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Australia’s Northern Territory gambling regulator faces scrutiny

Rajashree Seal
Written by Rajashree Seal

Australia’s Northern Territory Racing and Wagering Commission (NTRWC) has faced increasing criticism for its close ties to the gambling industry it regulates. Critics say the commission may have conflicts of interest, enforces rules weakly, and issues penalties that are far too light. This has raised concerns that people affected by gambling harm are not adequately protected, leading to calls for the establishment of a stronger national gambling regulator.

The Darwin-based NTRWC licences more than 40 major online bookmakers, including Sportsbet, Ladbrokes, and Bet365, overseeing an estimated annual turnover of AU$50 billion (US$33 billion). Despite this, the commission meets only once a month, has no full-time staff, and last published an annual report in 1993.

The commission is responsible for ensuring licensed operators comply with conditions and their responsible gambling codes. However, many of Australia’s largest betting agencies are headquartered in Darwin to benefit from lower taxes and regulatory costs, raising concerns about minimal oversight.

Allegations of industry bias

Critics have repeatedly warned that the NTRWC is too closely linked to the gambling industry it regulates. Some commissioners have personal ties to horse racing, with former members owning or partially owning racehorses.

Earlier this year, Chair Alastair Shields admitted in an interview that he had accepted hospitality from bookmakers and held a Sportsbet account.

Independent MP Andrew Wilkie described the commission as “useless,” while consumer advocate Lauren Levin warned that gambling harm victims are being failed. “How do you run a regulator for the country that’s got the highest per capita gambling losses in the world without full-time staff?” she said.

Lax enforcement and lenient penalties

Analysis by ABC’s Four Corners of 170 commission decisions since 2017 found that two-thirds resulted in no breach findings, and no operator has ever had its licence revoked. Critics argue that penalties are too low to deter misconduct.

In one case, Ladbrokes and BetEasy were fined less than AU$80,000 each despite making millions from a problem gambler who stole client funds to bet. “Those penalties are equivalent to speeding tickets,” said lawyer Natalija Nikolic.

Similarly, BlueBet profited over AU$700,000 ($462,000) from a problem gambler in four months but was fined only AU$53,380 ($35,200) by the commission.

Calls for a national regulator

Concerns about conflicts of interest and insufficient oversight have led to calls for a national gambling regulator. A federal parliamentary inquiry in 2023 recommended the establishment of a national online gambling regulator and ombudsman, bypassing the NTRWC. The Albanese Government has yet to respond.

Independent MP Kate Chaney, who served on the inquiry committee, said: “There’s a really cosy relationship between the NTRWC and the industry there. It seems like it’s a body that’s much more about serving industry than serving the community.”

The commission defends its practices. Kai Cantwell, CEO of the betting industry lobby group Responsible Wagering Australia, said: “There’s this misconception out there that they are not a robust regulator. They certainly are. They certainly have strong consumer protections and a strong understanding of the online environment in which we operate.”

Commissioners’ industry connections

The NTRWC has six commissioners, including Shields. Six of the past ten commissioners have owned or part-owned racehorses. When the commission was established under the 1983 Racing and Betting Act, horse owners were prohibited from becoming commissioners. By the time Shields was appointed in 2018, this restriction had been removed.

Former commissioner Amy Corcoran, who joined in 2018, was a part-owner of at least two racehorses while serving. She left the commission in 2024 and now works at the Darwin-based betting agency Dabble.

The Northern Territory government has confirmed an ongoing review of potential conflicts of interest within the NTRWC. “It would be inappropriate to make further comment while the review is underway,” a department statement said.

Rising gambling harm in Australia

A recent study found an increase in gambling-related harm across Australia. The Australian Gambling Research Centre (AGRC) of the Australian Institute of Family Studies (AIFS) did the 2024 National Gambling Prevalence Study Pilot. They asked 3,881 persons and discovered that 65 percent of them had gambled at least once in the past year.

The research showed that more than 15 percent of adults experienced gambling-related harm, including feelings of guilt, borrowing money to continue gambling, or trying to win back lost money. High-risk gamblers were particularly affected, with 16 percent reporting suicidal thoughts and 66 percent facing serious financial stress.

Dr Gabriel Tillman, Research Fellow at AGRC, said: “We know that gambling can cause deep harm to individuals and families, profoundly impacting relationships, mental health, work and other aspects of life. The fact that more than 3 million Australian adults are experiencing harms from their gambling should concern Australians.”

AIFS Director Liz Neville added: “This pilot study gives us a clearer picture of the scale of the issue, who is most affected, and how policy and regulation need to keep pace. Gambling is pervasive, and we need a more robust approach to helping families and communities, as well as the individuals themselves.”

Growing calls for stronger oversight

The NTRWC is facing increasing attention as Australians continue to lose more to gambling per person than almost anywhere else in the world. Critics say that personal ties within the commission, a lack of full-time staff, and low penalties make it difficult for the regulator to do its job properly.

With millions of Australians experiencing gambling-related harm, there is rising pressure for a stronger national regulator to ensure consumer protection and hold the industry accountable.

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