Australian Prime Minister
John Howard announced last week that the federal government
will established a ministerial council to investigate "the feasibility
and consequences of banning internet gambling".
The announcement came as the result
of the release of a report from the Productivity Commission on
Australia’s gambling industries which recommended the establishment
of a ministerial council on gambling to address problem gambling
at a national level. The recommendation was based on concerns
that broadband cable and digital television would bring internet
gambling into homes 24 hours a day.
The announcement came as somewhat
of a surprise with some Australian states having already embraced
internet gambling by creating a regulatory structures for online
sports betting and casinos, most notably the Northern Territory
where online sportsbook Centrebet has been highly successful.
It is likely that any move to
ban internet gambling will be met with fierce resistance by
State governments who are currently responsible for gambling regulation
and reliant on it for up to 12% of their annual revenue.
Regardless of any policy conclusions
it makes, the council will find it difficult to come up with
practical ways to implement a ban on internet gambling, as internet
industry experts agree it is almost impossible to ban sites operating
from offshore. US regulators are facing a similar dilemma with
plans to legislate the banning of internet gambling, including
blocking of offshore gambling sites, currently being considered
by congress despite the protestations of the US gaming industry.