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Govt Rules Out Compensation for Cyber Casino Operators
The Australian Government today brushed off threats of compensation claims over its Internet gambling ban as the minor parties warned it faced a rocky path through the Senate. The government plans to ban Australians from betting with local on-line gambling operators but will allow virtual casinos to target overseas customers.
Local on-line sports and race betting also would be banned, in a blow for companies such as Victoria's Tabcorp and Alice Springs-based Centrebet, which has not ruled out a compensation claim.
Although the move is a win for gaming operators such as Kerry Packer's e-corp and Lasseters Online, which target international clientele, the existing freeze already has taken its toll. Tasmania's Federal Hotels and Gocorp were forced to close down their on-line operations last year and Gocorp has since merged with Lasseters.
Federal Hotels managing director Greg Farrell said the company spent more than $20 million developing its on-line operations and was not sure if they could be resurrected if the new regime passes the Senate.
"It means we have suffered a huge economic loss for a result that will be identical to the situation we were operating in before," he said. The company, which had never planned to sign up local players, was still to decide whether to to claim compensation or not.
But Communications Minister Richard Alston said there was no obligation to pay compensation for companies that could close because of the ban.
"There is no basis for paying compensation because the mere fact that someone wants to start up a business is not a reason to allow them to do that, otherwise we would be setting up plenty of heroin farms to create new jobs," he said.
SOURCE: AAP
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