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Tasmania Battles Commonwealth

12/13/2000

Online Gaming argument develops into argument about State powers

The Tasmanian Government is set for a legal battle with the Commonwealth as the issue of online casinos develops into an argument about State powers.
The decision by the Australian Senate last week to issue a moratorium on Australian-based online casinos will deprive Tasmania of $350 million in investment and 250 jobs.
The legislation has forced the closure of Tasmania's only operating online casino, the Southern Cross Casino, which faces a million-dollars-a-day fine if its fails to comply.
The moratorium on online casinos is set until May 19, 2001, at which point it appears that it will be replaced with a permanent ban.
Mr Greg Farrell, managing director of the Federal Group - operators of the Southern Cross online casino as well as Tasmania's two bricks-and-mortar casinos, Wrest Point in Hobart and the Country Club in Launceston - said it was likely the company would take legal action for compensation over the $20 million it invested to establish the online casino.
Federal Group has been involved in the gambling industry in Tasmania for nearly 30 years. Farrell stated, "We believed we approached this in a totally professional way and produced a world-class product entirely consistent with what we understood was the Government's intent. Last week we were operating a legal business and now the Government has turned it around and made it illegal."
Tasmanian Deputy Premier, Mr Paul Lennon, objected to the State??s decision. He stated emphatically, "This is a State's rights issue - what right to they have to pass judgement on us?" Mr Lennon said. "What right do a group of senators have to stop $350 million in investment and 250 jobs in this State and then turn around in the next breath and criticise us, saying we are a welfare-dependent State?"

Tasmania Battles Commonwealth

Online Gaming argument develops into argument about State powers

The Tasmanian Government is set for a legal battle with the Commonwealth as the issue of online casinos develops into an argument about State powers.
The decision by the Australian Senate last week to issue a moratorium on Australian-based online casinos will deprive Tasmania of $350 million in investment and 250 jobs.
The legislation has forced the closure of Tasmania's only operating online casino, the Southern Cross Casino, which faces a million-dollars-a-day fine if its fails to comply.
The moratorium on online casinos is set until May 19, 2001, at which point it appears that it will be replaced with a permanent ban.
Mr Greg Farrell, managing director of the Federal Group - operators of the Southern Cross online casino as well as Tasmania's two bricks-and-mortar casinos, Wrest Point in Hobart and the Country Club in Launceston - said it was likely the company would take legal action for compensation over the $20 million it invested to establish the online casino.
Federal Group has been involved in the gambling industry in Tasmania for nearly 30 years. Farrell stated, "We believed we approached this in a totally professional way and produced a world-class product entirely consistent with what we understood was the Government's intent. Last week we were operating a legal business and now the Government has turned it around and made it illegal."
Tasmanian Deputy Premier, Mr Paul Lennon, objected to the State??s decision. He stated emphatically, "This is a State's rights issue - what right to they have to pass judgement on us?" Mr Lennon said. "What right do a group of senators have to stop $350 million in investment and 250 jobs in this State and then turn around in the next breath and criticise us, saying we are a welfare-dependent State?"
Tasmania Battles Commonwealth

Online Gaming argument develops into argument about State powers

The Tasmanian Government is set for a legal battle with the Commonwealth as the issue of online casinos develops into an argument about State powers.
The decision by the Australian Senate last week to issue a moratorium on Australian-based online casinos will deprive Tasmania of $350 million in investment and 250 jobs.
The legislation has forced the closure of Tasmania's only operating online casino, the Southern Cross Casino, which faces a million-dollars-a-day fine if its fails to comply.
The moratorium on online casinos is set until May 19, 2001, at which point it appears that it will be replaced with a permanent ban.
Mr Greg Farrell, managing director of the Federal Group - operators of the Southern Cross online casino as well as Tasmania's two bricks-and-mortar casinos, Wrest Point in Hobart and the Country Club in Launceston - said it was likely the company would take legal action for compensation over the $20 million it invested to establish the online casino.
Federal Group has been involved in the gambling industry in Tasmania for nearly 30 years. Farrell stated, "We believed we approached this in a totally professional way and produced a world-class product entirely consistent with what we understood was the Government's intent. Last week we were operating a legal business and now the Government has turned it around and made it illegal."
Tasmanian Deputy Premier, Mr Paul Lennon, objected to the State??s decision. He stated emphatically, "This is a State's rights issue - what right to they have to pass judgement on us?" Mr Lennon said. "What right do a group of senators have to stop $350 million in investment and 250 jobs in this State and then turn around in the next breath and criticise us, saying we are a welfare-dependent State?"
Over the past two years, the Tasmanian Government has granted five online casino licences, to: Federal Group (a 28-year gambling industry in Tasmania), Mr. Kerry Packer's PBL, Tabcorp, Tattersall's and a sports betting business, Betworks. Together, their investment in the online casinos in Tasmania was estimated at $350 million.
Mr Lennon said he could understand a Commonwealth push for "harm" minimization, but said that Tasmania's regulatory framework for the operation of online casinos was one of the strictest in the world and could have become an international blueprint for online gaming regulation.

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