25/6/04
Racing and Gaming Minister Nick Griffiths has expressed his concerns today over the Norfolk Island Gaming Authority's decision to allow the AusTOTE internet wagering service to operate on the island.
"I have written to the Chief Minister, the Hon Geoffrey Gardener MLA, of my alarm that the authority has issued a licence to the betting exchange.
"It is apparent from its website that the AusTOTE wagering operations are based exclusively on Australian racing events and that it is openly targeting Australian punters," Mr Griffiths said.
"Australian States and Territories are currently focussing considerable attention on the threat posed to State-based racing industries from cross-border betting conducted by interstate and offshore wagering operators.
"These operators contribute very little, if anything, to the racing industries that provide the wagering product.
"As such, it is of great concern to me, to many of my fellow Australian Racing Ministers, and to our respective racing industries, that the Norfolk Island Gaming Authority has seen fit to license the AusTOTE operation.
"Indeed, I find the authority's actions surprising, given statements included in presentation material presented by the Authority's Director of Gaming at the 2000 Australasian Gaming and Casinos Gold Coast convention at Surfers Paradise that -
".being a Territory (Norfolk Island) under the authority of the Commonwealth, it is considered that it would not be acceptable to diminish in any way a revenue stream available to States and other Territories of Australia."
"In addition to the threat posed to the financial viability of the Australian racing industries, certain aspects of the AusTOTE operation give rise to serious integrity issues.
"In this regard, AusTOTE's promotion of a wagering product that enables punters to back a nominated runner to lose is of serious concern.
"You will be aware that this type of wagering, commonplace on internet-based betting exchange operations, is receiving significant attention by authorities at an international level.
"For these reasons I have been a strong critic of betting exchanges."
Mr Griffiths said that he had also written to the Prime Minister last week asking that the Federal Government outlaw betting exchanges by making amendments to its Interactive Gambling Act.
The Minister also plans to raise the issue next week at the Ministerial Council Meeting on Gambling in Melbourne.
Minister's Office - 9222 8950
