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| Moratorium to affect growth of Australian Gambling Industry |
1/17/2001 Regulated countries to benefit from industry shift says expert The moratorium on the Internet gambling industry in Australia could shift the growth of the industry to Europe and North America, according to industry observers. Internet gambling was a flourishing industry in Australia until the Senate enacted a 12-month ban, threatening to impose a permanent ban in the future. ?The Australian moratorium has (caused) a high level of uncertainty for a number of businesses that were looking to make Australia their home base,? stated Tony Cabot, an Internet gambling lawyer. Cabot believes that this move will cause many Internet gaming firms to relocate their business elsewhere. Favorable locations include Quebec, New Zealand and Great Britain. According to Cabot, increasing competition will influence Internet businesses to choose highly developed, respected regions where government regulation will increase credibility among players over tax-free havens like Costa Rica. He gives the example of the Kahnawake Mohawk reservation near Montreal. The tribe established an Internet gambling regulatory system in 1998, making it the only place in Canada where Internet gambling is legal. "That's an interesting region because of its proximity to a metropolis (Montreal), and it offers good bandwidth," Cabot said. Other options include Great Britain and New Zealand which share mature, highly respected land-based gaming industries and are currently considering whether to legalize Internet gambling within their nations' borders. South Africa has also established a federal Internet gambling regulatory board. If it legalizes Internet gambling, Cabot says that New Zealand could stand to profit from the Australian moratorium: ? It wouldn't be too hard for Australian business to jump to New Zealand.? |
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