The federal government will allow online sports betting and lotteries to continue, but says it will extend an Internet gambling ban to offshore operators.
The compromise won mixed reviews from ban opponents, including gaming companies, the racing industry and opposition politicians who had threatened to block the legislation in the Senate.
The legislation is set for debate before the upper house this week, where it is expected to squeak through into law with the support of some members of the minor party Democrats.
Communications Minister Richard Alston said the fledgling online industry needed to be brought under control before it became a major social problem in Australia -- already one of the world's leading problem gambling nations -- but acknowledged the powerful Australian racing industry had raised valid concerns.
"In the case of the racing industry, the government remains concerned about the impact of Internet wagering, but recognises that this concern needs to be balanced against the impact of a ban on a bona fide and long established industry," he said.
Official reports show 80 percent of Australians already gamble at least once a year, 40 percent regularly. The nation of 19 million people is home to one in five of the world's poker machines with 290,000 Australians classified as problem gamblers.
Offshore services banned
A government spokesman said the conservative coalition agreed in a party room meeting yesterday to include four amendments to the proposed legislation, to exclude wagering on horse and greyhound racing, sports betting and lotteries from the ban.
The changes would, however, ban advertising of gaming services in order to limit access of both Australian and offshore gaming operators to the Australian market, and extend the offence of providing interactive gaming services to offshore operators.
Australian gaming companies, including media mogul Kerry Packer's Publishing & Broadcasting, which has an online gambling operation, have threatened to move their gaming operations offshore if the legislation is passed. A PBL spokesman declined to say whether the company remained opposed to the ban.
It is unclear how the ban would be enforced on overseas operators, but Alston said Australia would cooperate with any foreign government which was also looking at such a ban.
"Insofar as people operating services to Australians from offshore, then we'll have a ban on advertising and we'll also make it an offence, so that if you set foot in Australia you will be liable to prosecution," Alston said.
The Australian Casino Association attacked the changes as unfair, saying online casino games were being discriminated against while lottos and sports wagering went on unchecked.
"Online gaming regulation, whether for wagering or casino style games, must be consistent," ACA Executive Director Chris Downy said in a statement.
But a spokeswoman for gaming, wagering and casino group Tabcorp Holdings, welcomed the compromise.
"Tabcorp is certainly very pleased that the government has recognised that Internet wagering is really just an extension of an existing product that has been in place for nearly 40 years and that is telephone betting," she said.
