Online gambling operators providing their services in South Australia may be banned from granting unsolicited credits to their gambling customers under new regulatory changes proposed by the state’s Independent Gambling Authority (IGA).
If the said reforms to South Australia’s Gambling Code of Practice come into effect, operators will be required to complete comprehensive checks before offering credits to any of their gambling customers. In addition, gaming companies will also have to immediately process withdrawals from gaming accounts. Last but not least, they will have to disclose the so-called spotter’s fees.
If the operators violate the code in any manner, they will have to pay fees of up to A$100,000. According to local media, there are a total of 19 licensed online gambling companies offering their services within South Australia’s borders and 74,000 registered betting accounts.
Gail Gago, Minister for Business Services and Consumers, said that the proposed changes were prompted by a report published by Financial Counselling Australia in August. According to it, online betting agencies engaged in somewhat questionable practices concerning the offering of credits to customers.
Ms. Gago explained that in some cases, gambling customers have been offered credits of tens of thousands of Australian dollars without being asked about their circumstances or whether they have the capacity to repay their debts. Other examples show that specially appointed customer service agents contacted account holders, encouraging them to opt for various products offered by a given operator, unsolicited credits included.
Ms. Gago expressed hopes that the proposed reforms would come into effect and would stop those “unscrupulous practices.” The IGA gave gambling operators 28 days to comment on the changes. If they get approved by lawmakers, they may become effective at the beginning of 2016.
Commenting on the changes, Robert Chappell, Director of the IGA, said that they are a balanced response to the findings outlined in the above-mentioned report. The official further noted that the online gambling operators’ practices were “very seductive” and some of the products and services offered are in fact “quite pernicious.” He also noted that this has long been a hidden problem as people tend to avoid talking about it.
Yet, according to Mr. Chappell the proposed changes are likely to come into effect as they are “really hard to disagree with.” The official also said that he hopes operators would engage properly once and if the reforms become effective.
