorian racing industry for the use of our product, nor are they complying with our integrity requirements as approved wagering operators are obligated to do through information sharing and compliance. Bernard Saundry CEO Racing Victoria

21 Threat to funding and integrity of racing If placed offshore, betting offences go undetected

22 Threat to funding and integrity of sport No product fee payments No integrity agreements No right of veto on bet types by sports controlling bodies Anyone who breaches the betting rules can expect to spend a long stint on the sideline or lose their job. We are going to step up our education of the rules and every player, official and employee is on notice that there will be no excuses for betting on games in future. The NRL will continue to work with the betting agencies to ensure there is no threat to the integrity of our game. Jim Doyle NRL Integrity Unit

23 Threat to funding and integrity of sport Prohibited participants placing bets offshore, go undetected

24 Threat to government revenue & wider community No wagering taxes No general taxes payroll, FBT, company No contribution to employment and innovation

25 Fighting the threat

26 Fighting the threat May 2014 The International Centre for Sports Security released the results of a two year study into sports corruption and matchfixing, concluding: The clear responsibility is with countries and governments to disrupt and correct the vulnerability of sport betting to transnational organised crime.

27 Fighting the threat 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 James Sutherland CEO Cricket Australia

28 Fighting the threat October 2014 Illegal Offshore Wagering Working Group established under the Australian Government s Gambling Industry Advisory Council Representatives from the racing industry, professional sports and wagering organisations.

29 Fighting the threat There are significant numbers of illegitimate offshore operators already targeting Australian racing and sport and it is vital that an effective regulatory regime be introduced to address the serious integrity and revenue risks that they pose There are already Australian headquartered organisations that are operating in this way by basing their betting operations in unregulated international jurisdictions including in the Pacific and Asia regions It is understood the annual turnover by Australians punters with these organisations is in the hundreds of millions of dollars.. The Hon Kevin Andrews MP, Minister for Social Services

30 Fighting the threat It is unfair that legitimate Australian-based and registered bookmakers pay the product fee required of them by racing and sports bodies while offshore bookmakers effectively pirate Australian product. Offshore bookmakers also refuse to adhere to integrity measures that are fundamental to the honest operation of the racing and sporting events. These important integrity measures include requirements for operators to disclose betting records and not to offer inappropriate bet types that unnecessarily expose racing and sport to corruption. Dr Denis Napthine, Premier of Victoria & Minister for Racing

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