Racing Australia imposes new rules on illegal gambling

Any individual subject to Australian racing rules who is suspected of placing a bet with an illegal gambling operator can now have his or her phone and computer seized under draconian new regulations. The laws will come into effect on August 1.

The legislative body for the nation’s thoroughbred racing industry has rushed in laws to block what it alleges is the leak of hundreds of millions of Australian dollars via unauthorised gambling companies, predominantly in Asia.

Persons under the authority of the racing rules in Australia , for example owners and trainers, may be subjected to forensic inspections of their electronic communication devices if the racing authorities suspect they are involved in illegal activity, with tough penalties payable if wrongdoing is proved.

Racing Australia chief executive Barry O’Farrell said:

“This is simply about prohibiting participants betting with non-approved offshore wagering operators because it’s a significant risk for the industry. “The stewards have no visibility as to who is betting with them and therefore have no powers to acquire the production of a customer’s betting records. That obviously limits the ability of the racing integrity agencies to inquire and investigate relating to those matters.”

The offshore market has been estimated at around A$400 million, with potential to grow to A$900 million by 2020.

“The illegal offshore wagering market is a scourge on Australian racing,” said trade association Racing Wagering Australia’s executive director Stephen Conroy. “RWA’s members work hand-in-glove with racing bodies to protect the sport’s integrity but illegal offshore websites continue to actively target and undermine Australian racing every day.

“More than $1.3 billion of gambling activity is going offshore from Australia every year, denuding racing authorities of millions of dollars in product fees, hitting prize money, sponsorship and track and training facilities.

“Tough consequences like these for engaging with the illegal offshore industry are a positive development for the racing industry.”