Regulatory body targeting five additional unauthorized gambling websites
In a bid to maintain consumer protection and combat the rise of unregulated online gambling, various strategies are being considered and implemented around the world. Let's explore the effectiveness and challenges of these strategies, focusing on Australia's domain blocking, international cooperation, and payment blocking.
Domain Blocking in Australia
The Australian Communications and Media Authority (ACMA) has been actively enforcing domain blocking measures to prevent access to unregulated online gambling sites. However, the evolving nature of online technologies and the use of VPNs or mirror sites have limited the strategy's effectiveness in completely preventing access.
Since November 2019, ACMA has added 1,279 operator and affiliate websites to its blocking list for breaching the Interactive Gambling Act 2001. Despite these efforts, thousands of other gambling websites are suspected of targeting the Australian market.
International Cooperation
International cooperation among regulatory bodies can significantly enhance the effectiveness of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Aligning laws and enforcement across countries can help in identifying and penalizing unlicensed operators more effectively than domain blocking alone.
However, differences in legal frameworks and enforcement capabilities across countries can limit the effectiveness of international cooperation.
Payment Blocking
Payment blocking, which involves preventing transactions to unlicensed operators, can be highly effective in reducing their ability to operate, as it cuts off their revenue streams. Implementing payment blocking requires cooperation from financial institutions and payment processors, which can be challenging but effective when enforced consistently.
Cryptocurrencies, however, can bypass traditional payment blocking measures, creating new challenges in enforcement.
Comparison Summary
| Strategy | Effectiveness | Challenges | |--------------|-------------------|---------------| | Domain Blocking | Limited due to circumvention methods (VPNs) | Technological evasion | | International Cooperation | Higher due to regulatory alignment and enforcement | Differences in legal frameworks | | Payment Blocking | Highly effective in reducing revenue streams | Cryptocurrencies and enforcement consistency |
In conclusion, while domain blocking in Australia has some limitations due to technological evasion, international cooperation and payment blocking can be more effective strategies when consistently enforced. However, the rise of cryptocurrencies complicates enforcement efforts across all strategies.
Meanwhile, some regional neighbours have decided to legalize online casinos, unlike Australia's firm opposition to expanding its gambling landscape in this way. Jarrod True, a legal expert on gambling law in New Zealand, believes that the measures being implemented will significantly reduce the influence of the offshore gambling market in the country.
Recently, the ACMA issued a new ISP blocking order against five unlicensed gambling websites, reinforcing its belief that website blocking is its most reliable tool against the offshore gambling market. Mirror domains can easily be set up by casinos, allowing them to shift their offers in a matter of days, or even sooner.
Our website's Head of Casino Research, Matej Novota, has commented on the latest blocking action, emphasizing the importance of ongoing efforts to combat unregulated online gambling and protect consumers.
Despite the limitations in the effectiveness of domain blocking due to technological evasion and the creation of mirror sites, it remains a reliable tool in Australia's fight against the offshore gambling market.
International cooperative efforts among regulatory bodies, such as aligning laws and enforcement, can augment the effectiveness of Anti-Money Laundering and Know Your Customer regulations in combating unlicensed operators more effectively.
Implementing payment blocking by preventing transactions to unlicensed operators can significantly reduce their operational capabilities, but the emergence of cryptocurrencies poses new challenges in enforcement.
