Australia’s Illegal Gambling Market Is Growing Steadily, RWA Says
Rapid Growth of Australia’s Illegal Gambling Market
Responsible Wagering Australia (RWA) has recently released a report highlighting the significant expansion of the country’s offshore gambling sector. Their findings reveal that the illegal gambling market has more than doubled since 2019, with billions of Australian dollars being siphoned off to unauthorized operators every year.
Massive Financial Losses Due to Offshore Gambling
The report, prepared by H2 Gambling Capital and presented by RWA, indicates Australians lose around AUD 3.9 billion (about $2.5 billion) annually to illegal online gambling sites. This amount is more than twice the losses recorded in 2019. Projections estimate that by 2029, expenditures on such illicit gambling could rise to AUD 5 billion ($3.2 billion).
Offshore gambling platforms make up approximately 36% of Australia’s total online gambling market. Besides impacting individual gamblers, these illegal operations cause substantial harm to the Australian economy, with expected revenue losses of about AUD 2 billion ($1.3 billion) and foregone fees nearing AUD 800 million ($518 million) expected over the coming five years. Annual revenue losses could reach AUD 585 million ($379 million) by 2029. Despite efforts by the Australian Communications and Media Authority (ACMA) to clamp down on these illegal sites, their presence remains widespread.
The Real Victims: Australian Gamblers
The primary sufferers of this illegal market are the players themselves. Many unknowingly engage with unlicensed operators, attracted either by a lack of awareness or the enticing bonuses and better odds these offshore sites offer. Because these operators avoid taxes and regulatory fees, they can afford to provide more attractive incentives than legitimate Australian providers.
Moreover, some offshore platforms offer gambling products that are banned in Australia. However, these enticing offers come with significant risks: unregulated sites lack adequate measures to protect players from excessive spending and gambling addiction.
Strengthening Australia’s Legal Gambling Market
Kai Cantwell, CEO of RWA, emphasized the importance of shielding Australian gamblers from offshore operators, many of which are linked to organized crime and use these platforms to launder illegal funds and avoid regulations.
Cantwell stressed that the most effective way to fight illegal gambling is to enhance the competitiveness of Australia’s licensed gambling industry. Making the local market more attractive will reduce the appeal of offshore options.
He also highlighted another danger of offshore gambling sites: they often allow self-excluded and underage gamblers to participate, increasing the risk these platforms pose to vulnerable individuals.
