Commonwealth of Australia Explanatory Memoranda

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INTERACTIVE GAMBLING AMENDMENT BILL 2001

2001

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

SENATE

INTERACTIVE GAMBLING AMENDMENT BILL 2001

EXPLANATORY MEMORANDUM

(Circulated by authority of the Minister for
Communications, Information Technology and the Arts,
Senator the Honourable Richard Alston)

INTERACTIVE GAMBLING AMENDMENT BILL 2001

OUTLINE

The Interactive Gambling Act 2001 (the Act) provides for restrictions and complaints in relation to interactive gambling services. The framework in the Act has three main elements. Firstly it creates the offences of providing an interactive gambling service to customers in Australia and providing an Australian-based interactive gambling service to customers in designated countries (“designated countries” are declared by the Minister under section 9A of the Act). Secondly the Act establishes a complaints scheme which enables Australians to make complaints about interactive gambling services on the Internet which are available to Australians. Thirdly the Act prohibits the advertising of interactive gambling services in Australia. The advertising prohibition is set out in Part 7A of the Act.

The Bill amends the Act by inserting into Part 7A of the Act a regulation-making power relating to the prohibition on the advertising of interactive gambling services. The proposed regulation-making power provides that advertisements of a kind specified in the regulations are exempt from the definition of “interactive gambling service advertisement” in the Act.
The amendment is intended to allow regulations to be made to address unintentional effects of the advertising prohibition on licensed land-based casino operators. For example, an Australian-licensed land-based casino might develop and provide an interactive gambling service wholly to customers outside Australia who are not in designated countries. Such a service would not be in contravention of the main offence provisions of the Act. However, if the land-based casino gives a name to its online service that is similar to the name for its land-based licensed service, there is a risk that over time advertisements for the land-based service will be “closely associated”, for the purposes of paragraph 61BA(1)(e) of the Act, with the interactive gambling service that it provides legally outside Australia.

Paragraph 61BA(1)(e) of the Act provides that an “interactive gambling service advertisement” is any writing, sign, etc, that gives publicity to or otherwise promotes or is intended to promote any words that are closely associated with an interactive gambling service (whether also closely associated with other kinds of services or products). The advertising prohibition set out in Part 7A of the Act is not intended to prevent licensed land-based casinos in Australia from advertising their licensed gambling services in Australia if they choose to provide interactive gambling services under a similar or the same brand name to customers outside Australia. By inserting into the Act a regulation-making power that provides that advertisements of a kind specified in the regulations are exempt from the definition of “interactive gambling service advertisement”, regulations can be made to address this unintended consequence of the advertising prohibition.

FINANCIAL IMPACT STATEMENT

The Bill is not expected to have any financial impact on Commonwealth expenditure or revenue.

NOTES ON CLAUSES


Clause 1 – Short title

Clause 1 provides that the Bill, when enacted, may be cited as the Interactive Gambling Amendment Act 2001.

Clause 2 – Commencement

Clause 2 provides that the Bill, when enacted, will commence on Royal Assent.

Clause 3 – Schedule(s)

Clause 3 provides that each Act that is specified in the Schedule to this Bill is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Bill has effect according to its terms.


SCHEDULE 1
Amendment of the Interactive Gambling Act 2001


Item 1: Subsection 61BA(2)

Item 1 amends subsection 61BA(2) of the Interactive Gambling Act 2001 (the Act) by omitting “and 61BG” and substituting “, 61BG and 61BGA”. This ensures that section 61BA, which provides for the basic meaning of “interactive gambling service advertisement”, has effect subject to new section 61BGA.

Item 2: New section 61BGA

Item 2 inserts new section 61BGA after section 61BG. New section 61BGA provides that regulations may provide that an advertisement of a kind specified in the regulations is not an interactive gambling service advertisement for the purposes of Part 7A of the Act.

 


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