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Western Australia\’s ban of betting exchanges may be in breach of free competition laws

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As reported by The Virtual FormGuide, the Betting and Racing Legislation Amendment Bill 2006 may be in breach of Section 92 of the Federal Constitution which guarantees freedom of trade between the Australian states.

Western Australia had already been found in breach of free competition guidelines in the wagering sector when in 2005, the National Competition Council commented adversely on the state\’s failure to legislate for more than one totalisator license.

The Bill N° 146 aims to make an offence for West Australian punters to bet through a betting exchange. Betfair, which is now properly licensed and regulated in another Australian state, Tasmania, will be effectively banned.

It will be interesting to see if the NCC will allow for a further restriction of competition in the wagering sector in Western Australia.