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The Allen Consulting Group was commissioned by the Australian Government Department of Families, Housing, Community Services and Indigenous Affairs (Fa HCSIA) to undertake a literature review of the current trends and regulation of interactive gambling, both in Australia and overseas.The purpose of this study is to analyse and report on publicly available information regarding current trends in interactive gambling, including: Figure ES.1 illustrates how these definitions interrelate.

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This terminology has been applied throughout this report to ensure consistency of language and to aid reader understanding.It is not strictly in-line with definitions in the Interactive Gambling Act 2001 (the IGA).For instance, under the IGA interactive gambling services are prohibited from being offered to individuals physically located in Australia, however the IGA also defines those services excluded from prohibition.In the IGA, these excluded services are services because the IGA defines all interactive gambling as those services prohibited (therefore, only prohibited services are considered to be interactive gambling).This study found that, in the period since the IGA was reviewed in 2004, the potential differences between Internet wagering and Internet gaming (the periodic versus repetitive style of play) are diminishing.

The extent of Internet wagering opportunities now available to Australians at all times of the day appears to be transforming this style of play away from ‘periodic’ play.

In Australia the primary forms of interactive gambling are legal forms of interactive wagering on sporting events and racing.

The sporting betting market has grown substantially in recent years, driven, in part, by growth in the use of the Internet and mobile phones as mediums for placing bets.

In this report, interactive gambling is used as an overarching term, and therefore is not used in the same way as in the IGA — ‘excluded services’ in the IGA are referred to as ‘legal services’, primarily because the use of the term excluded is confusing when referring to services that are allowed.

Figure ES.1 shows which types of interactive gambling are exempt under the IGA (which are Internet wagering, phone wagering and wagering via digital television).

Figure ES.1: Framework for defining interactive gambling The IGA is the primary legislation in Australia for interactive gambling.