Here’s hoping a solicitor or knowledgeable member reads this…
Does anyone know whether a ‘Betting Club’ would fall under control of ASIC and the Corporations Act considered as a Managed Investment Scheme.
The ‘Betting Club’ takes money from members, advertises its services to attract more members and money and receives a commission only on winnings. It is wagering (gambling) with no offer of a guaranteed return.
If not considered a Managed Investment Scheme, can you suggest any other legislation that may be applicable.
It is proving near impossible to find a definitive answer as to whether operating a ‘Betting Club’ is legal.
Surely you need a licence before you can operate a betting establishment??
And you will have mucho problems getting a licence…so it would be an illegal activity without the licence….thus leading to criminal charges.
It is not a betting establishment. No prices are being offered. All bets are to be put through licensed Australian bookmakers and betting agencies. It is just a pooling of funds and group betting for those who cannot do it themselves.
Re the Department of Gaming & Racing, am awaiting a formal response from the Assistant Director. They seem a little concerned but cannot offer any legislation preventing the betting club from operating. In any case, they did mention that a ‘Commission Agent’ can operate without regulation and can undertake a similar operation to a betting club.
It seems impossible to find a definitive response on this one and, believe me, I have searched a lot of legislation and written to ASIC and every State and Territory gaming and racing authority and fair trading regulators.
The most popular response to date is “Seek independent legal advice”. That advice has said there is no problem with it but I can’t believe it would be that simple.
I can’t see that much wrong with it. There are only three potential problems I can see…
The first being size of the outfit. If you start taking to much money in ASIC will be all over you.
And also State Gambling Bodies might start to have an interest in it too. And since they control poker machines and other forms of gambling, they are quite adapt at raising funds! They probably won’t do anything though (as you are already adding to their revenue by betting in the first place)unless their political masters tell them to jump.
The last problem is media. And whever the media s politicans are usally not that far behind and that could mean legislation, esp. if ACA or TT dtart to hammer the issue.
IWhile I wouldn’t do it, if you started small and kept quiet about it I think you could do something.