A law which would have introduced a one year ban on internet gambling in Australia has been narrowly defeated in the country’s Senate. The Federal Government had hoped to block all new on-line gambling sites and services by forbidding state and territory governments from granting licenses to such businesses.

Despite the defeat of the Interactive Gambling Moratorium Bill, it is still possible that the government will seek a total ban on internet gambling businesses in Australia. The intention of imposing a one-year period for a ban was to use that year to examine the feasibility and likely effects of a total ban.

An opponent of internet gambling legislation is the country’s Internet Industry Association. The Association’s executive director Peter Coroneos said:

“The risk is that promoting even the possibility of an online ban will undermine industry confidence at a time when we are most in need of reassurance, as well as deter international investment in Australian broadband services.

"The very prospect of a ban will certainly jeopardise our international reputation and send a message that the Australian government does not understand the global, instantaneous and decentralised nature of the Net. Attempting to force ISPs to block sites will merely add to the costs of delivery of online services to businesses and consumers here without achieving the objective of protecting Australian gamblers."

According to Websense, a company that produces internet monitoring software, the number of independent gambling sites world-wide is between 350 and 700. The total revenue of on-line gambling sites this year is expected to reach $2.2 billion, according to Christian Capital Advisors.

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