Illegal operators represent more than one-third of Australia’s online gambling: Report | AGB
Summary
A new analysis for Responsible Wagering Australia by H2 Gambling Capital finds illegal offshore operators now account for 36% of Australia’s online gambling, up sharply since 2019. The offshore market reached AU$3.9 billion in 2024 and could hit AU$5 billion by 2029. The report blames domestic product bans (notably online casino and in-play betting), weak enforcement and aggressive offshore marketing for driving players offshore. Channelisation to licensed onshore operators has fallen from 74% to 64% in three years, and significant tax, integrity and consumer-protection risks are highlighted.
Key Points
- Illegal/offshore operators now make up 36% of Australia’s online gambling market (2024 data).
- Offshore market estimated at AU$3.9bn in 2024 and forecast to reach AU$5bn by 2029 if trends continue.
- Onshore channelisation rate fell from 74% (2021) to 64% (2024), increasing revenue leakage to illegal sites.
- Projected loss to governments and sports bodies of nearly AU$2.7bn in taxes and fees over the next five years; annual leakage may reach AU$585m by 2029.
- Product bans (online casino, live in-play betting) are a primary driver: banned products now account for ~26% of online gambling spend via offshore sites.
- Offshore sites lure customers with better odds, unrestricted bonuses and broader product suites; 48% cite odds and 44% cite bonuses as reasons to go offshore.
- Major consumer-harm concerns: poor protections, difficulty resolving disputes, and half of offshore users accessed sites despite being registered with BetStop (self-exclusion).
- Integrity and organised-crime risks: anonymity, cryptocurrency use, no data-sharing for integrity checks and potential for money laundering and match/race-fixing.
- Report recommends measures including a National Illegal Gambling Blacklist Platform, real-time bank payment blocking, expanded eSafety powers, a national certification scheme and stronger international cooperation.
Context and relevance
The report arrives as Australian regulators, racing bodies and sporting organisations face rising financial and integrity threats from offshore gambling. The findings link long-standing policy choices — chiefly bans on online casino and in-play betting — to the growth of illegal markets. For regulators and operators, the study highlights an urgent need to balance restrictions with enforceable controls and better consumer identification to prevent leakage and protect sporting integrity.
Why should I read this?
Seriously — if you work in regulation, racing, sportsbooks, payments or affiliate marketing this is a red flag you can’t ignore. The numbers show leakage is big and growing, and the practical fixes the report suggests (blacklists, bank blocks, tougher online removals) could reshape how the market is policed. We’ve cut the waffle: read this to understand where revenue and integrity are evaporating and what options are on the table.