Scrutiny Mounts over Australian Regulator’s Ties to Betting Industry

Australia’s leading gambling regulator is facing rising pressure, with allegations of conflicts of interest, lax supervision, and an overly friendly relationship with the betting companies it is supposed to oversee. Such potential conflicts of interest could severely undermine the nation’s efforts to enforce tighter controls over its gambling sector, as harm rates recently reached an all-time high.

Commissioners Admitted to Close Ties to the Industry

The Northern Territory Racing and Wagering Commission (NTRWC) licenses over 40 online bookmakers, including high-profile players like Sportsbet, Ladbrokes, and Bet365. With most of the major online operators headquartered in Darwin due to lower taxes and compliance costs, the NTRWC has become Australia’s de facto national online wagering regulator. 

A months-long investigation conducted by the ABC program Four Corners has exposed a pattern of possible conflicts and complacency within the commission. Among the most striking revelations is that several commissioners have owned or co-owned racehorses, a practice forbidden under the body’s founding legislation but later permitted after the law was amended.

Alastair Shields, the commission’s chair since 2018, admitted earlier this year that he had accepted hospitality from bookmakers and maintained a betting account with Sportsbet. He reportedly declined to answer questions regarding his work hours or delays in complaint handling. The commission, which has not issued an annual report since 1993, is staffed mainly by part-time appointees.

Gambling Harm Remains a Pressing Issue

Consumer advocates and lawmakers say the situation cannot continue. Federal independent MP Andrew Wilkie called the commission useless. Meanwhile, gambling reform advocate Lauren Levin questioned how a nation with the highest gambling losses per capita in the world could rely on what she deemed an under-resourced, part-time regulator. Levin further noted that the NTRWC did not align with international standards and faced significant deficiencies.

We’ve got regulation that was set up to develop the betting and racing industry. That was its sole purpose, not consumer protection.

Lauren Levin, consumer advocate

The ABC’s analysis of 170 commission rulings since 2017 revealed that in two-thirds of these cases, no breaches were recorded against operators, and no bookmaker has ever had its licence cancelled or suspended. Industry lobbyists, however, have pushed back. Kai Cantwell, chief executive of Responsible Wagering Australia, rejected accusations of leniency, lauding the NTRWC’s work. 

They [the NTRWC] certainly have strong consumer protections and a strong understanding of the online environment in which we operate.

Kai Cantwell, Responsible Wagering Australia CEO

The optics of a regulator populated by racing enthusiasts and industry veterans are hard to ignore. Six of the previous ten commissioners have owned a racehorse, and Amy Corcoran, a former member, later joined a Darwin-based betting company. The Northern Territory government confirmed an ongoing review of possible conflicts of interest in the NTRWC but refused to provide further comments.