Norfolk Islands stripped to grant gambling licenses to international operators

In an unprecedented and dramatic intervention by the federal government into thoroughbred administration, the Minister for Territories, Paul Fletcher, revoked the island’s gaming authority’s power to license betting operators in Australia.

The island gaming authority had previously licensed the reputable Ladbrokes to operate in Australia, but a decision in March last year to grant permission for betting exchange BetHQ, effectively opened Australia up to Citibet, the largest illegal bookmaker in the world.

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This decision prohibits the island authority from issuing and renewing gaming licenses, and requires the authority to seek approval from a delegate of the commonwealth minister before performing certain other functions such as varying a license or transferring a license

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The link was discovered only early last month and was most embarrassing for Australian racing after it had spoken out strongly at the Asian Racing Federation conference earlier this year against the dangers of illegal operators to the global sport’s health and integrity.

Racing Australia chief executive Peter McGauran told The Australian: “We welcome the quick intervention by the federal government for which we are most grateful. The minister has acted decisively to repair the reputational damage to Australian racing by the actions of Norfolk Island. Racing Australia will make a submission into the government inquiry into the future of the Norfolk Island authority, in which we will call for its permanent disbandment given its inability to properly assess applicants for wagering purposes."

The minister’s direction prohibits the island authority from issuing and renewing gaming licenses, and “requires the authority to seek approval from a delegate of the commonwealth minister before performing certain other functions such as varying a license or transferring a license”.

The direction effectively demands the authority stand down until a full audit of its procedures, previous decisions and protocols. The direction by the minister demands the authority co-operate with the audit which will start in July and is expected to take three months.

To that end the direction by the minister also ruled “the authority must not destroy or dispose of any item of correspondence or other document, electronic or otherwise, that is held by the authority …. at or after the commencement of this direction.” It is believed licenses granted before the minister’s direction will not be affected.

Chief executive of the Australian Wagering Council, Ian Fletcher, backed the government’s move yesterday.
He said the council, which represents heavyweight betting operators — bet365, Betfair, Sportsbet, Unibet and William Hill Australia — was right to prohibit the Norfolk Island Gaming Authority from issuing and renewing gaming licenses, without the prior approval of the commonwealth.

“Australian consumers, racing and sports bodies and the legitimate onshore wagering industry itself must have confidence in the licensing and regulation of wagering providers and the government’s proposed audit of the NIGA is welcomed. We are sure that important lessons will be learned,” Fletcher said.

“The complexities of the global wagering marketplace, coupled with increasing threats to sports integrity provide support for the longstanding view of the AWC that Australians need and deserve a rational, national regulatory framework for wagering.”