Chief Minister Eva Lawler tables overhaul of gambling, racing rules, but advocates condemn response

Six Territorians are the de facto regulators for most of Australia’s $50bn a year gambling industry. See why experts have slammed sweeping reforms to the Territory’s betting industry.

Chief Minister Eva Lawler tabled the Racing and Wagering Act 2024 to parliament on Thursday, which would completely overhaul existing gambling laws to give greater focus on online gambling. Picture: Pema Tamang Pakhrin

The NT has been accused of “holding the country to ransom” through weak gambling regulations and a “loophole” in which six Territorians are responsible for monitoring a $50bn national betting industry.

Chief Minister Eva Lawler tabled the Racing and Wagering Act 2024 to parliament on Thursday, which would completely overhaul existing gambling laws to give greater focus on online gambling.

Ms Lawler said the bill increased penalties, established a new Racing and Wagering Commission and a Director of Racing and Wagering, and set a levy on racing operators — taking an undisclosed percentage of sports bookmaker or betting exchange licence holders’ gross monthly profits.

The bill has been backed by both Thoroughbred Racing NT (TRNT), the Darwin Greyhound Association and Sportsbet.

A Sportsbet spokesman said it was “strongly supportive of modernising the Act”, saying the increased penalties brought the NT in line with other jurisdictions.

“This is an appropriate penalty framework to ensure compliance and we recognise that these increases are in line with community expectation,” he said.

TRNT chief executive Andrew O’Toole said the changes were “a long time coming” while DGA manager Greg De Lanty said all its trainers, members and supporters were expected to comply with the new rules.

However, anti-gambling advocates have accused the NT Government of rushing through weak, “watered down” regulations to sidestep the Federal Government’s expected response to a scathing report into online gambling.

Ms Lawler said the bill increased penalties, established a new Racing and Wagering Commission and a Director of Racing and Wagering, and set a levy on racing operators.

Eight months ago the ‘You win some, you lose more’ Senate Inquiry report raised serious concerns about regulatory and taxation loopholes which meant the “Northern Territory Racing Commission is Australia’s de facto online gambling regulator”.

The Inquiry found the six members of the NTRC oversaw 32 sports bookmakers and two betting exchanges with a total combined annual turnover of about $50 billion.

“This is because the Northern Territory charges the lowest taxes and fees and has been described as a light touch regulatory regime,” the Inquiry found.

Alliance for Gambling Reform chief executive Carol Bennett said the, “shameful” scheme meant the small jurisdiction was “holding the country to ransom”.

Ms Bennett accused the Territory Government of being “drunk on gambling revenue”, with the new bill failing to address major flaws in online gambling regulations.

“(They’re) trying to look like it’s doing a half decent job of regulating these massive multi-billion dollar industry despite ongoing regular failures to rein it in,” she said.

“I’m cynical about not only the lack of transparency but also the rigour in this legislation.”

Ms Lawler conceded before parliament the existing gambling penalties were seen as “minor inconvenience and not the deterrent it should be”.

She said it was initially suggested the new maximum monetary penalty would be 10,000 penalty units — around $1.76m — however this was slashed by 75 per cent to a maximum penalty of $440,000.

While Ms Lawler argued this was still five times the current maximum, Ms Bennet said it was “watering down” fines.

The 2023 Senate Inquiry found NT penalties were so “inadequate”, online gambling companies could still record a profit after fines.

In a case study a Sydney father-of-two with a diagnosed gambling disorder received unsolicited bets from two betting companies, and within two years he had amounted $758,510 in debts to one gambling agency.

NTRC fined that agency $78,540 — a tenth of their profits from the high-risk gambler they had wronged.

The Inquiry also raised concerns about the perceived “regulatory capture” by online wagering providers in the Northern Territory, with Ms Bennett saying she saw no evidence the new Racing Director or Gaming Commission would be independent or free from conflicts of interest. 

A government spokeswoman said the new roles would be similar to the Liquor Commission and Director — however the proposed bill gives the Minister sweeping powers not offered for the regulation of alcohol. 

The Racing Bill includes a clause where the Minister “may direct the Director and the Commission in the exercise of their powers and the performance of their functions” and they “must comply” with the directions.

Ms Bennett called for the Federal Government to step in and regulate online gambling.

“You need a regulator that has teeth and has the capacity to do the job properly — and that isn’t the Northern Territory.”