Casino News

Australia Prohibits Online Gambling Operators from Offering Cash Loans

A new package of legislation to prohibit online gambling operators from offering money credits to punters is heading steadily to the federal government, aiming to prevent local people from significant losses and solid debts.

The newly introduced restriction aims to ban online gaming operators in Australia to offer credit lines to players. In an interview with ABC radio, Human Services Minister Alan Tudge explained that this is an adequate measure to protect people from significant debts and losses. Mr. Tudge added that the legislation will most probably win the support of the lawmakers and soon it is to enter the legal framework of the country.

As a matter of fact, Mr. Tudge is a fervent proponent of the crackdown since 2011, when a jobless man entered his office, explaining that he ran into debts because of wagering, asking for help. The gambler told Mr. Tudge that the operator offered him a loan of $80,000 and he accepted it. But it took him only a week to spend all the money in credit by playing more games. That moment was the watershed in Tudgeโ€™s career, when he started to craft adequate and efficient measures for helping people with gambling problems.

This is not the first time in which legislators are trying to introduce severe restrictions on the gambling operators, aiming to prevent the Australian nation from social ills and financial troubles. Specialists also explained that the government cannot stop players from placing bets, but the most reasonable solution to the problem is to impose stricter measures.

Last year, Mr. Tudge also expressed his concerns regarding the offshore unscrupulous casino operators, who are benefiting from vulnerable players, well-disposed to gambling problems. He explained that different surveys on the matter show that gamblers are more likely to get into trouble online than in a brick-and-mortar casino.

Besides banning Australia-faced online gambling sites to offer loans to their users, the reform aims to โ€œcleanโ€ the gaming environment from the illegal offshore gaming operators. In that way, the players can enjoy one safe and protected gaming environment. Furthermore, the players will be able to control their bankrolls, without exhausting their savings on gambling activities.

In 2001, Australian government implemented the Interactive Gambling Amendment bill in order to cope with the boom of online gambling at that time. The experience shows that too harsh restrictions are not the right solution, as these cannot stop players to wager, but only can give a boost to the grey gambling area. Thus, Australian government now aims to adequately regulate the gambling industry, instead of restricting it.