Australia is the nation with the highest per capita gambling losses in the world. Australians gamble on diverse gambling types through different channels, both land-based and online. Statistics from 2022-23 show that net losses on gambling in Australia were AU$31.5bn (US$22.3bn).

Australians gamble online and do not always distinguish between using the online gambling services of legal operators such as Australian-licensed wagering or lottery operators and using the online gambling services of illegal online operators. This is a worldwide phenomenon but, in Australia, this includes online casino services (including poker) and online wagering or lottery operators not licensed domestically. Responsible Wagering Australia (RWA), the representative body of Australian-licensed wagering service providers, published a report in November 2025 outlining that offshore gambling constitutes 36% of the Australian online gambling market.

These statistics confirm that illegal online gambling services are easily accessible to Australians and constitute a material segment of the online gambling services used by Australians. Addressing this issue is important in any jurisdiction; however, taking into consideration the gambling pattern of Australians and the manner in which illegal online gambling in Australia is taking place (and is likely to grow), this should be the subject of further debate. 

Online regulation and enforcement in Australia

Online gambling is prohibited under Australian Federal gambling law unless it is licensed by a gambling regulator in Australia. Australian gambling regulators can only license online wagering and online lotteries. The offering of online casino games (including poker) is prohibited and cannot be licensed by an Australian regulator. Further, it is prohibited to offer in-play wagering services on sports events. Therefore, a customer cannot place a bet after the commencement of a sports event with an Australian-licensed wagering operator unless it is placed over the telephone or on terminals in gaming venues.

The Australian Communications and Media Authority (ACMA) is the Australian Federal regulator that regulates online gambling and it is responsible for enforcing the relevant online gambling legislation. A primary function of ACMA is to ensure compliance with Australian Federal gambling law, and to protect Australians from the harm associated with illegal online gambling operators.

ACMA has been active in its enforcement function over the last few years, particularly since it introduced internet service provider (ISP) blocking of illegal websites in November 2019. ACMA reported on 13 February 2026 that it has blocked 1,518 illegal gambling and affiliate websites through ISP blocking.

Typically, illegal online gambling operators are operators that are offshore, with no presence in Australia, most are licensed in jurisdictions that are not considered top-tier for their regulation of online gambling. The gambling regulators in these jurisdictions are not recognised in the top-tier jurisdictions for their compliance requirements and enforcement actions for breaches by their online gambling licensees. This licensing structure allows those operators to conduct their online gambling businesses (and provide services) in a manner which may not be permitted if the operator were licensed in a jurisdiction with more stringent compliance and enforcement measures.

How to address this issue

When considering the information and statistics provided in relation to the size of the illegal online gambling market accessed by Australians, this raises an important question. Are the measures adopted by ACMA achieving their ultimate purpose, namely to cause illegal online gambling to cease to be accessed by Australians? Or should other approaches to curtail illegal gambling be considered?

The RWA study anticipates that the size of the illegal online gambling market will continue to grow, estimating that it will reach AU$5bn gross gaming revenue by 2029. As such, the organisation has set out in its publication recommendations that it considers would be effective in combatting illegal online gambling in Australia. The recommendations that RWA outlines relate to third parties (such as payment service providers, banks, sports and racing bodies and BetStop) collaborating to collectively contribute to combatting illegal online gambling in Australia. This would primarily be achieved by third parties identifying payments to illegal online gambling 
operators and blocking the payments.

RWA also recommends making more educational material available to consumers, to create better awareness in understanding the risks associated with using the services of illegal online gambling operators and how to identify illegal online gambling operators. If adopted, RWA’s recommendations would assist in ensuring Australians reduce their access to illegal gambling operators; however, significant discussions with the relevant third parties will be required before any relevant measures can be implemented. Third parties (particularly banks and payment service providers) will be required to implement technological updates to their systems to monitor and identify transactions relating to online gambling.  

The question remains whether the current enforcement measures and the adoption of the recommendations proposed by RWA would be sufficient to materially reduce the illegal online gambling market in Australia. Nevertheless, learnings from other jurisdictions strongly indicate that regulating online gambling is effective. 
When a jurisdiction regulates and licenses online gambling operators, various benefits that contribute materially to limiting the illegal online gambling market begin to appear. The benefits of regulating and licensing online gambling operators involves the creation of an online gambling legal framework with requirements that are tailored to the policy of the local regulator.

Licensed operators are required to comply with the requirements, and the local regulator has oversight over the operations of the licensed operators – resulting in effective compliance requirements and, when necessary, effective enforcement action. Consumers using the online gambling services of licensed legal operators have further protection due to using services that are regulated by a known regulator and having access to the regulator if the licensed operator fails to comply with its obligations. Consumers will choose to use the services of licensed online gambling operators over the services of illegal gambling operators.

Elsewhere, the New Zealand (NZ) Government is taking steps to regulate and license online casino gambling services in the nation. The relevant Act and regulations are anticipated to be in effect by mid-2026, and the licensing process will commence soon thereafter. It is anticipated that from 1 December 2026, only operators that will have applied for an online casino licence with the NZ regulator (after successfully completing the auction requirements and process) will be permitted to provide online casino services legally to customers located in NZ.

NZ is not the only jurisdiction taking this approach; many US States, as well as Alberta in Canada, have moved away from prohibition of online gambling services by putting in place a licensing regime under which licences are granted to operators to provide gambling services. Also, Ireland and Finland will license operators this year after implementing laws to regulate online gambling. The outcome and learnings from the NZ model will be useful for Australia. Looking forwards, however, there is scope for a meaningful discussion to commence in Australia to consider the most appropriate manner to address the growing Australian problem of illegal online gambling. 

Closing thoughts

The facts are that Australians enjoy gambling, online gambling is easily accessible (both legal and illegal gambling services), Australians are using the services of illegal online gambling operators, the current enforcement measures do not seem to be achieving their intended outcome, and it is estimated that illegal online gambling services will continue to grow.

These facts clearly show that more needs to be done to combat illegal online gambling services. Options exist – Australian policymakers and regulators, together with the relevant stakeholders, need to initiate discussions to update policies to reflect the reality of Australians in relation to online gambling. They need to implement appropriate and effective measures to address the issue of online gambling services.