High Court Overrules State Anti-Gambling Law

Wednesday 2nd April 2008

The Rev Fred Nile, Leader of the Christian Democratic Party, has raised concern that a loophole in the Commonwealth Constitution has enabled a Gambling Exchange to successfully challenge a State Government in the Australian High Court, overturning anti-gambling legislation it had enacted to protect it’s citizens.

The Tasmanian branch of the UK owned internet gambling exchange, Betfair, took the Western Australian Government to court last week arguing that gambling was a domestic trade and therefore can not be prohibited by any State Legislature under section 92 of the Commonwealth Constitution.

“Since when did we regard gambling a legitimate trade? This was not the intent of our Constitution. Aside from the significant social costs of gambling in our society, these gambling exchanges enable bets to be placed on the worst performing entities, thus opening the door to all sorts of corruption”, stated Rev Fred Nile. “I hold grave fears not only with regard to gambling throughout the nation, but for the very sovereignty of our States. What other State protections will be circumvented via the same mechanism?”

Rev Fred Nile also raised the issue in State Parliament yesterday:

Reverend the Hon. Fred Nile: I direct my question to the Minister for Primary Industries, representing the Minister for Racing and Gaming.

• Is it a fact that the High Court of Australia has declared unconstitutional the Western Australian legislation that outlawed the operations of Betfair betting exchanges because it imposed protectionist burdens on interstate trade and therefore contravened section 92 of the Constitution?
• Will the New South Wales Government seek a review of this High Court decision to clarify that interpretation of the Constitution because it was never the intention of the framers of the Constitution to provide special protection for gambling as a form of interstate trade?
• Is gambling a form of interstate trade when nothing is traded except money?
• How will this High Court decision affect the operations of Betfair in New South Wales?