Australia is intensifying its crackdown on illegal gambling operations as authorities report a surge in underground casinos and private poker games in Sydney. This increase comes amid heightened scrutiny of licensed operators like Crown Resorts and Star Entertainment Group, which have faced regulatory challenges and compliance failures.
Key Takeaways
- Authorities have conducted five raids on illegal casinos in Sydney over the past year.
- The rise in illegal gambling is linked to stricter regulations on licensed casinos.
- The Australian Communications and Media Authority (ACMA) is actively blocking illegal gambling websites.
Rising Illegal Gambling Activities
In the past year, Sydney has seen a notable increase in illegal gambling activities, with five underground casinos raided by law enforcement. This trend is attributed to the regulatory pressures faced by licensed operators, which have made it difficult for them to operate freely. As a result, players are seeking alternative venues for gambling, leading to a boom in illegal operations.
Mark Morri, a Crime Editor for The Daily Telegraph, highlighted that organized crime is capitalizing on the situation. He compared the current gambling landscape to Australia’s historical tobacco wars, where high taxes on legal tobacco products led to a surge in illegal sales. Morri stated, "There’s a lot of money out there, and if people can’t spend it legally, organized crime will find a way to exploit it."
Regulatory Challenges for Licensed Casinos
Licensed casinos in Australia, particularly Crown Resorts and Star Entertainment Group, are grappling with significant regulatory challenges. These challenges include:
- Compliance Failures: Both companies have faced scrutiny for their dealings with international junkets and other compliance issues.
- Increased Regulations: New measures such as mandatory carded play and cashless gaming are being implemented, which do not apply to the broader pubs and clubs industry.
- Financial Struggles: Crown Resorts has been divesting non-core assets to manage financial pressures, while Star Entertainment Group is on the brink of bankruptcy, considering offers from potential buyers.
ACMA’s Efforts Against Illegal Online Gambling
The Australian Communications and Media Authority (ACMA) is also taking steps to combat illegal online gambling. Recently, the ACMA requested internet service providers to block two additional websites offering illegal gambling services. Since 2019, the ACMA has blocked over 1,178 illegal gambling and affiliate websites, with around 220 illegal services exiting the Australian market since 2017.
Conclusion
The crackdown on illegal gambling in Australia reflects a broader concern about the impact of excessive regulation and taxation on the gambling industry. As authorities continue to enforce stricter measures, the challenge remains to balance regulation with the need to keep players engaged in legal gambling environments. The rise of illegal casinos poses significant risks not only to the integrity of the gambling industry but also to public safety and law enforcement efforts.
Sources
- Australia’s casino crackdown in the spotlight as authorities reveal rising illegal casino raids in Sydney – IAG, Inside Asian Gaming.
- ACMA targets more illegal Australian gaming operators, InterGame.