The Australian Communications and Media Authority has identified a number of problems with the enforcement of a ban on the provision of credit by online and telephone betting operators.
These include establishing that a credit contract has been set up, monitoring the flow of funds between operators and their customers, and the appropriateness of a number of exemptions.
ACMA administers and enforces the Interactive Gambling Act, which was amended in 2017 to ban online wagering and telephone betting operators from providing credit to Australian customers or facilitating the provision of credit via third parties.
It is reviewing the credit betting ban to assess its effectiveness and has issued a consultation paper.
ACMA chief concern is that it can be difficult to establish that a wagering operator and customer have an agreement, arrangement or understanding for credit to be provided.
Difficulties arise where a wagering operator advances funds to a customer’s account on the understanding that the customer has arranged for a payment to the operator.
In some cases that payment does not go through and the customer is able to continue betting for an extended period on funds advanced by the operator.
ACMA said: “In such situations, it is not possible to establish a mutual intention to provide credit. In the absence of documented exchanges between the parties or admission by the parties, it is necessary to look for patterns of behaviour or other indicators sufficient to support an inference of the probable existence of such an agreement.”
It has proposed a stricter definition of credit, which prohibits a wagering operator from allocating funds to a customer’s account until a payment has actually been received into the operator’s account.
Another concern is with a practice where operators allow customers to reverse a transaction, effectively going into debit.
It has asked for feedback on a proposal that wagering operators be prevented from allowing a customer to reverse a transaction after it has been accepted by the operator.
Finally, ACMA has issues with the exemptions in the Act. The prohibition does not apply where the service provider has a wagering turnover of less than A$30 million and provides services as a racecourse. The exemption is designed to allow on-course bookmakers to provide credit.
ACMA has asked for comment on whether the $30 million turnover threshold is still appropriate.
And the prohibition does not apply where the customer is a gambling service provider – that is, in a business-to-business transaction such as a “bet back” to offset liability. ACMA has asked for feedback on whether this exemption remains appropriate.