Tweet
By KATRINA NICHOLAS
Australia could miss out on millions in investment dollars because of the proposed Federal Government online gambling ban, with two UK Internet casino operators yesterday indicating that they were reconsidering plans to set up here.
Sportingbet.com and Flutter.com, both based in Britain, were seeking licences from the Tasmanian Government to operate in Australia.
Flutter.com, established in February last year, offers betting on a range of topical issues, such as "where will Prince William go to university?", while Sportingbet.com offers betting on sports.
Flutter.com director Mr George Monical, in Sydney to meet industry players and State and Federal Government officials, said the company had planned to invest in coming to Australia a "sizable chunk" of $70 million it recently raised.
Mr Monical said Flutter.com, whose backers include Europ@web, Chase Episode 1, UBS Capital, Index Ventures and fellow eBay investor Benchmark Capital, wanted an Australian online gaming licence because "no other reputable country" offered licences of the same calibre.
"We want to be regulated, because it makes investors and our clients feel better about dealing with us and it allows us to build a trusted brand," Mr Monical said.
"Australia's moratorium is stifling investment."
Flutter.com now operates under a regular UK bookmaker's licence, given Britain has not moved to legislate for online gaming.
Mr Monical said other countries, including South Africa and Canada, were rushing to introduce legislation regulating online gaming.
Australian wagering consulting firm Bellamy, Miller & Monypenny is understood to have recently aligned itself with the South African Government, aiming to help it introduce legislation sooner than planned.
But Mr Monical said for many online casino operators, Australia was the country of choice because of its proximity to the lucrative Asian market.
"Flutter.com predicts that within a few years Asia will account for 80 per cent of revenue," he said.
"South Africa doesn't put us in the same time zone [as Asia] and it's not as nice a place to live."
The Federal Government last week confirmed it would introduce legislation for a moratorium in the spring session of Parliament.
The legislation, which would have effect from May 19, is expected to apply to all Australia-based interactive gaming operators and breaches could attract fines of up to $1.1 million a day.
The proposed legislation does not prevent the States and territories from issuing Internet gaming licences but does prevent the start-up of any new online gambling services.
Under the moratorium, only two Internet casinos - Lasseters Online and Gocorp - and 11 sports wagering operators would be able to operate in Australia.
Australia could miss out on millions in investment dollars because of the proposed Federal Government online gambling ban, with two UK Internet casino operators yesterday indicating that they were reconsidering plans to set up here.
Sportingbet.com and Flutter.com, both based in Britain, were seeking licences from the Tasmanian Government to operate in Australia.
Flutter.com, established in February last year, offers betting on a range of topical issues, such as "where will Prince William go to university?", while Sportingbet.com offers betting on sports.
Flutter.com director Mr George Monical, in Sydney to meet industry players and State and Federal Government officials, said the company had planned to invest in coming to Australia a "sizable chunk" of $70 million it recently raised.
Mr Monical said Flutter.com, whose backers include Europ@web, Chase Episode 1, UBS Capital, Index Ventures and fellow eBay investor Benchmark Capital, wanted an Australian online gaming licence because "no other reputable country" offered licences of the same calibre.
"We want to be regulated, because it makes investors and our clients feel better about dealing with us and it allows us to build a trusted brand," Mr Monical said.
"Australia's moratorium is stifling investment."
Flutter.com now operates under a regular UK bookmaker's licence, given Britain has not moved to legislate for online gaming.
Mr Monical said other countries, including South Africa and Canada, were rushing to introduce legislation regulating online gaming.
Australian wagering consulting firm Bellamy, Miller & Monypenny is understood to have recently aligned itself with the South African Government, aiming to help it introduce legislation sooner than planned.
But Mr Monical said for many online casino operators, Australia was the country of choice because of its proximity to the lucrative Asian market.
"Flutter.com predicts that within a few years Asia will account for 80 per cent of revenue," he said.
"South Africa doesn't put us in the same time zone [as Asia] and it's not as nice a place to live."
The Federal Government last week confirmed it would introduce legislation for a moratorium in the spring session of Parliament.
The legislation, which would have effect from May 19, is expected to apply to all Australia-based interactive gaming operators and breaches could attract fines of up to $1.1 million a day.
The proposed legislation does not prevent the States and territories from issuing Internet gaming licences but does prevent the start-up of any new online gambling services.
Under the moratorium, only two Internet casinos - Lasseters Online and Gocorp - and 11 sports wagering operators would be able to operate in Australia.