RWA research: Australians are losing AU$3.9bn a year to illegal offshore gambling

Australia's illegal offshore gambling market has more than doubled in size since 2019, with annual losses projected to rise from AU$3.9bn today to AU$5bn by 2029, according to new research released by Responsible Wagering Australia (RWA).

RWA says half of Australians gambling offshore were registered with BetStop at the time, undermining the national self-exclusion system.

The report, prepared by H2 Gambling Capital, found that unlicensed offshore wagering now accounts for 36% of all online gambling in Australia, fuelled by tax avoidance, aggressive marketing and access to products banned domestically, such as online casinos and live in-play betting.

The growth is expected to cost governments almost AU$2bn in foregone revenue and strip AU$800m from product fees paid to sport and racing over the next five years.

Annual losses for the racing industry alone are forecast to reach AU$135m by 2029, with sport losing an estimated AU$40m a year.

RWA Chief Executive Kai Cantwell said the greatest harm will fall on consumers, who lose access to safer gambling tools, regulated oversight and guaranteed payouts. He warned that offshore operators often operate from "tax and regulatory safe havens" and in some cases have links to organised criminal groups.

Cantwell said Australia's licensed operators are held to strict rules, but illegal offshore websites can out-compete them by avoiding taxes and compliance costs, allowing them to offer more attractive odds and larger bonuses.

He added that 48% of surveyed offshore customers cited better odds as the main reason they bet illegally, while 44% pointed to bonuses. Live in-play betting was identified as the most influential overall factor.

The report also notes that many offshore operators use influencers and affiliate marketers to appear legitimate, with almost half of surveyed gamblers unable to identify whether a site is legal.

RWA said that although the Australian Communications and Media Authority continues to block illegal sites, it lacks the tools required to dismantle organised offshore networks. The report calls for a national enforcement crackdown supported by cooperation from industry, banks, technology platforms and sporting bodies.