AU online casino threatens to leave over government review

Peter Bridge told Lasseters' annual general meeting today that "in light of the government interest across the world and particularly in Australia, your directors have considered it prudent to investigate alternative jurisdictions in which to base Lasseter's operations.

"We would prefer that we didn't need to consider this.

"But if necessary, we are prepared in order to ensure business continuity".

Bridge told ZDNet Australia this afternoon the company was assessing all jurisdictions, favouring those with a high level of government regulation and a "sensible" tax regime.

He cited as examples the Isle of Man or Vanuatu.

Bridge made his remarks as the federal Department of Communications, Information Technology and the Arts (DCITA) works on its review of the Interactive Gambling Act 2001 ahead of an expected completion date of Christmas this year.

The managing director said DCITA had not released any information on the recommendations of the review -- which assesses the growth of interactive gambling services, operation of the Act and technical developments since the Act was passed -- ahead of its delivery to the relevant Minister, Senator Richard Alston.

However, the online gambling industry is particularly nervous about the fact the review encompasses the restriction of financial transactions associated with online gambling, a measure which would reflect provisions in two Bills presently under consideration in the U.S.

Lasseters Corporation -- formed in April 2001 from the merger of listed company Gocorp, which was forced to close down an Internet casino operation after the Australian government imposed a moratorium on Internet gambing, and Lasseters Casino -- operates under license from the Northern Territory Racing and Gaming Authority.

Bridge said the company, which posted a maiden profit of AU$320,000 on revenues of AU$18.4 million in 200/03, had delivered a particularly heartening result "given that, in Australia, there is still some scepticism regarding the potential for businesses devoted to e-commerce".

Lasseters' today announced the launch of a new regulated online casino which would allow players to trial new, high-tech games. The move follows the signing of a new deal with software supplier Online Gaming Systems in July this year.

That move was clouded in controversy, with Lasseters' former software supplier, Access Gaming Systems, threatening legal action over licencing issues associated with Lasseters' use of its product.