Australia is planning an overhaul of its online gambling sector to stem the estimated A$700m (US$643m) the country’s residents bet on unregulated overseas internet poker and gaming sites.

Although Australia allows online wagering, which covers horse racing and sports betting, it prohibits local companies from setting up online gaming operations, which include casino games, such as blackjack and roulette, and poker. Australians spent A$18bn on gambling in 2006-07, roughly the same amount as alcohol sales. Although online gaming accounts for only 4 per cent of that, it has grown significantly in recent years.