Kindergarten children are being targeted by internet gambling websites exploiting a legal loophole that could turn every street corner, convenience store or library with a computer in NSW into a de facto bookie.
Tech-savvy kids as young as five are in the cross-hares of on-line gambling companies that say it is only a matter of time before they grow up and become a major revenue stream.
The Northern Territory based Centrebet and Betezy have approached ClubsNSW to fund and install PC gambling terminals across the state's 1400 clubs - providing Clubs millions dollars worth of commissions in return.
"As the younger generation is IT minded with even kindergarten children being taught keyboard skills, it really not a matter of if you go down this path to generate revenue from your members but when," Betezy managing director Vince McDonald said in an email to Clubs NSW.
It would bypass over 200 laws introduced to restrict gambling in NSW and anti-gambling groups fear could open the flood gates for at any public place with a PC and internet connection to be used as a new age TAB.
"We wouldn't allow drugs and alcohol in a local library or on every street corner but this is what could happen with this internet gambling proposal," Gambling Impact Society chair Kate Roberts said.
Under the plan, Centrebet and Betezy would provide the computers and internet access to the club free of charge and in return the homepage would be set to their websites.
There could also be associated promotions, with Centerbet offering clubs members $100 worth of free bets if they signed up to a new account with a credit card.
The commissions would be based on the amount gambled through the terminals, with Betezy offering clubs a staggering 50 per cent of profits while none of the losses - raising endless rivers of revenue for the cash-strapped clubs.
Because the websites are based in the Northern Territory, NSWs responsible gambling laws would not apply and it would also circumvent exclusivity licences the TAB has to be the sole provider of gambling outlets in the states clubs.
In an emails obtained by The Daily Telegraph, Betezys managing director Vince McDonald said they would provide $3 million worth of software to establish Clubbet.com
"What I am offering is an opportunity to greatly boost your clubs profits at no expense,"Mr McDonald said.
"To maximise an early return for you it would be in both our interests to get this on air quickly. We need only two weeks once a decision is made."
In a separate email, Centrebet's business development manager Peter Staunton told Clubs NSW they could provide commissions far greater than the TAB with the new model.
While the AHA denies they have been approached with the offer it is understood the internet gambling companies also want to expand to pubs and hotels, with Betezy already operating a Tezax Hold em poker website for poker groups who play in hotels.
"We have put together a proposal based on Clubs NSW and its member Clubs receiving both sign up and on-going commissions for sports bets placed by Club members via the internet or by using our new mobile phone betting application," Mr Staunton said in the email.
Clubs NSW chief David Costello rejected both Centrebet and Betezys proposals despite the financial lifeline it offered to struggling clubs.
"Every computer and mobile phone in Australia is today a target for internet gambling operations," Mr Costello said.
"Despite the financial incentive it offered, we felt that someone needed to take a stand against these cyber casinos.
"If politicians like Senators Fielding and Xenophon are genuine in wanting to further reduce problem gambling, then they should be joining forces with clubs in calling for a complete overhaul of the laws governing internet gambling."
Centrebet marketing Manager Mick Robbins said the recent Betfair High Court case challenged restrictions on them advertising and promoting in NSW.
"We're taking a good hard look at the whole sports and racing betting category and looking at the best opportunities now that it looks like the industry is being transformed," he said.
"Pubs and clubs and those sorts of places we would look at."
NSW Gaming Minister Kevin Greene is awaiting the results of a Federal Court case and a review into internet wagering being conducted by Alan Cameron.
"I'm not convinced our communities want or need more or different means to place a bet," Mr Greene said.
Greg Tingle comment
The internet gaming sites need to be closely monitored by both the Australian state and federal government in a collaborative approach. Many business sectors have the lucrative youth market well in mind, so it shouldn't surprise anyone that the gaming and online casino sector is also looking to cater to their needs also. Many online gaming and casino websites already have a free and a play for money option, so it looks like the campaigning is already well on the way.
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