Australia’s Illegal Gambling Market Is Growing Steadily, RWA Says

Summary

Responsible Wagering Australia (RWA), using analysis from H2 Gambling Capital, reports that Australians now lose around AUD 3.9 billion a year to offshore, unlicensed gambling operators — more than double the 2019 level. The offshore market accounts for about 36% of all online gambling in Australia and is projected to reach AUD 5 billion by 2029. RWA warns that illegal operators offer more attractive odds and bonuses because they avoid taxes and fees, but they also lack consumer protections and can be linked to organised criminal activity. RWA argues the most effective response is ensuring the domestic onshore market remains competitive so players are less tempted to go offshore.

Key Points

RWA/H2 Gambling Capital estimate Australians lose AUD 3.9 billion annually to offshore illegal operators.
The offshore market constitutes roughly 36% of Australia’s online gambling activity.
Spending on illegal gaming could grow to AUD 5 billion by 2029 if trends continue.
Illegal operators cost the Australian economy an estimated AUD 2 billion in lost revenue and nearly AUD 800 million in fees over the next five years.
Players are drawn offshore by better odds, bonuses and banned products, but they sacrifice player protections and responsible gambling safeguards.
RWA CEO Kai Cantwell warns many offshore operators are tied to organised crime and exploit loopholes for money laundering and sanction evasion.
RWA recommends strengthening and making the onshore market more competitive to discourage play with illegal operators.

Author Style

Punchy and direct: the story flags a large, growing leak in Australia’s gambling economy that matters to regulators, operators and players alike. Read the numbers — they show scale and trajectory, so don’t skip the details if you care about policy, compliance or market health.

Why should I read this?

Think of this as a quick heads-up: billions of AUD are quietly flowing offshore each year, and that affects taxes, sport funding and player safety. If you work in regulation, the gambling industry, payments, or harm prevention — or you want to understand where players are being exposed to unregulated sites — this is worth two minutes of your time.

Context and Relevance

This report lands amid ongoing enforcement by the Australian Communications and Media Authority (ACMA) and wider debates on gambling regulation. The surge in offshore play highlights tensions between consumer demand for better products and the need for robust protections and revenue retention. For policymakers, the finding underlines the urgency of balancing tighter controls with market competitiveness to prevent migration offshore. For operators and compliance teams, it signals increased public and regulatory scrutiny on player protection and anti-money-laundering risks.