Gambling Laws In Australia: What's Illegal?

what is illegal gambling in australia

Gambling is a significant part of Australia's culture and identity, with Australians placing bets totalling $244.3 billion in 2022-23, making them the world's leading gamblers. However, the country also has a high prevalence of problem gambling, with up to 160,000 adults experiencing significant issues and thousands more at moderate risk. While gambling is legal in Australia, certain forms of gambling are prohibited, particularly online gambling offered by overseas-based operators without a local licence. This has led to concerns about the impact of gambling on public health and the economy, with the Australian government considering various measures to address these issues, including bans on gambling advertising and proposals to tax gambling revenue.

Characteristics Values
Gambling definition Staking money or something of real-world value on the outcome of an event that is determined in full or in part by chance, such as a sporting event or a horse race, with the intent of winning a prize or something else of value
Legal status of online gambling Banned for overseas-based operators without a relevant state or territory licence
Online gambling services provided by local operators Legal with a relevant licence
Online gambling services provided by overseas-based operators Illegal
Advertising for gambling Legal
Advertising for online wagering Illegal
Advertising restrictions No advertising during sporting events, on social media and online platforms, in stadiums, and on players' uniforms
Charitable gaming Allowed under the Unlawful Gambling Act 2009 with approval and a fee
Private gaming Allowed only in a person's home and not for commercial purposes
Exempted games Chess, board games, wargames, arcade and amusement games, chocolate wheel (with goods or services as prizes)
Prohibited games Poker

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Online gambling

The IGA also outlines that it is unlawful for overseas-based operators without a relevant state or territory licence to advertise or provide online gambling services to Australian residents. This is enforced by the Australian Communications and Media Authority (ACMA), which can block illegal offshore gambling websites, impose civil penalties, and notify border protection agencies.

While online gambling is largely prohibited in Australia, there are some exceptions. Online sports betting, including horse racing and greyhound racing, is allowed if the betting organisation holds a license from the relevant state or territory betting authority. Online lotteries are also permitted if they are approved by the appropriate state or territory lottery authority.

The legality of online gambling in Australia is a contentious issue. Some argue that the government's stance is not motivated by a concern for citizens' savings but rather by the loss of tax revenue to offshore gambling sites. The difficulty of obtaining a license as an online operator is also cited as a reason for the discrepancy between the treatment of online and offline gambling.

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Advertising restrictions

Advertising for gambling is legal in Australia, but there are some restrictions in place, and further bans have been proposed. The Interactive Gambling Act 2001 makes it illegal for gambling providers to advertise banned services, such as certain online services, to people in Australia. The Act also prohibits the promotion or offering of credit for online betting. The regulator responsible for enforcing the Interactive Gambling Act is the ACMA, which has consumer protection powers relating to the enforcement of prohibitions on advertising illegal interactive gambling services.

The ACMA has been active in engaging with overseas regulators concerning the illegal offering of online gambling products in Australia, and has the power to notify border protection agencies of the names of directors of offending illegal offshore operators. The ACMA has also taken enforcement investigations in relation to global bookmakers.

In 2023, a parliamentary committee recommended a ban on gambling advertising during sporting events, and the Albanese government discussed a ban during sporting events in 2024. The Australia Institute proposed a levy on gambling revenue to cover losses, and polling by the Institute found that 76% of Australians favour a complete ban on gambling advertisements, with 81% supporting a ban on social media and online platforms, and 79% supporting a ban in stadiums and on players' uniforms.

As of October 2024, the Albanese government is planning to implement a total ban on digital gambling ads and a prohibition on TV ads for one hour before and after sports broadcasts.

Online gambling is generally illegal in Australia, unless the operator holds a relevant licence. This is due to the fact that many online gambling companies are based in tax havens, so the government cannot tax them.

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Charitable gaming

In Australia, charitable gaming is allowed under the Unlawful Gambling Act 2009, which permits charitable organisations to hold fundraising gaming nights under an approval system. This act makes all gambling unlawful unless expressly permitted by a Territory law. The ACT Gambling and Racing Commission has declared certain common non-gambling games as lawful, providing clarity on what is permitted.

To conduct charitable gaming, organisations must submit an "Application for Approval to Conduct a Game", which attracts a fee. Bingo is a popular example of charitable gaming, often conducted by community or other not-for-profit organisations for fundraising purposes. A state or territory licence is typically required to operate a bingo centre.

Two-up on Anzac Day is another example of approved charitable gaming. If played for charitable purposes, all funds raised must be donated in full to the nominated charity. Records must be kept to show how much was raised, who received the funds, and when.

It is important to note that charitable gaming does not include online casino-type games, which are prohibited under the Interactive Gambling Act. This Act is enforced by ACMA, which has the power to instigate civil proceedings and disrupt the operations of illegal offshore gambling providers.

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Private gaming

In Australia, private and social gaming, such as playing a game of poker or blackjack at home with friends, is lawful. However, there are restrictions to ensure that commercial gambling is not disguised as "private" gaming. For instance, bets are allowed on these private games, but private games cannot be conducted for a commercial purpose. It is unlawful to charge a fee for participation, except when the fee is for a charitable purpose. To be lawful, private games must be conducted in a person's home and not in public places such as hotels, clubs, community halls, cafes, or restaurants.

The Unlawful Gambling Act 2009 provides for restricted charitable gaming, allowing charitable organisations to hold fundraising gaming nights under an approval system. These organisations must submit an "Application for Approval to Conduct a Game" and pay a fee. Two-up on Anzac Day is allowed for charitable purposes, but all funds raised must go to the nominated charitable organisation.

In the ACT, the Unlawful Gambling Act 2009 makes all gambling unlawful unless expressly permitted by the Act or another territory law. The Act expressly provides for private gaming, two-up on Anzac Day, approved charitable gaming, and the declaration of exempt or unlawful games.

Certain games have been declared unlawful in the ACT, including poker. These games can only be played in a person's home or at a casino, which is subject to strict regulatory controls. Games like chess, board games, and wargames are generally lawful, but they become unlawful if something other than an entry fee or prize is risked or staked.

While Australia has stringent legislation, minors are still exposed to gambling at an early age. In 2020, a 12-year-old girl was able to place over 20 bets at The Star Sydney casino. To address this issue, some Australian states have created gambling-related programs to prevent the illegal involvement and addiction of minors.

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Regulatory enforcement

Australian Communications and Media Authority (ACMA)

ACMA is the federal regulator responsible for enforcing the Interactive Gambling Act 2001 (IGA) and monitoring compliance with interactive gambling laws. ACMA ensures that online gambling operators do not offer 'real-money' online interactive gambling or advertise such services to Australian citizens. It also enforces rules prohibiting gambling advertisements during the broadcast of live sports on TV and radio. ACMA has the power to instigate civil proceedings, notify border protection agencies about illegal offshore operators, and disrupt their operations by blocking websites and liaising with foreign regulators.

Australian Consumer and Competition Commission (ACCC)

The ACCC enforces Australian consumer protection laws, including ensuring that gambling service providers comply with their obligations under the Competition and Consumer Act 2010 (CCA). It monitors gambling advertising to prevent consumers from being treated unfairly or unconscionably and takes enforcement action when necessary.

State and Territory Gambling Regulators

Each state and territory has its own independent gambling authority responsible for licensing, monitoring compliance, and enforcing legislation. Examples include the Victorian Gambling and Casino Control Commission, Liquor and Gaming New South Wales, and the Independent Liquor and Gaming Authority. These regulators have taken enforcement action against licensees for breaches of licence conditions and advertising restrictions, resulting in significant fines.

Australian Association of National Advertisers (AANA)

AANA has a self-regulatory code for wagering advertising, covering licensed wagering operators. While ACMA approves these codes, complaints about breaches are determined by the Ad Standards Community Panel.

Frequently asked questions

Gambling is defined as staking money or something of real-world value on the outcome of an event that is determined in full or in part by chance, such as a sporting event or a horse race, with the intent of winning a prize or something else of value.

Online casino-type products are illegal in Australia. Foreign casinos that don't pay their taxes are also illegal. It is also illegal for overseas-based operators without a relevant state or territory license to advertise or provide online gambling services to Australian residents.

Private games are only lawful if they are conducted in a person's home and not for a commercial purpose. For example, it is illegal to charge a fee to participate in a private game unless it is to raise funds for a charitable purpose.

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