Ladbrokes Bets on AU Gambling Loophole

Online gambling powerhouse, Ladbrokes, is betting on a loophole in Australian web gaming legislation. The popular British-owned site is opening its Gibraltar-based online poker tables to Australian players, the first strategic move in what is expected to be a future bid for a wagering license in the state of Victoria. According to Australian lawmakers, Ladbrokes’ action is illegal.

Australia’s Interactive Gambling Act of 2001 (IGA) prohibits online gambling operators from extending their services to anyone “physically present in Australia.” Offshore partners and subsidiaries are not exempt from the law. They are, however, rarely prosecuted and, therefore, provide savvy online gambling companies willing to bet the odds a potentially lucrative loophole. Still, should Ladbrokes be one of the chosen few, its decision to disregard the IGA could cost it as much as $1.1 million per day.

When questioned about the obvious risk the company was taking, a Ladbrokes spokesperson said, "We have no legal restrictions for customers playing from Australia and I can confirm that [players] are able to use any of our online facilities."

Ladbrokes isn’t the only online gambling operator to overlook web wagering regulations in Australia. Estimates suggest an annual $300 million is spent by Australians in online casino sites.

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