PokerStars claimed about a possible exit of Australian market

It became known that the biggest online poker room in the world PokerStars my leave Australian market in case the amendment about gambling prohibition appears in Australian law. Amaya company, which owns PokerStars confirmed the information that Australian players soon probably won’t be able to play in the poker room.

Currently, the iGaming market of Australia is considered as a 'gray market' as there are no not spelled out the status of legal and illegal online casinos and poker rooms in the law regulating gambling issued in 2001. However, last week the Australian parliament started to think of making amendment to this legal act, according to which most operator, which aren’t licensed will be taken tough measures. Here is the quote of the amendment:

'The law prohibits games of chance, which have factors of random outcomes, such as blackjack, roulette and poker. Sportsbooks and lotteries remain without any restrictions'.

According to Alan Tudge, Minister of Human service of Australian, more than 2.7% of poker players have problems with addiction to gambling.

Besides, one of the reasons of Australian politicians aim to prohibit the activity of foreign gambling operators is the outflow of money into the pockets of the operators. The thing is last year Global Betting and Gaming Consultants claimed that Australia is biggest gambling country in the world. It turned out, that its residents spend more than $860 per year on gambling. As gambling market is almost completely unregulated, this money doesn’t fill the budget of the state.

There used to be hope that poker would stay out of this amendment as it is a game of skill, but the the presence of luck factor (in short run there is an element of luck) means that the gambling law will affect poker as well.

In case the amendment is passed, PokerStars and some other operators, such as 888.com and Party Poker will have to leave Australian market to not risk losing the licenses in other jurisdictions. The thing is if the operator continues his work without a proper license, there is risk of revocation of other licenses, for instance, in New Jersey. That’s why the company is unlikely to take the risk of continuing to work in Australia. Besides, in case the Australian authorities figure out the fact unlicensed operator continues to work on the territory of country, the company will get fined for each operating day in the amount up to $1,350,000. Issuing of the warnings and messages about violations is on the organization called ACMA (Australian Communications and Media Authority).

By the way, the first step towards it was already made. Back in August Poker Stars stopped financing Aussie Millions poker series, which takes place in Melbourne in Crown casino annually.

As Daniel Sebag, Amaya’s chief financial officer, at the moment Australian market with a population of 24,000,000 people gives 2.5% of the income of the company. According to his words, currently his employers analyze possible influence of the amendment to PvP (Players vs. player) games, but the company leans towards leaving Australia entirely. Surely, it’s possible to get the license and start operating on the fifth continent legally but according to this Act on interacting gambling, only some kinds of sports betting and lotteries remain legal.

Despite possible exit of Australia, PokerStars keep working on the expansion of the market. For instance, in the nearest time the poker room plans to start operating in Portugal.