Northern Territory Watchdog Bans Gifts from Betting Firms amid Ethics Overhaul
Northern Territory regulators have temporarily barred all gifts and hospitality from bookmakers while they rewrite their ethical code.
LISTEN TO THIS ARTICLE:The Northern Territory Racing and Wagering Commission (NTRWC), which licenses more than 40 online bookmakers, has announced an immediate freeze on accepting any gifts, tickets or hospitality from betting companies while it finalises a new code of conduct. The move follows sustained scrutiny of the commission’s ties to the gambling industry and a series of investigations that raised questions about conflicts of interest.
Commission chair Alastair Shields said the pause on hospitality is part of “a bigger push to strengthen independence and openness”. He added: “The new code will set up the structure for managing relationships with operators to ensure decisions are made free from bias or outside influence”. Shields confirmed the code will require clearer processes for declaring interests and recusal, but said it will not impose a blanket ban on racehorse ownership by commissioners.
The decision was prompted by reporting that showed several commissioners had previously accepted hospitality from bookmakers – including attendance at the Darwin Cup – and that six of the past ten commissioners have owned or held interests in racehorses. Those revelations intensified criticism that the regulator’s part-time membership model and permissive rules leave it poorly equipped to police a sector estimated to be worth roughly $50 billion nationally.
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Government Review Targets Regulator Independence
The Northern Territory government confirmed a formal review of the NTRWC is underway to examine conflict-of-interest rules, gift policies and eligibility criteria for commissioners. Officials said they expect to publish key findings next year. In the interim, the commission’s staff and members will refrain from accepting any industry-provided perks until the updated code is finalised.
Consumer advocacy groups and some political figures have long argued that the commission’s structure – a largely part-time board overseeing major online operators drawn to the territory for favorable tax and licensing conditions – creates structural weaknesses. Critics point to slow complaint handling, limited financial penalties for breaches and a lack of transparency as evidence that the system needs reform.
“When a regulator oversees a multi‑billion dollar industry, even the appearance of cosy relationships undermines public trust”, said Professor Jane O’Connell, a specialist in gambling regulation at the University of Sydney. “A code that mandates full disclosure, independent oversight and meaningful sanctions will be essential to restoring confidence.”
Industry reaction has been muted. Several licensed operators said they welcomed measures that clarified the boundaries of acceptable conduct, while also stressing the need for proportionate rules that do not disrupt normal stakeholder engagement. Observers say the commission must balance transparency with the practicalities of regulating horse racing and wagering operations that rely on ongoing industry contact.
Shields defended the commission’s longstanding engagement with the racing community, saying ownership interests can be managed through disclosure and recusal. “Declaring ownership and stepping back from decisions where there’s a conflict is the right way to maintain accountability while benefiting from commissioners’ racing expertise”, he said.
Despite those assurances, consumer groups and some lawmakers are pressing for more far‑reaching changes, including a professionalised, full‑time commission with stronger investigative and enforcement powers. The review will be watched closely by other states and territories as Australia continues to grapple with the social harms linked to online wagering.
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New Code Expected Early Next Year
Officials say the updated code will be completed in the coming months and that the government review will report publicly next year. If adopted, the new rules could include stricter reporting requirements, defined thresholds for disqualifying interests and clearer guidance on permissible interactions between commissioners and licensees. How the commission enforces the code – including the size of penalties and speed of disciplinary action – will be central to judging whether the reforms materially strengthen oversight.
“This is a pivotal opportunity for the Northern Territory to set a higher standard for gambling governance nationally”, said Sarah Thompson, director of a consumer advocacy group. “The credibility of any regulator rests on independence, transparency and the ability to act decisively when operators breach the rules.”
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