Tough restrictions on gambling may bring more harm than good. That’s the opinion of pro-gambling advocates, including casino operators and even gambling experts. Australia is no exception and while one of its states, New South Wales (NSW), seeks to combat problem gambling and crimes such as money laundering, enhanced restrictions are pushing some gamblers to illegal establishments.
Changes to Gambling Regulations Boost Illegal Gambling
Tighter controls on spending, including the decrease in the cash casinos would be permitted to accept from one gambler from AU$5,000 ($3,176) to AU$1,000 ($635) are part of the ongoing changes to the gambling sector in the state. Ultimately, the changes seek to further decrease the cases of money laundering, while protecting vulnerable individuals from excessive gambling. Not unexpectedly, those changes would affect The Star Entertainment Group, as well as Crown Resorts.
Besides strengthening the rules, both politicians and law enforcement vowed to combat illegal gambling and related criminal activities. In the last year alone, the fight against illegal gambling has intensified and as the Daily Telegraph reported, five illegal casinos have been raided by law enforcement.
The fight against illegal gambling saw police detain a number of people involved in such activities. In one notable case, a scared casino patron who gambled more than he could afford at an illegal venue contacted the police saying that he feared for his life as he couldn’t settle a gambling debt he accumulated.
While the man was rescued from the gambling venue, which was established at a luxury apartment, he didn’t agree to cooperate with law enforcement since he was an undocumented resident. The person in question likely left the country but that’s far from being an isolated case, considering that law enforcement detained many individuals involved in intimidation, kidnapping and other unlawful activities related to gambling debt collection.
High-Stake Games Take Place at Illegal Venues Across Sydney
While the presence of illegal gambling isn’t anything uncommon, despite how strict the rules are, draconian measures have an even more devastating effect. Per the Daily Telegraph’s recent report, citing unnamed underworld sources, there are high-stakes games taking place in luxury hotel rooms and houses used as gambling venues across Sydney.
Such poker games, taking place in illegal gambling establishments, have buy-ins that start at AU$50,000 ($31,800). Ensuring the convenience of visitors, those illegal gambling dens also offer complimentary drinks and food.
Not paying taxes is the least concern that illegal gambling venues raise. Such establishments are often tied to unlawful activities like money laundering. To make matters worse, such establishments do not protect the customers in any way, on the contrary, illegal gambling venues may purposefully permit individuals to gamble more than they can afford with the goal to make them pay high-interest loans.
Considering the ongoing fight led by law enforcement, New South Wales isn’t giving up in the fight against illegal gambling.