Over the past decade, the number of Australians suffering from a gambling problem has doubled. As of 2023, about 40% of Australians gamble weekly, spending an average of $109 a day on pokies, lotteries, machines and wagering. Aussies lose more than $25 billion per year on legal forms of gambling, making up the largest per capita losses in the world. And if that wasn’t enough, their gambling costs extended well beyond just financial. There are social, emotional and psychological costs, too, wherein a person’s gambling addiction often turns into a family burden, affecting work, personal life and more. In Victoria, the social costs of gambling are estimated at around $7 billion.
A self exclusion registry is one potential solution—albeit not a foolproof one—to help addicts rein in their gambling. Responsible gaming and consumer protection tech company IXUP (ASX: IXU) has been actively pursuing opportunities for its regulatory tech. For gambling specifically, the Company has launched BetStop, a National Self Exclusion Register.
Chairman of IXUP, Julian Babarczy, said, “IXUP is proud to be involved with such a positive consumer protection solution, noting that, for the first time ever in Australia, consumers now have access to an independently operated system which protects many of the community’s most vulnerable.
“We are proud to have been instrumental in working with the ACMA on the successful launch of this safeguard, as well as the vitally important ongoing operation of the solution. I would like to thank the ACMA for their vision and professionalism in seeing this important consumer protection solution through to a reality.”
IXUP has a suite of regulatory tech, sports betting and similar products in Australia and the US. BetStop, the National Self-Exclusion Register, is being operated by IXUP under an exclusive contract with the Commonwealth Government of Australia via the Australian Communications and Media Authority (ACMA). It is now fully operational and available to members of the Australian public who want to exclude themselves from all licensed online and phone wagering providers in Australia.
People who want to exclude themselves from gambling can do so either online or by phone without any charges. The self-exclusion durations vary, starting from three months and extending to a lifetime. The management and upkeep of this system are overseen by IXUP. When a person enforces self-exclusion, gambling providers in Australia are obligated to prohibit them from placing bets or establishing new betting accounts, and the providers cannot send promotional materials.
Babarczy added, “With the successful launch of the service, IXUP’s RegTech business division is now Australia’s leading provider of responsible gaming and consumer protection technology and we are excited by the opportunities we are currently pursuing both in Australia and internationally.”
The register is a result of the Company’s completion of the Big Village Australia asset (BV Assets) acquisition, encompassing the intellectual property and associated government contracts administered by the ACMA to operate the National Self-Exclusion Register. In doing so, IXUP has become the sole provider of Australia’s National Self-Exclusion Register.
The BV Assets are projected to add roughly $5 million to IXUP’s group revenue during FY24, along with enhancing cash flow.
This is much needed, seeing IXUP’s FY23 results. In FY23, customer receipts amounted to $681.3k. The Company spent $5.5 million on staff costs and $4.8 million on corporate costs. Its expenses amounted to a significant $9.3 million. In comparison, the Company ended the year with only $1.5 million in cash.
As IXUP bids to help Aussies control their gambling problems with BetStop, it hopes that its own gamble on the BV assets pays off.
Alinda is a Business Reporter for The Sentiment
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