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Casino licences can typically only be applied for through a competitive tender process run by the relevant state or territory. The same applies in relation to Retail Wagering Licences and also lotteries and keno licences. Retail Wagering is offered by state and territory-based totalisator agency boards (TABs) pursuant to sole licences in the relevant state or territory, thereby providing them with a form of ‘retail exclusivity’.
The regulated, accredited and certified online casinos for Australians
What seemed to be a fairly stable national and state-level regulatory environment was however upended with the rise of online casinos. Casino licences provide that casinos are only permitted to offer casino games and gaming machines to patrons present within the casino. This means that while it is illegal for companies to provide these services, Australian players are not prosecuted for accessing or participating in online gambling on offshore sites. www.acma.gov.au This creates a gray area where many Australians participate in online gambling on international platforms, which are beyond the reach of the IGA.
The Interactive Gambling Act’s amendments in 2017 and 2019 significantly strengthened Australia’s approach to online gambling. The 2017 reforms targeted illegal offshore gambling activities, enhancing measures against foreign operators illegally catering to Australians. In 2019, the introduction of BetStop, the National Self-Exclusion Register, marked a pivotal step in promoting responsible gambling.
The Legal Alternatives for Australians
In addition, online gambling’s development has had a fair-go login significant impact on the development of certain regulatory mechanisms, as well as community welfare as well as on the procedures related to revenue collection. Laws and regulations have never guaranteed compliance and online casinos are no exception. While many online casinos have measures in place to verify the age of users, it’s not a foolproof process. Further, unregulated online casinos are often lax on monitoring and enforcing age limits.
Various states (including NSW and Vic) have implemented harm minimisation measures to cap the number of gaming machine permits/licences on issue in certain lower socio-economic areas. Each state and territory has a relevant Casino Control Act (or similar legislation) under which casino licences have been issued. A casino licence permits the relevant casino to typically offer traditional table games and gaming machines.
Within these two categories, the government suggests the individual is not gambling ‘interactively’. Offline gambling is a major industry in Australia, and the online betting market is growing to be just as big. Why the government chooses to draw the line at online casino (blackjack, roulette, baccarat, bingo, sic bo, pokies, etcetera), poker and instant-win style scratchies is beyond us.
The ACMA can now issue formal warnings, infringement notices, and even take legal action against operators who breach the law. Additionally, the ACMA has the authority to request internet service providers (ISPs) to block access to illegal offshore gambling websites. The 8Xbet service offered casino-style games like blackjack, roulette, poker and slots played for money, as well as wagering on sporting or racing events including in-play betting on sporting events. They typically hold themselves out to independently review the best gambling services. They also typically provide direct hyperlinks to these gambling services and the owner of the affiliate service usually receives a direct benefit for doing so – in effect, a commission from the gambling service for sending customers to them. While not explicitly illegal for players, using offshore online casinos falls into a grey area.
As the industry continues to evolve, staying informed about legal developments will be crucial for both players and operators. Some services have been found to contravene the advertising prohibition by publishing content that publicises or promotes prohibited and/or unlicensed regulated interactive gambling services in Australia. Providing a prohibited interactive gambling service that has an Australian customer link in contravention of subsection 15(2A) of the Interactive Gambling Act 2001 (IGA) – in the form of an in-play betting service using Fast/Quick Codes. Providing a prohibited interactive gambling service that has an Australian customer link in contravention of subsection 15(2A) of the IGA – in the form of an in-play betting service. The ACMA’s actions, including the ability to request internet service providers to block access to illegal gambling websites, demonstrate Australia’s commitment to enforcing its online gambling laws and protecting consumers.
In recent years, there have been significant amendments to the IGA aimed at tightening the regulations on online gambling. The Interactive Gambling Amendment Bill 2017 introduced several new measures, including a ban on in-play sports betting and the establishment of a National Self-Exclusion Register. The Neon Ball Master app provided access to a game that involved balls randomly dropping into columns, with prizes offered including PayPal cash. The app had a subscription option that met the definition of a gambling service as it was a game played for money, which involved chance, and a customer provided consideration in the form of a subscription to the service to play. These changes collectively bolstered consumer protection, shifting the focus to preventing access to illegal gambling sites and supporting individuals at risk of gambling-related harm.
- The ban may have been designed to protect Australians from the risks of gambling addiction and fraud.
- There is also a federal Goods & Services Tax of 10% payable on net revenue from gambling products; however, state and territory taxation rates sometimes take this into account, and it is offset against taxation payable to state and territory governments.
- Enforcement action by ACMA is also likely to continue following the implementation of various legislative changes, including in relation to illegal gambling sites and following the recent commencement of the NSER.
- The service was provided to customers physically present in Australia, meeting the requirement of having an Australian-customer link (as defined in section 8 of the IGA).
- The Australian Constitution provides the federal government with powers to regulate and govern, among other things, tele-communications, money and trade amongst the states and territories.
There is nothing in the Interactive Gambling Act 2001 (IGA) that prohibits an Australian from accessing, registering, playing, or winning at an online casino. The IGA is aimed at stopping online casino sites from operating within the country, as opposed to regulating what Australian players do. Keep in mind that this is not legal advice, and you should consult the IGA yourself (link here) and also check for any amendments or revisions to the Act. At the time of writing, casino licensees in NSW, WA and Qld have been deemed unsuitable to hold the licences issued in those jurisdictions. The Star’s Sydney, NSW casino licence has been suspended and a manager has been appointed to oversee operations while the suspension is in force and reforms to achieve suitability can be assessed.
Retail Wagering Operators, Corporate Bookmakers and On-course Bookmakers are also required to pay race field fees/product fees to racing controlling bodies and sports controlling bodies, respectively, in relation to bets taken on their product. These fees are generally a percentage of turnover, or the greater of a percentage of turnover and gross margin, and depend upon the relevant product. The authors note that in January 2024, the Special Manager of Crown Melbourne submitted his final report to the Victorian regulator setting out his assessment of the effectiveness and sustainability of Crown Melbourne’s reforms.
