| They blazed a legislative trail shortly after the turn of | | | | Another key difficulty was the fact that the law would |
| the millennium and now find themselves wondering | | | | have no real impact on either Australian's propensity to |
| whether they took right path. Governments that | | | | gamble, or their ability to access the sites which the |
| thought they could control how, where and with whom | | | | legislation was supposed to prohibit. |
| their residents chose to gamble with on the internet | | | | Nevertheless, lawmakers thought the Act would make |
| are now having to rethink their online gambling strategy. | | | | a difference and curb 'illegal' online gambling. But the |
| One of the best case studies in this regard is the | | | | reality 8 years down the track is that the number of |
| Australian experience. | | | | Australians gambling online at websites prohibited by |
| In 2001 the Australian Government surprised many | | | | the Act can be counted in the hundreds of thousands. |
| industry observers when they passed the Interactive | | | | Locally licensed operators are now complaining that |
| Gambling Act 2001 ("the Act"). The Act took a | | | | they can't compete with their offshore counterparts |
| prohibitive approach to online gambling, rendering it | | | | and the government is seeing millions of dollars in |
| illegal for offshore operators to offer their product to | | | | potential tax revenue flowing out of the country. |
| Australian residents, as well as limiting the nature of | | | | As a result, the Australian Government is now |
| bets that locally licensed operators could offer. 'In-play' | | | | undertaking a consultation process to study gambling |
| sports bets were a notable bet type that Australian | | | | reform. This is government speak for 'we got it wrong |
| licensed sports books could not offer. | | | | the first time round and are now going to have to do |
| It was a bold law with clear intent; to limit Australian | | | | an about face. |
| resident access to gambling sites that were not | | | | And the Australians are not alone. France is another |
| licensed in Australia. But from its release many | | | | country that went down the online gambling ban path, |
| believed that the government was being overly | | | | only to do an about face years later and announce |
| optimistic regarding their ability to effectively police the | | | | their intentions to enact new laws opening up their |
| provisions of the Act. One blaringly obvious issue was | | | | online gambling market and licensing processes. Of |
| that those who the legislation was primarily aimed at - | | | | course France has the added incentive of having to |
| offshore online gambling sites, were beyond the | | | | please the European Commission and not breach |
| jurisdiction of the Australian judiciary and therefore | | | | freedom of provision of services laws. But that's |
| unlikely to change their operating practices because of | | | | another story altogether. |
| the law. | | | | |