Gambling red flag system under fire as 'Dracula in charge'

A new system requiring Australian wagering companies to identify their own problem gamblers and cease betting inducements has drawn sharp criticism, with one opponent likening it to "Dracula in charge of a blood bank."

Advocates argue the plan to let the industry red flag its own vulnerable customers is weak and falls short of the tougher restrictions needed against "predatory" tactics. However, supporters have described the measure as a "significant" reform.

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Dracula in charge of a blood bank.

The federal government's gambling ad crackdown, which includes the red flag system, passed the lower house and is anticipated to clear the Senate. This follows harrowing parliamentary inquiry evidence detailing how gambling addicts were offered bonus bets and other incentives to continue gambling.

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I don't think it's acceptable that the bill basically gives [companies] the power to determine whether someone is a problem gambler or not.

Liberal MP Andrew Wallace, who opposed the bill, expressed distrust in gambling companies' ability to flag lucrative customers. "I don't think it's acceptable that the bill basically gives [companies] the power to determine whether someone is a problem gambler or not," he stated. The government will establish metrics for flagging based on spending, frequency, and betting patterns, with enforcement handled by the Australian Media Communications Authority (ACMA).

Further agreed amendments will prevent companies from marketing inducements to new customers for 14 days after sign-up and for three months to those who have used the self-exclusion register. Wagering staff will also be banned from earning commissions based on customer gambling activity. The issue gained prominence after allegations that gambling company employees offered illicit drugs while cultivating relationships with high-volume punters.

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significant reform