POLi’s Ties to Online Gambling Sites Causes A Controversy
One of the subsidiaries of the state owned postal service firm in Australia is being accused of earning great amounts of cash by enabling local online players to fund their accounts at illegal international internet gaming venues with money. This issue has been brought to the light after the newspapers reported that there is proof that POLi Payments Limited, which is subsidiary of Australia Post, which is owned by the state, has earned 5 million dollars in revenues during the previous eighteen months by making payments for online international casinos that are prohibited in Australia.
According to the IGA (Interactive Gambling Act) of Australia, which regulates all stances of online gaming, states that online sports wagering is allowed for operators who have a local license. On the other hand, all kinds of casino gaming and poker online venues are prohibited. Regardless of these laws, there are hundreds of online casinos that are recommending POLi for Australian players as a reliable way of transferring money to their accounts on these international illegal websites. The reports also stated that these websites are targeting Australian players by offering them bets in Australian Dollars and promoting POLi as online of the fastest and most reliable ways through which they can fund their accounts.
POLi Payments was acquired by Australia Post back in October of 2014 and according to a spokesman representing the Australia Post, the company is acting in respect and accordance to the Interactive Gambling Act of the country as well as any other gaming laws. This statement was made on the fact that the POLi Payments does not advertise or provide any internet gambling service of any kind. On the other hand, the representative also stated that the internet casino industry is not an area of business that the company plans to operate in for a long time. He also noted that the five million dollars earned by the company through the processing of internet casino payments is just one drop in the bucket, when compared to the annual revenue of Australia Post which amounts up to 6 billion dollars.
This report does not indicate the 1st time that POLi Payments has been put in a tight spot because of its connected to the online gambling industry, as it had to defend its relationship with Betjack, which is a scam internet wagering site. This happened in the months that led up to the acquisition of the payment provider in 2014 by Australia Post. The independent Senator, Nick Xenophon, jumped on the chance and urged Australia Post to provide an explanation regarding its dealings with online casinos. He also claimed that the state owned company is participating in the growth of the nationwide gambling addiction. This comes up at a time where the government of Australia is conducting a review on its IGA, which might result in recommendations that can change the landscape of the entire industry.