Independent Member for Nelson, Meg Webb, has strongly criticised the state government for granting a five-year gaming licence to online bookmaker Betr, which is moving its operations from the Northern Territory to Tasmania.

In a media release, Ms Webb said the government has put Tasmania’s brand and the community’s welfare at risk. She stated that the online gambling industry appears to see an opportunity to exploit what she called the state’s “weaker regulatory and taxation systems”.

Betr’s move was announced to the Australian Stock Exchange on Monday, with the new licence from the Tasmanian Liquor and Gaming Commission taking effect on Tuesday, 7 July. The company said the relocation supports its “long-term strategic, governance and responsible wagering priorities”.

The decision follows a move by the Northern Territory government last year to double the annual tax cap on corporate bookmakers, which was met with backlash from the gaming industry.

Ms Webb’s concerns were heightened by admissions from Treasurer Eric Abetz that the state’s current regulations need updating. Mr Abetz said in a statement that a number of existing Tasmanian regulatory requirements “do not appropriately reflect the technology, operating models and governance arrangements of modern online wagering businesses”. He added that the government would “refine” legislation to provide “appropriate guardrails and modern systems”.

Ms Webb called it “reckless and irresponsible” to lock in a five-year licence before having stronger regulations in place. “Clearly, Betr has identified Tasmania as a soft touch,” she said in her statement.

Federal independent MP for Clark, Andrew Wilkie, also condemned the move, accusing the Tasmanian government of “rolling out the red carpet to a predatory industry”.

Treasurer Abetz welcomed Betr’s relocation, stating it “was made possible because Tasmania is open for business”. He said that while the service is already available to Tasmanians, “we will now reap the rewards of having local jobs”. Betr’s chief executive, Andrew Menz, said the company looked forward to contributing to local employment and investment.

The original story was reported by ABC News.