South Australia mulls regulatory overhaul
Regulator plans a state-wide crackdown on the practice of offering unsolicited credit by online sportsbooks
South Australia’s Independent Gambling Authority (IGA) is proposing a ban on offering unsolicited credit for gambling as part of a wider crackdown on sports betting operators.
The state’s gambling regulator this week announced plans to overhaul South Australia’s Gambling Codes of Practice after a recent report criticised operators for allegedly offering unsuitable customers tens of thousands in credit.
The new rules could come into force as early as 1 January 2016 and would see operators which violate the code faced with penalties of up to $100,000 (£47,000).
In addition to a ban on unsolicited credit, changes to the Code announced by the IGA include the offering of credit only after a rigid due diligence process, disclosure of spotters’ fees and a requirement to process withdrawals immediately.
Business services and consumer minister Gail Gago this week welcomed the news from the regulator as she criticised the practices of some online sports betting companies.
“These changes aim to combat poor practices by operators which were revealed in a recent report,” Gago said.
“Some of the documented practices beggar belief, including offering more and more credit even when account holders are already in arrears and making it hard for account holders to withdraw money from their account,” she added.