online gambling in australia journey

The Rollercoaster Journey of Australian Casino Industry!

Australians simply love gambling. Over 80% of the adult Aussie population engages in gambling activities at least once a year. At this rate, Australia is the world’s gambling capital. Pokies or slots are one of the most popular forms of gambling activity here.

Licensed slot machines can be found in virtually every pub and club in the country. Gambling laws are regulations, licenses, and inquiries, and problem gambling is a big part of the domestic betting and gambling industry which is estimated to be over AUD 25 billion.

Online gambling services or their advertisements are illegal in Australia. However, online sports betting and other gambling activities saw a marked increase Online gambling is relatively new on Australia’s gambling horizon but it’s slowly gaining ground both in terms of clarity in regulations and government agencies’ pro-active role in regulating this sector with appropriate laws and enforcements. In this light, the year 2022 has been a promising one as far as online gambling in Australia is concerned.

Online gambling services or their advertisements are illegal in Australia. However, online sports betting and other gambling activities saw a marked increase during the pandemic lockdowns, and the number has not changed even when the lockdowns were lifted. The year 2022 saw quite a few significant events and trends that make it the best online gambling year for Australia. 

Sports betting:

Popular sports betting apps in the Australian markets such as Sportsbet and Ladbrokes are mostly foreign companies. They often use text messages for promotions that do not fall under the purview of gambling advertising restrictions.

Online casino games have also been making inroads into Australia’s AUD25 billion gambling market. Pokies or slot-machines account for a whopping 65% of total gambling spend.

Gambling activities are regulated by various gambling laws that exist in Australia. Physical casinos, slot machines at pubs and clubs, and online sports betting are legal and operate under a license provided by the government.

Gambling and Public Health Concerns:

Gambling is also a hotly-debated public health issue in Australia. According to available data, from 0.5% to 1% of adult Australians experience significant problem-gambling symptoms while 1.4% to 2.1% suffer from moderate problem-gambling issues. 

Law against online gambling:

In view of the large gambling market and public health concerns, Australia also has a wide range of laws that govern gambling activities. As per the existing regulatory provisions, it is an offense for online gambling operators to offer or advertise real money online gambling services to Australian residents.

So, online casinos and online poker services are illegal in Australia. That said, Australian players reportedly lost over AUD 1 billion in online gambling.

Demographics of overrepresented gamblers:

According to a report by the Australian Institute of Family Studies (AIFS), it is said people with certain demographic profiles were overrepresented in the total population who gambled.

The AIFS report identified males, those who had ten or fewer years of schooling, and people aged 50 and over as overrepresented in the population that gamble regularly. Retirees who lived alone were also overrepresented.

Harms are not just limited to financial problems:

A report by the Australian government’s Department of Social Services says the harms of gambling are not just limited to financial problems. Gambling can cause health problems and cultural problems. It can also lead people to criminal activities. Among the health problems, it can cause emotional and psychological distress.

Betting on poker machines is deeply entrenched in Australians’ gambling habits and the country houses over 200,000 slot machines, the largest in the world. With huge numbers of pokies available, people end up using them and sometimes even obsessively, with its negative fallout experienced by the players and their families.

Online gambling is growing rapidly:

Online gambling is growing at a quick pace. During the Covid-19 lockdowns, visiting pubs and clubs became forbidden. People who were used to betting on pokies switched to smartphone apps offering sports betting. It was much easier to bet online as it was possible to engage in such activities anytime and from anywhere. 

During the pandemic lockdowns, Australia witnessed a shift in betting behavior where people moved to online gambling on a large scale. Although money lost on poker machines dropped during the lockdown period, it increased on apps. Online gambling is harder to regulate than conventional gambling. 

Now, Australia ranks third in the world in online gambling loss where the US and Japan occupy the first and the second slots respectively.

Even though it has been over a year since the pandemic-related lockdowns have been lifted, the number of online gamblers or the loss has not fallen. 

Authorities crack down on illegal activities:

In recent years, several inquiries have exposed online gambling operations for their alleged roles in money laundering and violation of responsible gambling laws.

In November, a parliamentary inquiry was launched into online gambling including social casino games or loot boxes, and the harm they cause. Now, Australian lawmakers want to introduce a new set of rules under the National Consumer Protection Framework that makes gambling advertising carry a more explicit warning of its possible harms.

In 2021, Crown Resorts was stripped of its casino license for Sydney and Melbourne. In 2022, its license for Perth was also revoked. It was fined $120 million for failing to comply with responsible gambling obligations and $80 million for the illegal transfer of funds.

Rival gambling entity Star Entertainment also lost its Sydney and Brisbane licenses and was fined $100 million for each of these two jurisdictions for failing to stop money laundering activities. Recently, ASIC launched civil proceedings against 11 Star Entertainment executives and board members for breach of money laundering protocols in the company’s operations.

In conclusion:

Australia is a gambler’s paradise and a majority of the people here use one of the various gambling options available in the country. From international casino brands to ubiquitous slot machines, and sports betting apps, gamblers are spoilt for choices. These services are legal and regulated by government-authorized agencies. 

Online casino games are not legal in Australia but players can access them. The government is coming up with laws to protect people from illegal online gambling sites. In this context, the year 2022 has been extremely significant in placing online gambling in a clear regulatory and enforcement environment in Australia.

About the Author:

Smith-Frankinson-Headshot-2

Smith Frankinson is a casino enthusiast, who has spent 10+ years reviewing and playing various online casinos. He has a special connect with Australian casinos as he spent most of his time in the country. His reviews has helped several players make better decision and spend their hard earned money wisely in their game.