Australia considers legalizing online sports betting

Documents obtained by the Daily Telegraph reveal the Gillard government informed gaming operators that they could offer online "in-play" betting in the next six to 12 months.

In response to the news report, Independent senator Nick Xenophon has announced he will make freedom of information (FOI) requests for any dealings between the online gambling industry and the Federal Government.

"It seems after its betrayal of its deal with (independent MP) Andrew Wilkie for real poker machine reform, the government is on a roll," the founder of the No Pokies party said in a statement. "We now know the government has been engaged in secret talks with the online gambling industry to enable them to diversify their addictive product to suck in more Australians."

Current legislation allows "in-play" betting over the phone or in person but the government believes many Australians are already making online bets during matches through overseas-operated websites.

The changes could create a new us$ 300 million segment of the gambling industry but critics have warned that "in-play" wagering is more prone to corruption due to fluctuating odds before a final result.

News Ltd. reports the government also plans to allow Australian gambling firms to offer online games such as poker and roulette. Many Australians already play poker online but do so through sites based abroad.

The moves appears to be at odds with government pledges to eliminate a number of "exotic" betting options and reduce the amount of gaming advertising during sports broadcasts on TV. Exotic betting options include wagers that are made on things other than the outcome of the match, such as which team wins the first penalty.

Merrill Lynch gaming analyst Mark Bryan told his clients of the government proposal after attending an online gaming forum.

"In-play live online betting: Many in the industry indicated that they expect this to be legalised alongside poker in the next six-12 months following overseas precedents," Mr Bryan wrote in an email on May 9.

The Department of Broadband, Communications and the Digital Economy has refused to comment until it completes its review of the Interactive Gambling Act (2001).