Online gambling in Australia

Background

Australia is an interesting gambling jurisdiction. Famed for their propensity to gamble and presented with a myriad of terrestrial gambling options Australian’s per capita annual gambling spend is amongst the highest in the world. It holds the dubious honour of having the highest density of slot machines (or ‘pokies’ as they are colloquially referred to) in the world.

Yet despite the government’s very tolerant position toward local gambling options, they are not so happy with Australians gambling online – particularly with offshore operators.

Australia was one of the first countries in the world to enact legislation drafted to specifically deal with the issue of online gambling. Back in 2001, the Interactive Gambling Act (the Act) became law. Largely prohibitive in nature, the Act made it illegal for any online gambling operator to offer their product to Australian residents in the absence of a locally acquired license to do so. Local licenses allowed for the provision of online sports betting only.

Lax enforcement through the early 2000’s saw a proliferation of international operators participating in the market, offering casino games and poker to Australian players.

In 2017, the Act was amended to close loopholes, leading to stricter enforcement against offshore operators. These amendments included a ban on in-play betting and required all gambling operators to hold an Australian license to legally offer services.

Market regulator, the Australian Communications and Media Authority (ACMA) was granted more power to enforce these regulations, including blocking illegal websites and imposing penalties on non-compliant operators.

The amendments came into effect September 2017 and saw the withdrawal of a number of operators from the Australian market, including 32Red, BetVictor, LeoVegas and Party Casino. Others, like bet365, Ladbrokes and Unibet stopped offering casino products to Australians, but obtained licences to offer online sports betting services.

Another amendment to the Act coming into effect June 2024, saw a ban on the use of credit cards (& crypto-currencies) for online gambling transactions. Also being considered during 2024 were reforms to further restrict online gambling advertising in response to a rise in the number of Australians gambling at levels considered to be risky.

Current Regulations

The Act, as amended, is the governing law for Australia’s online gambling market. The ACMA is responsible for oversight and enforcement of the laws with key aspects set out below.

  • Licensing: While ACMA provides oversight at a national level, state or territory governments are responsible for issuing online sports betting licenses. Most Australian online sports betting operators are licensed in the Northern Territory, where the government offers a regulatory framework seen as relatively favourable, including lower tax rates. The Act mandates that operators must have a physical presence in Australia to obtain a license, ensuring they are subject to Australian law.
  • Permitted gambling categories: Online sports betting, wagering (horse racing) and lottery only. The Act prohibits online casino games, poker, and in-play sports betting.
  • Advertising restrictions: There are limits on the timing and placement of gambling ads, especially during live sports broadcasts and a requirement for responsible gambling messages in all advertisements. Proposals have been put forward for a phased blanket ban on all online gambling advertising.
  • Enforcement: ACMA does have a mandate to work with ISPs to block access to unauthorised gambling sites. In practice limited blocking activity is undertaken. A blackjack list of unauthorised sites isn’t maintained.

Major Operators

A mix of home-grown and global brands (via Australian incorporated subsidiaries) operate in Australia’s regulated online gambling market including Sportsbet, Tabcorp, Ladbrokes, Bet365, Neds, Unibet, PointsBet and Betfair.

They all offer sports betting and wagering services only.

Best live casinos for Australian players

While locally licensed operators are not permitted to offer casino games to Australian residents, offshore operators who are outside of the jurisdictional reach of Australia’s laws are happy to do so.

Further, there is nothing in Act making it illegal for Australians to gamble at any of these casinos. But, they must do so at their own risk with no avenues for dispute resolution.