The Northern Territory (NT) Government, which oversees Australia’s $50 billion online wagering industry, has been criticized for its consultation process in the drafting of the new Racing and Wagering Act 2024. The government sought feedback from all 28 online gambling companies licensed in the NT, including international giants Bet365 and Sportsbet, but only one harm reduction group was consulted.

Under the provisions of the Racing and Wagering Act 2024, Eva Lawler, the Chief Minister of the Northern Territory, (pictured above), would have the authority to guide the actions and responsibilities of the gambling regulator and its director.

The Alliance for Gambling Reform has expressed criticism over the closed consultation process for the draft bill that governs the $50bn industry, alleging that the territory lacks the necessary expertise to handle such a complex matter.

The proposed legislation, which could be voted on in the coming weeks, would allow the chief minister to direct the NT gambling regulator and its director in their duties. Initially, the government considered increasing maximum fines to 10,000 penalty units, approximately $1.75 million, but later reduced the cap by 75 percent to about $445,000 in the bill.

Other critics have accused the NT government of being “out of its depth” and undermining efforts to establish a national regulator, as recommended by a federal parliamentary inquiry. The government defended the legislation, stating it would align maximum fines with other jurisdictions. Critics have long argued that the fines were so low as to have little regulatory impact.

Limited consultation and unanswered questions

The NT government sought feedback on the bill from all licensed gambling companies, the racing commission, the racing appeals tribunal, the NT civil and administrative tribunal, government agencies, lawyers for the gambling industry, and one gambling support group – Amity Services. However, it did not approach anyone based outside the NT, including regulators, gambling researchers, academics, treatment centres or financial counsellors.

The government declined to answer questions about why it did not hold an open consultation process and why it only consulted one local counselling service, given the national inquiry documented “powerful evidence” of harm caused by the online gambling industry.

Carol Bennett, the chief executive of the Alliance for Gambling Reform, noted the timing of the bill was “interesting”, given the Albanese government was expected to respond to the federal inquiry’s recommendations within weeks. The inquiry, led by the former Labour MP Peta Murphy, called for a new national regulator to take responsibility away from the Northern Territory and be “responsible for all licensing and regulation”.

———-Stop Press: The next SiGMA Africa Summit takes place in Cape Town between 11-13 March !  SiGMA Africa event kicks off in Cape Town, South Africa on the 11 March. Building on the success of its inaugural edition in Nairobi, Kenya, in January 2023, SiGMA Group recognizes the need to foster collaboration and innovation within the industry.