Offshore gambling companies are using third-party websites to entice Australian addicts to resume betting, even after gamblers have placed voluntary restrictions on themselves.
The new trend, targeting those registered with the federal government’s BetStop service, has been condemned as “deeply concerning and opportunistic” by the media regulator, which has begun contacting the websites to “make them aware of Australia’s interactive gambling laws”.
Offshore gambling companies are banned from targeting Australians. But they have been paying websites that promote their inducements, link to their pages and instruct people on how to bypass the BetStop service, which is designed to block registrants from gambling.
The websites, whose URLs occasionally reference Australian cities, are paid a commission if readers follow their recommendations and gamble with overseas agencies, which are predominately based in the Dutch Caribbean island of Curaçao.
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In some cases, they appeal to addicts who may want to resume betting before their self-exclusion period expires. Lifting this ban early requires a statutory declaration confirming a registrant has received counselling from a qualified professional.
One website – promoting a gambling business that offers up to $10,800 in “welcome bonuses”, which is illegal in Australia – suggests people registered with BetStop may have made a “rash decision” and provides advice to continue gambling.
Another site claims offshore bookmakers offered “an enhanced level of security”.
Regulators in Australia have warned the opposite is true.
BetStop, which was launched in August 2023, allows people to be blocked from gambling, and bookmakers are also banned from contacting them. The scheme, which has 45,000 registrants, only applies to Australian companies.
Under Australian law, offshore gambling companies are banned form targeting Australian consumers and encouraging them to gamble.
But there are no restrictions on third-party affiliates promoting their products in return for payment.
Australia’s media regulator has been concerned about affiliate marketers promoting illegal gambling services for many years. But the targeting of people listed on BetStop is a relatively new tactic.
“This is a deeply concerning and opportunistic practice that attempts to undermine the purpose of the national self-exclusion register”, an Australian Communications and Media Authority (Acma) spokesperson said.
The websites, which Guardian Australia has chosen not to name to protect consumers, promote a lack of regulation and generous inducements. One promotes offshore companies as having to adhere to “less challenging gambling laws”.
Most websites acknowledge they are affiliated with the bookmakers they promote, and some confirm they receive commissions from them.
Nerilee Hing, a professor at CQUniversity who has researched affiliate marketing in the gambling industry, said targeting people who had registered with BetStop was “a clear example of predatory practices that aims to attract the most vulnerable”.
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“Unfortunately, the current regulatory environment has limited capacity to monitor and prevent harmful and illegal practices by affiliates, regardless of whether they are acting on behalf of Australian-licensed or offshore operators,” Hing said.
The Alliance for Gambling Reform’s chief executive, Martin Thomas, said the practice was “gravely concerning” and should be treated seriously.
“It appears a deliberate undermining of BetStop which the government repeatedly boasts as one of its key achievements on gambling reform,” Thomas said.
Kai Cantwell, the chief executive of Responsible Wagering Australia, which represents some of the biggest online bookmakers regulated in Australia, agreed.
“[Acma] should be given the power and tools they need to actually block these sites, cut off their payments and shut down the affiliate networks that funnel people into harm”.
Affiliate marketing does occur in Australia, but it cannot target those on BetStop. An inquiry led by the late Labor MP Peta Murphy called for the practice to be banned.
Consumer advocate Lauren Levin said blocking access to offshore gambling websites was ineffective as they merely returned with slightly different URLs. She instead said banks should be stopped from sending money to unlicensed gambling operators.
In Australia, Gambling Help Online is available on 1800 858 858. The National Debt Helpline is at 1800 007 007. In the UK, support for problem gambling can be found via the NHS National Problem Gambling Clinic on 020 7381 7722, or GamCare on 0808 8020 133. In the US, call the National Council on Problem Gambling at 800-GAMBLER or text 800GAM.