Gambling Industry Overview in Australia
The following approaches will be presented
- Gambling legislation in Australia
- Gambling authorities in Australia
- Online casinos in Australia
- and more
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Gambling is among the most popular forms of entertainment in Australia, with 6.8 million people within the country being regular gamblers, spending money on one or more gambling activities in a typical month, according to a 2015 analysis by the Australian Gambling Research Centre (AGRC).
While this is the highest rate in the world and would call for strict regulation in most parts of the globe, the regulation of gambling in the country is subordinated to fairly liberal laws. Several licensed physical casinos are currently operating in Australia, which has legalized poker, too. The pubs, clubs, and bars in the region also offer a great variety of electronic gaming machines (EGMs). These slot machines are called “pokies” and are among the most popular forms of gambling along with lottery games.
Sports betting is also regulated in the country, with betting shops known as TAB (Totalisator Agency Board) where tote wagers and fixed odds bets can be placed. A total of about 3,000 retail Totalisator Agency Board outlets can be found in various locations. Operating since 1961, the government-owned TAB shops have been privatized, and in 2015, nearly half of them (those located in Queensland, South Australia, Northern Territory, and Tasmania) were modernized and re-branded as UBET shops.
Similarly to nearly everywhere around the world, Bingo is also very popular. There are also little over a dozen land-based casinos regulated under the Casino Control Act of 2006. Land-based gambling is regulated at the state and territory levels. There are casinos in Sydney, Brisbane, Melbourne, Perth, Adelaide, and the capital.
These are not the only opportunities for people who are interested in gambling. Australia has also legalized online gambling, even though the government there has imposed a number of restrictions with the passing of the Interactive Gambling Act (IGA) of 2001. The restrictions, however, are related to online gambling operators rather than to players. Engaging in online gambling activities is not an offense and players are not even taxed on their winnings, as gambling is considered a recreational activity and a hobby instead of a profession.
Popular Online Casinos
As we have already seen, gambling fans in Australia are free to choose an online casino to play at. Although local gambling sites should and do not accept them, there are many off-shore casinos that allow residents of the country to register and play for real money.
Claiming to be the first Bitcoin casino on the Internet, BitStarz was established in 2014 by the Curacao-licensed gambling operator Direx N.V. Having a great reputation in the industry, the online casino is an ideal gaming destination for Australia-based players who wish to use Bitcoin for their gambling activities. View More
Joe Fortune is one of the newest online casinos on this list and unlike the rest of the websites, it offers its gambling services exclusively to Australian-based players. It is part of the large Best Partners network members of which are popular brands such as Bodog, Bovada, Ignition Casino, and Slots.lv.View More
Another online casino targeting Australian players is Fair Go Casino which launched in 2017 with the sole purpose of offering Aussies a “fair go” with the fun and exciting gaming experience it has prepared for them. This is an instant-play casino with a user-friendly platform by RealTime Gaming (RTG), which despite being new to the local market, is a well-established software provider elsewhere in the world.View More
Ignition Casino is a relatively new Bitcoin casino that recently opened to the Australian market, offering customers a varied selection of RTG slots, table and card games, video poker, and specialty games. Interestingly, the online casino is equipped with a fantastic Poker Room that can be accessed by all players after downloading the casino software.View More
Operating since 2006, the Curacao-licensed Superior Casino is a trusted brand for thousands of gambling fans from all over the world. Its partnership with Rival has made it relatively popular and rather one-of-a-kind gambling entertainment destination with high-quality content provided exclusively by the studio.View More
Established in 2000, Casino Extreme is a beautifully designed online casino powered by RealTime Gaming. The games it hosts are available in its modern instant-play platform and via its downloadable software. The website welcomes players from almost any part of the world, including Australia and the United States, while the currencies it operates in are USD, EUR, and BTC.View More
Grande Vegas is an exciting, Vegas-themed online casino that offers access to its games via three different platforms, download, instant-play, and mobile. Powered exclusively by RealTime Gaming, the casino hosts most of the studio’s classic and video slots, table and card games, scratch cards and video poker titles.View More
With its modern, distinctive look and ebony background, Slotastic is a visually appealing online casino with an interesting name and a focus on mobile. Indeed, the casino has a fantastic range of classic and video slots but it actually offers its customers a full collection of casino games such as jackpot games, blackjack, roulette, poker, baccarat, video poker and many more.View More
Overview
Traditionally, the States of Australia have been responsible for gaming policy, although the Commonwealth has also taken part in the regulation of gambling. Basically, this means that the regulation and gambling services in the country are being carried out by State and Territory governments. Interestingly, according to a large 2017 study carried out at the request of the Tasmanian Department of Treasury and Finance, gambling revenue accounted for 7.7% of the total state and territory taxation revenue.
Each State has general gambling legislation in place as well as its own requirements for licensing. As a result, gamblers (especially those in land-based casinos, betting shops, and other gaming outlets) are protected by a full set of laws and rules which implementation is closely monitored by a large number of regulatory bodies, commissions, state offices, etc. Still, the country’s legislation has been recently updated in a way to provide the Commonwealth with the opportunity to take a more active role in the gambling industry’s regulation.
In addition, as society expressed some concerns related to the impact of gambling on public health, an inquiry by the Productivity Commission was initiated by the Commonwealth. It says that between 80,000 and 160,000 adults in Australia, which is 0.5%-1.00% of the total population, are experiencing serious problems caused by their gambling habits.
The rise of online gambling has had a great impact on regulatory mechanisms, overall community well-being, and revenue collection. Instead of trying to outlaw online gambling, an idea which has been proved to be ineffective across the world, the country took measures to control and manage it. This way, it could provide Australian players with protection from the detrimental effects of online gambling while at the same time, it could guarantee a solid source of income from license fees and taxes. In 2001, the Federal Parliament passed legislation that bans online gambling websites from providing their services to the country’s citizens, namely the Interactive Gambling Act.
In recent years, the attitude towards this business has changed slightly and the gambling industry in Australia is now believed by some to provide great social benefits to the local community when it comes to entertainment. It is also regarded as a significant source of economic benefits. The industry is responsible for boosting employment rates in many regions as well as for bringing considerable taxation revenue.
As of 2005, more than 120,000 people were employed in hotels and clubs with gambling facilities, and it is estimated that these numbers have increased by at least 30% and even 40% in the past few years. In 2009, over 20,000 people worked in land-based casinos. In addition, several social and sporting infrastructure and community organizations are currently being funded by gambling operations in the country.
In 2007-2008, Australia’s states reported revenue of nearly $3 billion generated from poker machines and $4.9 billion generated from all forms of gambling that represent a bit over 9% of their total revenue. According to the Productivity Commission’s report, which was released in 2010, approximately 5,700 pubs and clubs in Australia provided different gaming services in 2008-2009. The total gambling revenue for the same period was around $19 billion. Meanwhile, the state tax revenue from gambling was $5 billion, or around 10% of the total state tax revenue on average.
The exact percentages are different for the different states, as tax bases vary significantly, depending on the state and the specific gambling services. Some gambling operators are taxed based on their net profit, while others on the turnover. In some cases, there are also taxes on the player loss.
Gambling Regulation in Australia
Currently, gambling regulation in Australia is processed at two levels. As mentioned before, the first level is the central government, which plays an important part; the Commonwealth functions as a regulator of gambling activities (one with limited jurisdiction) and as the legislature that passes and amends the laws that govern the industry.
On the other hand, regulation of gambling is primarily carried out at state and territory level and is under the jurisdiction of several regional authorities. Moreover, legislation relating to the industry depends largely on regionally passed acts and rulings.
Specially appointed ministers at each regional government are responsible for the legislation and policy, while government authorities act as independent regulators in charge of supervision and enforcement of laws. Here is a list of the organizations and institutions that are currently involved in the gambling regulation on the territory of Australia:
- Office of Liquor, Gaming and Racing – it covers the territory of New South Wales
- Licensing Commission – it covers the Northern Territory of Australia
- ACT Gambling and Racing Commission – it covers the Capital Territory of Australia
- Department of Racing, Gaming, and Liquor – it operates in Western Australia
- Independent Gambling Authority – it covers South Australia
- Office of Liquor and Gaming Regulation – it operates in the region of Queensland
- Tasmanian Gaming Commission – it covers Tasmania
- Victorian Commission for Gambling and Liquor Regulation – it covers the territory of Victoria
In addition, these independent regulators and government departments (such are the DRGL in WA and the Licensing Commission in the Northern Territory), there are several agencies under the Federal Government that are responsible for the regulation of any kind of gambling operations in the country. Among them are The Australian Communications and Media Authority (interactive gambling), The Australian Transaction Reports and Analysis Centre (anti-money laundering), and The Australian Federal Police (interactive gambling and financial crime).
It is important to note that depending on the type of license they hold, gambling operators in Australia can offer only specific products and services to their customers. Land-based casinos can offer only casino games and EGMs (pokies) to clients who are physically in the casino, while licensed clubs and hotels can provide pokies and Keno games on their premises. Bookmakers and wagering operators offer fixed-odds products both in venues and remotely (including online), but there are also similar businesses which provide tote betting (totalizator betting). Lottery games are offered by commercial lottery operators and tickets can be purchased in venues and online.
Although Australian web-based casinos are prohibited from offering their services to citizens of the country, they are allowed to accept foreign players. At the same time, off-shore online casinos currently attract and accept hundreds of players from Australia despite the fact they are officially banned from doing so. The reasons for this odd situation is explained in the sections below.
The Interactive Gambling Act of 2001
The Commonwealth Parliament of Australia passed the Interactive Gambling Act in June 2001 as part of efforts to protect society from the potentially negative impacts of online gambling. Less than a month later, on 11 July, it received assent. The Interactive Gambling Act focuses on online gambling operators. It prohibits them from offering interactive gambling for real money to Australian residents as well as to customers in the so-called “designated countries”. Technically, the ban applies to both Australian-based and international gambling operators. In addition, the Act prohibits the advertising of such services in the territory of the country.
There are, however, several notable exceptions to the law, allowing specific online gambling operations to be held and offered to residents of the country. The first is sports betting; it is entirely legal as long as bets are placed prior to the start of the sporting event. Similarly, online lotteries are allowed as long as they are not instant-win scratch cards, which are otherwise quite popular in other countries.
The reason behind these exceptions is the fact that the Act of 2001 prohibits only gambling services that are determined as “interactive”, such as in-play betting. It should be noted that despite the partial ban imposed by the Interactive Gambling Act, the document does not prohibit Australian-based operators from offering their services to foreign customers.
While operators (local or off-shore) cannot offer or even advertise real-money interactive gambling services to Australian-based players, it is not illegal for customers to use these services. This means that Australians can easily play any kind of casino game or place bets at websites that are based and licensed outside the country. The government finds it difficult to enforce the Act in relation to off-shore operators for different reasons. For instance, if the online gambling operators do not know they are offering their services to Australian residents, their act is not deemed as “offense”.
Due to these unexpected consequences, a 2012 government review of the Act found that this seemingly strict piece of legislation was, in fact, ineffective and could potentially lead to even more harmful effects. Australian players gambled at sites that were unlicensed, unregulated, and their protection could not be guaranteed. As a result, the Interactive 2016 Gambling Amendment Bill was passed in 2017. It prohibits gambling operators from offering their services to Australian citizens even if they are fully licensed from international regulatory bodies. The Bill clarifies the law and strengthens the power of enforcement of the Australian Communications and Media Authority (ACMA).
One of the biggest consequences of its passing is the complete ban on online poker. Still, customers cannot be penalized for accessing gambling websites and using their services. This ultimately means that gambling fans can still place bets online, doing anything to surpass these restrictions.
Whether gambling operators can accept Australian players or not is, indeed, a grey area. Many online casinos licensed elsewhere in the world welcome customers from all over the world, including Australia. The local authorities do not seem to be serious about fining gambling operators, and no measures have been taken in this regard. As a result, a large number of casino and bingo websites continue to attract players from the country.
The ACT Gambling and Racing Commission
The ACT Gambling and Racing Commission is an independent body, which was created under Section 5’s rules of the country’s Gambling and Racing Control Act of 1999. The latter was issued to provide continuous control, monitoring, and administration of certain Acts related to racing and gambling. It also establishes the rights, functions, and obligations of the Commission.
The ACT Gambling and Racing Commission has several functions. First and foremost, it monitors and regulates the casino, gaming machines, racing, betting, lotteries, and online gambling activities in the Australian territory. As part of its actions, the Commission provides such activities with approval and monitors the social effects they have on the public.
In addition, the Commission needs to regularly review the policies and the legislation related to racing and gaming, as well as recommend certain actions to the Minister on those matters, if needed. The Commission is also entitled to investigate and conduct inquiries when it comes to issues and activities in relation to gaming and racing-related matters. The Commission also needs to collect fees, taxes, and charges that have been imposed or authorized by the country’s gaming legislation.
The Independent Gambling Authority
The Independent Gambling Authority is the senior regulatory authority that is responsible for the control, monitoring, and regulation of commercial forms of gambling in South Australia. The functions of the Authority are required to be performed independently of Ministerial direction. However, it is accountable for its actions to the country’s Parliament through the Minister for Gambling.
The gaming activities that are currently being regulated by the IGA include gambling in physical casinos, gaming machines situated in clubs and hotels, races and sports betting, as well as commercial lotteries. All actions of the Authority are thoroughly stated in the country’s legislation.
The Independent Gambling Authority is established as a lawful corporation. Its functions and obligations are determined by the Independent Gambling Authority Act of 1995. The South Australian State Government appoints the members of the organization. The Authority basically has a regulatory and supervisory role in order to ensure an efficient system of regulation over the operations of the licensed gambling industry in the region of South Australia.
Responsible Wagering Australia
Responsible Wagering Australia replaced the former Australian Wagering Council, a trade association and a lobby group that disbanded after the departure of several of its members, most notably Ladbrokes and William Hill. The departure of leading international operators followed the passing of the Interactive Gambling Amendment Bill 2016 and the total ban on in-play betting.
The new peak organization, which is the Australian term for an advocacy group, is an independent body that represents the Australian online gambling industry. As of June 2020, its members include bet365, BetEasy, Sportsbet, Betfair, Unibet, and GVC – Ladbrokes and Neds.
Membership in Responsible Wagering Australia requires operators not only to hold licenses for offering online sports betting services from the Australian authorities but it also requires them to respect and be bound by the association’s Code of Conduct. Gambling sites displaying the RWA logo guarantee that they comply with the highest standards of integrity.
Popular Games
As explained above, many online casinos based and licensed in off-shore jurisdictions have become popular gambling destinations for thousands of Australian players. Many of these websites are legalized and regulated in European iGaming jurisdictions such as Malta, Gibraltar, or the UK, and offer their customers a wide variety of casino games by different software providers. All types of games are available to Aussies, such as online slots, blackjack, baccarat, roulette, and other table games, video poker, and more. Different variations of poker can also be played.
In order to find a good online casino to play for real money, Australian players should take a look at the gaming offering at each website, and the software providers, in particular. Leading gaming studios such as NetEnt, Playtech and Microgaming have in their portfolios games that are not only of exceptional quality but that have also been proven to be fair. Microgaming, for instance, is the oldest, and currently one of the largest developers of online casino software and games. But even more importantly, it boasts the richest collection of slots and table games.
Interestingly, many web-based casinos have chosen to offer a purely Microgaming catalog of games, and some of them are available to Australian players. The studio’s pokies are particularly popular due to their beautiful graphics, adjustable features, and relatively high average returns. The progressive jackpot games from the provider, however, are the icing on the cake, with hit titles like Mega Moolah.
A large number of international online casinos that accept users from Australia are powered by RealTime Gaming, one of the popular gaming studios today. The company, commonly known as RTG, was founded in 1998 and initially created download-based casino software while later, it started to provide browser-based games and content. In 2007, the studio was acquired by the Curacao-based Hastings International. Today, RTG has one of the largest and most diverse collections of online slots in addition to its range of video poker variations and different table games.
We cannot forget to mention Playtech, yet another large gaming software developer with an impeccable reputation around the world. It offers hundreds of high-quality, innovative casino games, most of which are pokies, others coming with attractive progressive jackpots. There are several renowned web-based Playtech casinos that accept players from Australia. At those, you can also enjoy roulette games, video poker, as well as live dealer games in HD quality.
Some of the leading software developing companies, however, now offer content that is unavailable to Aussie gambling enthusiasts. In 2017, the Swedish giant NetEnt (previously known as Net Entertainment) stopped operating in several countries, including Australia. Unfortunately for those residing in the country, none of the NetEnt games that have gained incredible popularity in recent years can be accessed.
Pokies
Slot machines are the most popular way to gamble in Australia and here, they are officially termed gaming machines but are widely known as pokies. While the name derives from “poker machines”, today’s pokies have little in common with poker or more precisely, with the old poker and slot machines where you had to put in a coin and pull the lever to start the game. This type of gambling was first legalized by New South Wales in 1956 and by 2018, there were 196,301 pokies in Australia or 2.65% of all EGMs (electronic gaming machines) installed in the world, according to the World Count of Gaming Machines 2018 (pdf).
Modern pokies in land-based and online casinos have superior graphics, beautiful animations, and 3D effects, special features, and bonus rounds. They have become even more popular among gamblers and this is why most web-based casinos host hundreds of games from this category.
| Game | Paylines | Free Spins | Wild Symbol | Scatter | Progressive |
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Card and Table Games
Traditional casino games such as blackjack, roulette, or baccarat are offered in Australia’s brick-and-mortar casinos and are enjoyed by many regular gambling enthusiasts. These games are regulated mostly at the state level and except for minor exceptions, follow their standard rules. For instance, in both land-based and online casinos, Aussie players will find all basic variations of roulette including European, French, and American.
The most popular casino card game in the country is probably blackjack, it differs slightly from the variation offered in the United States. While in American blackjack, the dealer gets a hole card (a face-down card) and peeks for 21, in Australia, Europe, and Asia, the croupier and the player can see both cards dealt. Australian Pontoon and Spanish 21 are also popular alternatives. And the most common form of baccarat in Australia is Punto Banco, although, at web-based casinos, you can play many other variations, as well.
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Poker
Another exciting game played by thousands of Australian-based gambling fans is poker. Historically, it has been a favorite way to gamble in casinos and outside of venues because it is based on both skill and chance, unlike other casino games where you rely solely on your luck to win. Since the Australian Senate passed the Interactive Gambling Amendment Bill 2016 in the summer of 2017, regulated online poker cannot be offered in Australia.
As mentioned before, players are allowed, however, to use the services of off-shore gambling operators. For this reason, the online form of the game is actually very popular among customers based within the country and can be found in a large number of safe, reliable, and Australian-friendly casinos on the Internet.
Popular Deposit Methods
Due to the lack of legal protection for Australian online casino players (since they cannot play at locally regulated casino websites), a strong focus should be put on the reliability of payments. Whether they prefer pokies, roulette games, or poker, gambling fans will need to make a deposit into their gaming account if they want to play for real money. They will also need to choose a deposit method that is safe and convenient. Moreover, they need to check whether the chosen method is available for withdrawals, whether it supports Australian dollars (AUD), and if it guarantees fast local and international transactions.
Along with credit and debit cards, casino players in Australia can use e-wallets such as Skrill or Neteller, instant banking transfers, and prepaid solutions such as Neosurf.
Credit and Debit Cards
The two major card brands in Australia are MasterCard and Visa. Almost all online casinos accept these cards and deposits through them are instant and reliable, usually with no fees at all. Also, you can make a deposit in AUD as long as the casino you play at supports this currency.
Credit and debit cards by Visa and MasterCard can be used for withdrawal of winnings, as well. Typically, these transfers take between 2 and 5 business days to complete and most respectable web-based casinos have low or no processing fees at all. In some cases, however, cards by MasterCard may be rejected when cashing out, as the company has a policy against accepting gambling-related transactions.
Instant Banking Transfers by POLi
The Australian online payment system POLi is considered among the fastest and safest ways to deposit and withdraw from online casinos. It was established in 2016 and is available only to Aussies and punters from New Zealand who have active online banking and accounts at one of the many regional banks and financial institutions.
This service seems the obvious choice for online gambling fans in Australia, but it offers many advantages we need to take a look at.
First of all, players do not need to open a separate account in order to use POLi. Second, it is implemented by more than 60 web-based casinos, and the deposits through it are instant. In addition, POLi transfers are anonymous, which is ideal for gamblers in Australia. The service allows withdrawals that are charged very low fees. Several other instant banking services may also be available in certain casinos.
Digital Wallets
Digital wallets are probably the world’s most preferred method for depositing into online casinos and withdrawing winnings from them. There are several reasons for their popularity. They allow instant deposits, fast withdrawals (up to 2 business days), and no processing fees. In addition, they are widely accepted not only by gambling operators but also by various other merchants on the Internet.
Two of the largest e-wallets that are available to Australian punters and casino fans are Skrill (Moneybookers) and Neteller. In order to make a deposit or withdrawal via them, customers need to register an account on the official website of the services. After they fund their e-wallets via their credit cards or bank accounts, they can use them at hundreds of web-based casinos.
Another popular e-wallet among Australian players is Neosurf, a globally accepted payment method that is fast and supports more than a hundred currencies. All these services are incredibly secure, easy to use, and convenient for online payments, whether they are gambling-related or not.
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Yes, gambling is legal in Australia, as long as players stick to licensed land-based casinos, bookmakers, and lotteries. Online gambling is not allowed; Australian-based gambling sites cannot accept citizens of the country but there is no legislation penalizing customers who visit off-shore online casinos. The ban applies only to gambling operators and since 2017, it prohibits in-play betting and online poker.
Yes, Australian-based players can register and use the services offered by all off-shore casinos that have not specifically prohibited players from the country. They are free to choose where and what games to play, as the gambling legislation and the restrictions in Australia do not target them but the casino operators, instead. However, you need to check whether the casino accepts registrations and real-money play from your region; in case it does not, it will have the right to void your winnings.
Australian residents have the opportunity to play all kinds of online games. Most web-based casinos have varied gaming collections that often contain more than 200 classic and video slots or pokies, classic table and card games, video poker, lottery games, and poker. A large number of gambling websites also host Live Casino sections where users can join fellow players in exciting game sessions that happen in real time. Progressive jackpot games can also be found at most online casinos.
There is a wide range of payment methods players can use to make deposits at online casinos. Although some banks may reject gambling-related transactions, the deposit options available to casino patrons include third-party processors such as instant bank transfer services, e-wallets, and prepaid vouchers. They allow you to move funds over the Internet quickly and safely while staying anonymous. Of course, credit and debit cards, bank wires and checks are also possible options.
One of the best things about gambling in Australia, compared to most countries around the world, is that there are no tax obligations to players. Sports betting and playing real-money games is not considered a profession, but a hobby. Therefore, any casino winnings are seen as the result of luck and not an income which would be subject to taxation. Of course, there are plenty of fees and taxes, determined by state authorities, but they only apply to gambling operators.
