Federal Independent MP Andrew Wilkie has accused the Tasmanian government of rolling out the “red carpet to a predatory industry”, by approving a new gambling licence to online bookmaker Betr.
Betr announced in a statement to the ASX on Monday it would shift its operations from the Northern Territory to Tasmania, after securing a five-year licence from the Tasmanian Liquor and Gaming Commission, effective immediately.
The company plans to shift its headquarters to Tasmania by the end of the year.
Chief executive Andrew Menz said it followed a “multi-year evaluation of Australian regulatory frameworks”.
“We look forward to establishing our long-term presence in Tasmania, contributing to local employment and investment and working closely with all stakeholders to deliver a safe, responsible and sustainable wagering environment for our customers,” Mr Menz said.
Confirming the move, Tasmanian Treasurer Eric Abetz admitted the state’s legislation would need updating to provide “appropriate guardrails and modern systems”.
“A number of existing Tasmanian regulatory requirements do not appropriately reflect the technology, operating models and governance arrangements of modern online wagering businesses,” Mr Abetz said.
Eric Abetz said current laws were outdated. (ABC News: Ebony ten Broeke)
Mr Wilkie said it was a remarkable admission from the government, in a press release titled “Jackals converge on Tasmania”.
“Sure, the Tasmanian government says they’ll update the regulations, but I’ll believe that when I see it,” Mr Wilkie said.
“And call me pedantic, but isn’t the right time to do that before you roll out the red carpet to a predatory industry?“
Independent MLC Meg Webb also called the move “reckless and irresponsible”.
She said the online gambling industry “clearly saw an opportunity to exploit the state’s weaker regulatory and taxation systems”.
“Clearly, Betr has identified Tasmania as a soft touch,” Ms Webb said.
Tasmania now in charge of regulation
Many of Australia’s major betting agencies, including Sportsbet, Bet365 and Ladbrokes, have been licensed in the Northern Territory.
Reporting by Four Corners last year alleged conflicts of interest within that jurisdiction’s regulator, the NT Racing and Wagering Commission, which is responsible for overseeing its national activities.
Earlier this year, the NT government released legislation intended to reform the industry and address those concerns, which also increases the annual tax cap for bookmakers.
There have been calls for a national regulator, however the Albanese government has not included that in its proposed reforms.
Reformed gambler Mark Kempster is an advocate for greater regulation of the industry. (ABC News: Maren Preuss)
Mark Kempster of the Alliance for Gambling Reform said this was a “perfect example” of why a national regulator was needed, expressing concern about Tasmania’s ability to regulate the industry’s big players.
“This is a really big industry and knowing the amount of people who do complain about this industry, they’re going to have a lot of issues to deal with with these types of companies,”
Mr Kempster said.
He also accused the state government of previously having “cowered down” to the gambling industry by giving up on plans for a mandatory cashless card.
“A lot of questions have to be asked about this deal, because it’s very light on detail at the moment in terms of how they’re actually going to be able to properly regulate this company in the industry,” he said.
A spokesperson for Tasmania’s Treasury department said “details of individual licence conditions are not routinely published, and the Commission does not comment on specific regulatory arrangements relating to individual licencees”.
It’s not clear exactly which regulatory requirements the treasurer is eyeing for change.
Asked by the ABC, the treasurer said “engagement with Betr by the government has demonstrated that aspects of Tasmania’s current legislation have not kept up with changes in technology, operating models and governance arrangements of modern online wagering businesses”.
Betr has been contacted for comment.
The gambling industry’s peak body, Responsible Wagering Australia, welcomed Tasmania’s “first online wagering licence holder”.
“Jurisdictions that combine strong consumer protections with competitive tax and regulatory settings will be best placed to attract investment, create jobs and deliver the best outcomes for punters,” chief executive Kai Cantwell said.
“As tax and regulatory costs continue to evolve across jurisdictions, it’s reasonable to expect operators will periodically review where they hold their licences,”
he said.
Move to result in eight jobs
Mr Abetz also said Betr’s move to Tasmania was “made possible because Tasmania is open for business”.
He said the state would now “reap the rewards of having local jobs”.
The move is expected to create eight jobs.
Premier Jeremy Rockliff said at a press conference on Tuesday morning Betr’s relocation would result in revenue of “around $1 million initially, and possibly more as the business grows”.
Betr is an online betting platform for horse racing, greyhounds, and sports betting. (Supplied)
Mr Rockliff did not explain whether the money was from licence fees, payroll tax or other measures.
He rejected a question about whether the announcement sent the wrong signal about the government’s commitment to reducing harm after plans for a pokies pre-commitment card.
“We’re a state that embraces opportunity, we’re a state that values jobs and employment, and we’re a state that values an additional revenue source as well,”
Mr Rockliff said.
EMRS, the polling firm of former Liberal strategist and nominee for the party’s upcoming senate seat, Brad Stansfield, is also the registered lobbyist for Betr in Tasmania.
Betr is the second licence holder in Tasmania, following UBET (or TAB), which holds licences in all Australian jurisdictions except Western Australia.
Tasmania previously licensed Betfair’s Australian operations, signing an agreement in 2005.
The British gambling giant departed for the Northern Territory in 2016.
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