Gaming Law 2023 Comparisons

Legislative and Regulatory Review

2023 has been a year in which numerous changes have been implemented following the conclusion of inquiries and reviews in relation to the conduct of land-based casino operators, and the implementation of the final measures of the National Consumer Protection Framework (NCPF) (for online wagering operators).

These measures are shaping the updated regulatory framework for gambling in Australia. They relate mainly to a more thorough suitability review of individuals involved in the ownership, management and operations of a gambling business, and to the introduction of further responsible gambling measures. 

The final measures of the NCPF were implemented during 2023. This concluded a process, which commenced in November 2018, to introduce throughout Australia ten responsible gambling measures.

The Australian Transaction Reports and Analysis Centre (AUSTRAC, the Australian federal regulator responsible for ensuring compliance with Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 and the corresponding Rules (the “AML/CTF Laws”) has conducted investigations into the operations of leading Australian casinos and corporate sports bookmakers.

The outcome of the Federal Court of Australia proceedings resulted in the issue of a penalty of AUD450 million against Crown Melbourne and Crown Perth for serious and systemic non-compliance with obligations under the AML/CTF Laws. Further, AUSTRAC has commenced separate civil penalty proceedings in the Federal Court of Australia against The Star and SkyCity in relation to breaches of the AML/CTF Laws.

The casino inquiries have had consequential effects on other gambling sectors in Australia. The New South Wales (NSW) regulator, Liquor & Gaming NSW (LGNSW), is overseeing four trials of cashless methods for play on gaming machines (also referred to as pokies). These trials include the use of systems which eliminate the use of cash in gaming machines in clubs and hotels, and which permit the use of technology for verifying customer details. The trials are being reviewed by an independent researcher, and findings of the trials are expected to be released in late 2023.

Following the conclusion of the inquiry into online gambling and its impact on those experiencing gambling harm, the Federal Parliamentary Committee issued its final report in June 2023. The Report, entitled You win some, you lose more, includes 31 recommendations which are being considered by the Australian government.

As a result of recent changes, online wagering operators are required to complete customer verification in advance of any designated service being provided, including prior to the opening of a wagering account.

AUSTRAC is continuing to review the procedures of online wagering operators more closely to ensure that they comply with their AML/CTF obligations. In September 2022, AUSTRAC commenced an enforcement investigation into Entain Australia, and in November 2022 ordered the appointment of an external auditor separately to Sportsbet and to bet365, to assess their compliance with the applicable AML/CTF Laws. The outcome of these matters is not yet known.

Recent changes are discussed in more detail below.

AUSTRAC Proceedings

Crown proceedings

AUSTRAC commenced civil penalty proceedings in the Federal Court of Australia against Crown Melbourne and Crown Perth (“Crown”) on 1 March 2022 for alleged serious and systematic breaches of the AML/CTF Laws.

On 11 July 2023, the Federal Court approved a settlement reached between AUSTRAC and Crown for the payment of AUD450 million in respect of Crown’s breaches.

Crown confirmed, as part of the settlement, that it has conducted activities in contravention of the AML/CTF Laws. The breaches related to:

• failures by Crown to have appropriate systems and controls in place for managing their AML/CTF risks;
• not having AML/CTF Programs based on appropriate risk assessments;
• not having an appropriate transaction monitoring program for the nature, size and complexity of its business; and
• the board and senior management not having appropriate oversight.

In its decision on 11 July 2023, the Federal Court ordered that:

• Crown pay a penalty of AUD450 million by way of a repayment plan – this involves a payment of AUD125 million within 28 days, AUD125 million to be paid within a year and AUD200 million to be paid within two years;
• Crown pay AUSTRAC’s court proceeding costs in the amount of AUD3.4 million within 28 days;
• AUSTRAC have the ability to seek a variation of the orders if there are any changes in the financial position of Crown (that is, if Crown is in a better financial position which enables them to pay the penalty earlier than stipulated in the repayment plan); and
• Crown provide to AUSTRAC a copy of its financial statements for each of the 2023 and 2024 financial years.

The Star proceedings

On 30 November 2022, AUSTRAC commenced civil penalty proceedings in the Federal Court of Australia against The Star Pty Limited and The Star Entertainment QLD Limited (the “Star Entities”) for alleged breaches of the AML/CTF Laws.

AUSTRAC claims that there have been various contraventions of the AML/CTF Laws by the Star Entities, including failures to:

• conduct ongoing customer due diligence on customers that presented a higher money-laundering risk; 
• include appropriate risk-based systems and controls in their AML/CTF Programs to mitigate and manage the risks to which the Star Entities were exposed;
• establish an appropriate framework for board and senior management oversight;
• have a transaction monitoring program (for monitoring transactions and identifying suspicious activity) that was appropriately risk-based or appropriate to the nature, size and complexity of the Star Entities; and
• have an appropriate enhanced customer due diligence program for carrying out additional checks on higher-risk customers.

AUSTRAC has not yet detailed the quantum of the penalty that is being sought.

Case management hearings took place before the Federal Court in February and July 2023. Unless settled previously, the hearing is due to commence on 4 March 2024.

SkyCity proceedings

On 7 December 2022, AUSTRAC commenced civil penalty proceedings in the Federal Court of Australia against SkyCity Adelaide Pty Limited (“SkyCity Adelaide”) for breaches of the AML/CTF Laws.

In a manner similar to the AUSTRAC proceedings commenced against the Star Entities, AUSTRAC claims that there have been various contraventions of the AML/CTF Laws by SkyCity Adelaide.

Case management hearings have taken place before the Federal Court, with further hearings anticipated in the coming months.

Pending the outcome of the Federal Court proceedings against SkyCity Adelaide, the South Australian government has put on hold an independent review of SkyCity Adelaide, and has appointed an independent monitor to monitor SkyCity Adelaide’s compliance. 

Updates Following the Casino Reviews in Victoria, Western Australia, NSW and Queensland

Victoria

A key recommendation of the Report of the Royal Commission in Victoria (delivered on 15 October 2021), which has been implemented, is the appointment of a special manager (effective from 1 January 2022 for a two-year period) to oversee the operations of Crown Melbourne, and to monitor whether Crown Melbourne addresses the issues and failings identified by the Royal Commission.

The special manager has submitted bi-annual activity reports to the Victorian Gambling and Casino Control Commission (VGCCC) and to the Victorian government. The final report is expected in January 2024.

The special manager’s interim activity reports and the final report will play a key role in informing the VGCCC’s decision as to whether Crown Melbourne has returned to suitability to hold the Melbourne casino operator licence. The decision is expected within three months from the special manager’s final report.

Western Australia

Similar to Victoria, the Western Australian government established the Office of the Independent Monitor to oversee, monitor and report on the two-year remediation plan at Crown Perth. This was one of the key recommendations from the 59 recommendations in the Report of the Royal Commission provided to the Western Australian government on 4 March 2022. The role of the independent monitor commenced on 31 October 2022.

On 16 March 2023, the Western Australian government provided its official response to the Royal Commission’s Report. The government confirmed that, of the 59 recommendations, it supported 49, eight in principle and one in part. It also stated that one recommendation was not applicable since gaming machines are only available in the casino. The government outlined that certain recommendations have been implemented, and has indicated that it will introduce legislative amendments later in 2023 to give effect to the remaining recommendations.

NSW

The term of the special manager’s appointment for supervising The Star’s operations expires on 19 January 2024. The NSW Independent Casino Commission is likely to review its decision to suspend The Star’s NSW casino licence closer to the expiry of the special manager’s appointment.

Queensland

Following submissions made by The Star in response to show-cause notices, the Attorney General, the responsible Minister, and the Office of Liquor and Gaming Regulation determined on 9 December 2022 that The Star:

• pay a pecuniary penalty of AUD100 million;
• have its casino licence suspended on a deferred basis with effect from 1 December 2023; and
• have a special manager appointed to monitor its operations. 

The special manager appointed in NSW was also appointed to act as special manager in Queensland. This appointment is ongoing.

National Consumer Protection Framework

The final measures of the NCPF were implemented in 2023 to complete the implementation of the 10 NCPF measures.

The measures implemented in 2023 are:

• staff training;
• consistent gambling messaging;
• BetStop – the National Self-Exclusion Register; and
• customer identification verification.

Staff training

Existing staff of online wagering operators that are involved in the provision of wagering services or have the capacity to influence the wagering services were required to undergo responsible wagering training by 30 March 2023.

New staff of online wagering operators are required to undergo responsible wagering training within the first month of their employment and prior to interacting with customers.

Staff that undergo responsible wagering training are required to undergo annual refresher training.

Consistent gambling messaging

From 30 March 2023, online wagering operators are required to utilise prescribed responsible gambling taglines in the advertising of their online wagering services and on their websites and apps.

The taglines that the online wagering operators must publish are as follows.

• “Chances are you’re about to lose.”
• “Think. Is this a bet you really want to place?”
• “What’s gambling really costing you?”
• “What are you prepared to lose today? Set a deposit limit.”
• “Imagine what you could be buying instead.”
• “You win some. You lose more.”
• “What are you really gambling with?”

It is no longer sufficient to solely refer to Gamble Responsibly to satisfy the requirement of including a responsible gambling message.

The taglines to be used differ depending on the platform used for the advertising. The taglines must be rotated equally over a 12-month period.

The taglines must also include a call to action which differs depending on the platform used and the duration of the advertisement. The shortest call to action is “Set a deposit limit”, and the full call to action is “For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au”. 

There are various requirements relating to the taglines prescribed and the call to action which online wagering operators must consider when advertising, including:

• the colours to be used for the tagline and call to action;
• the size and font to be used;
• the length of the message to be displayed; and
• the speed at which the tagline and the call to action are read. 

Branding is not usually considered advertising.

BetStop – the National Self-Exclusion Register

The implementation of BetStop was delayed after the operator initially engaged by the Australian Communications and Media Authority (ACMA) entered administration. The ACMA subsequently approved IXUP Limited to operate BetStop.

BetStop was launched on 21 August 2023. It provides Australian residents with the possibility to self-exclude for a period of three months to permanent self-exclusion from all licensed online wagering operators.

Online wagering operators must comply with requirements relating to BetStop set out in the Interactive Gambling Act 2001 (IGA) and the Interactive Gambling (National Self-exclusion Register) Register Rules 2022 (the “NSER Rules”). An online wagering operator is required to:

• register for BetStop;
• not open an account for a person that is registered on BetStop;
• not advertise online wagering services to an individual registered on BetStop;
• close the account of an individual that is registered on BetStop; and
• promote BetStop. 

It has been reported that almost 10,000 persons have registered with BetStop in its first two months of operation, with a lifetime exclusion period being the most common registration.

Customer identity verification

The NCPF measure for completing customer identity verification has recently been further amended to require that verification be completed prior to the opening of a customer account. This requirement came into effect on 29 September 2023 under requirements of the AML/CTF Laws.

Federal Parliamentary Committee Inquiry Report Into Online Gambling

The Federal Parliamentary Committee Inquiry Report, You win some, you lose more, was issued on 28 June 2023 following a lengthy inquiry into online gambling and its impact on those experiencing gambling harm.

The inquiry considered written submissions lodged by various parties and individuals, and involved public hearings where the Committee interviewed individuals representing gambling regulators, wagering operators and other entities involved in the online gambling eco-system.

The Report contains 31 recommendations. The recommendations propose various regulatory measures for addressing gambling harm. The Australian government is reviewing the Report and its recommendations; it is expected that, if the recommendations are implemented, they will impact significantly on the manner in which licensed online wagering operators conduct business in Australia, especially in relation to the promotion and advertising of their services.

Key recommendations include:

• the requirement for verification of all customers to be conducted prior to the commencement of any online gambling;
• a comprehensive ban on all forms of gambling advertising over a period of three years (noting that the advertising prohibition will not extend to dedicated racing channels and programming);
• a prohibition on commissions being paid to any party in the referral of online gambling customers, including affiliates and staff;
• the establishment of a national online gambling regulator responsible for the regulation and licensing of online gambling (including the appointment of an online gambling ombudsman);
• that technological solutions and resources utilised to block offshore illegal gambling websites be identified and implemented;
• the imposition of a duty of care on online wagering service providers; and
• that consultation take place to determine minimum bet limits for online wagering.

A considerable number of the recommendations are expected to be implemented. Legislative reform to implement the recommendations accepted by the government will likely be introduced in the coming months.

Classification of Social Games and Computer Games

The Federal Government had been reviewing proposed changes to Australia’s classification regime as it applies to computer games and social games. The government announced that, from September 2024, mandatory minimum classification requirements will be introduced for computer games and social games containing gambling-like content.

This reflects unanimous agreement reached between Australia’s states and territories on updated Guidelines for the Classification of Computer Games (the “Guidelines”).

The Guidelines will have the effect that computer games:

• featuring paid loot boxes and other forms of in-game purchase linked to chance will be subject to a minimum classification of M (Mature – not recommended for children under 15 years of age); and
• being social casino games and other games containing simulated gambling will be subject to an R18+ classification (for adults only).

The new classification requirements will require game providers to change the manner in which their products are presented, categorised and advertised. 

Northern Territory Racing Commission Consultation

On 14 March 2023, the Northern Territory Racing Commission (NTRC) circulated a draft of the Code of Practice to Reduce Gambling Harm to online wagering operators licensed by the NTRC, for their comments.

Following its review of the feedback, on 17 October 2023, a draft Safer Online Wagering Code of Practice was circulated by the NTRC to online wagering operators licensed by the NTRC for their comments. The draft code sets out minimum standards which would need to be implemented to reduce the risk of a person experiencing harm as a result of online wagering. The obligations set out in the draft code include:

• the requirement to identify customers that may be at risk, and how to interact with these customers;
• implementing and promoting responsible gambling tools;
• a prohibition on inducements and restrictions on advertising;
• a requirement to train staff and certain third parties that may engage with customers or potential customers;
• having fair and transparent terms and conditions;
• requirements relating to the licensed wagering operator’s contractual relationship with third parties (eg, affiliates); and
• identifying minors and restricting their access to the wagering services.

The consultation period in respect of this draft Code of Practice closed on 7 November 2023.

Recent Trends

Social gaming

Social gaming updates can be found in 4.3 Recent or Forthcoming Changes.

Esports

Esports regulation in Australia

Sports bookmakers licensed in the Northern Territory are permitted to take bets on certain esports official tournaments and/or competitions. However, some states do not permit betting on esports.

Action taken in Australia

In 2020, Australian police in Victoria conducted an investigation into esports match-fixing in relation to Counter-Strike: Global Offensive. The investigation resulted in five men being charged with match-fixing offences.

In 2022, two Victorian men were charged with match-fixing following an investigation into suspicious betting activity around an esports tournament. The men pleaded guilty and the penalty included repaying their winnings to the online betting operator, as well as an order that both men be subject to 12-month good behaviour bonds.

Esports continues to be an activity that is growing in popularity in Australia, and developments regarding esports betting should be expected with the growth of the esports sector. This was enhanced by the COVID-19 pandemic, during which esports gained more prominence, as events could continue to be provided, and more operators invested in understanding and providing betting on esports.

Fantasy sports

Where recognised as a gambling service, fantasy sports in Australia are usually provided under a sports bookmaker licence in order to be legal, and, as such, are regulated under the same provisions as apply to online betting services.

Skill gaming

The regulatory approach to skill gaming in Australia varies significantly depending on the state or territory in which the offering is made. It is, therefore, important for an operator to review the applicable legislation and the regulator’s policy in each state and territory when considering whether it is legal or permitted to offer skill games.

The different approaches adopted to skill gaming make it difficult for an operator to offer skill games throughout Australia and an in-depth understanding of the regulatory framework is required prior to making skill games available. In some states or territories, online games of skill are prohibited, which may be a reason why operators are hesitant in making their skill games available in Australia.

Blockchain or cryptocurrency

The use of blockchain technology in gambling is not permitted in Australia. Recently, there has been an increasing number of online operators seeking to offer gambling-style services in Australia involving the use of non-fungible tokens (NFTs).

The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 (introduced in September 2023) will, if passed, ban the use of digital currency (including cryptocurrency) in online wagering (see 3.7 Recent or Forthcoming Legislative Changes).

Online gambling is regulated at the federal level in Australia under the IGA. However, in accordance with the principles established in the IGA, Australian states and territories separately regulate online gambling in their respective jurisdictions under the relevant legislation.

Betting

Under the IGA, betting is considered to be an “excluded wagering service”. Accordingly, online betting may be provided legally under the IGA as a “regulated interactive gambling service” when offered by an operator that holds a licence granted by an Australian state or territory.

Bingo

The treatment of online bingo games is unclear under the IGA. The authorities, however, view online bingo as being prohibited under the IGA and as unable to be provided legally to persons present in Australia.

Casinos

The offering of online casinos is prohibited under the IGA and cannot be offered legally to persons physically present in Australia.

Lotteries

Under the IGA, a lottery will be considered an “excluded lottery service” if it is a service for the conducting of a lottery or a service for the supply of lottery tickets.

Accordingly, online lotteries may be conducted legally as a “regulated interactive gambling service” when offered by an operator that holds a licence granted by an Australian state or territory.

Online scratch lotteries and any other online instant lotteries are specifically excluded from the definition of “excluded lottery service” and are, therefore, prohibited under the IGA.

Fantasy Sports

Fantasy sports are treated as a betting activity under Australian law.

Social Gaming

A game constitutes a gambling service if the following three elements are present:

• prize element – the game is played for money or anything else of value;
• chance element – the game is a game of chance or of mixed chance and skill; and
• consideration element – a customer of the service pays, or agrees to pay, to play or enter the game.

Generally, the prize element and/or consideration element will not be present in a social game. In such circumstances, social games would not constitute a gambling service under the IGA and would not require a licence to be offered.

Classification requirements are being introduced from September 2024 in relation to computer games and social games containing gambling-like content (see 1.1 Current Outlook and Recent Changes).

Poker

Under the IGA, poker is considered a gambling service and is prohibited. It cannot be offered legally online to persons physically present in Australia.

Land-based gambling is regulated at the state and territory level. Unlike online gambling, there is no legislation regulating land-based gambling specifically at the federal level. Each state and territory has specific legislation for the regulation of land-based gambling.

Betting

Land-based betting can be provided on-course by licensed bookmakers in all Australian states and territories. (Some of these bookmakers also provide services online or over the telephone.)

In each state and territory, licensed entities can conduct off-course betting. However, a subsidiary of Tabcorp Holdings Ltd (a company listed on the Australian Securities Exchange) holds the off-course betting licence in all states and territories, except for Western Australia. The licensee is also granted a statutory monopoly to conduct totalisator betting. In Western Australia, the licence is held by a government entity.

Poker

Licensed casinos can conduct land-based poker. Poker may also be played in hotels and clubs, provided that no third party collects a share or percentage from the amounts paid by the players to participate in the poker game.

Bingo

Land-based bingo games are treated differently under the laws of each state and territory. Generally, a licence will not be required if the prize is below a threshold established in the applicable legislation.

Casinos

Casino games are offered in land-based casinos under the licence(s) issued in each state and territory. The games that may be offered under a casino licence are table games (including poker) and gaming machines.

Gaming Machines

Gaming machines that offer slots games – known as poker machines in Australia – are permitted in land-based casinos licensed in each state and territory. Slots are also permitted in clubs and hotels in all states and territories (except Western Australia) under the relevant legislation.

Lotteries

Land-based lotteries can be conducted in Australia under a licence issued by each state and territory. An exclusive licence is granted in each state and territory to conduct a lottery. The Lottery Corporation Limited (a company listed on the Australian Securities Exchange), through its subsidiaries, holds the lottery licence in each state and territory, except for Western Australia. Lottery tickets are available for purchase through newsagents and convenience stores, as well as online.

The following list of Australian gambling legislation at various levels is not exhaustive.

Various rules, guidelines, directions, orders and standards that are issued by the regulator and/or the responsible minister also apply to the gambling sector and must be complied with.

Federal

The following laws apply at the federal level:

• Interactive Gambling Act 2001;
• Interactive Gambling Regulations 2019;
• Interactive Gambling (National Self-exclusion Register) Register Rules 2022;
• Anti-Money Laundering and Counter-Terrorism Financing Act 2006; and
• Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No 1).

New South Wales

The following laws apply in New South Wales:

• Betting and Racing Act 1998;
• Betting and Racing Regulation 2022;
• Betting Tax Act 2001;
• Casino Control Act 1992;
• Casino Control Regulation 2019;
• Community Gaming Act 2018;
• Community Gaming Regulation 2020;
• Gambling (Two-Up) Act 1998;
• Gaming and Liquor Administration Act 2007;
• Gaming and Liquor Administration Regulation 2016;
• Gaming Machines Act 2001;
• Gaming Machines Regulation 2019;
• Gaming Machine Tax Act 2001;
• Public Lotteries Act 1996;
• Public Lotteries Regulation 2016;
• Totalizator Act 1997;
• Totalizator Regulation 2012;
• Totalizator Agency Board Privatisation Act 1997;
• Unlawful Gambling Act 1998;
• Unlawful Gambling Regulation 2021; and
• Bookmaker Declared Betting Events Betting Rules.

Queensland

The following laws apply in Queensland:

• Betting Tax Act 2018;
• Breakwater Island Casino Agreement Act 1984;
• Brisbane Casino Agreement Act 1992;
• Cairns Casino Agreement Act 1993;
• Casino Control Act 1982;
• Casino Control and Other Legislation Amendment Bill 2023;
• Casino Control Regulation 1999;
• Charitable and Non-Profit Gaming Act 1999;
• Charitable and Non-Profit Gaming Regulation 1999;
• Gaming Machine Act 1991;
• Gaming Machine Regulation 2002;
• Interactive Gambling (Player Protection) Act 1998;
• Interactive Gambling (Player Protection) Regulation 1998;
• Jupiters Casino Agreement Act 1983;
• Keno Act 1996;
• Keno Regulation 2007;
• Lotteries Act 1997;
• Lotteries Regulation 2007;
• Queen’s Wharf Brisbane Act 2016;
• Queen’s Wharf Brisbane Regulation 2016;
• Racing Act 2002;
• Racing Regulation 2023;
• Racing Integrity Act 2016;
• Racing Integrity Regulation 2016;
• Wagering Act 1998;
• Wagering Regulation 1999;
• Casino Gaming Rule;
• Charitable and Non-Profit Gaming Rule 2010;
• Keno Act 1996;
• Keno Regulation 2007;
• Keno Rule 2010;
• Lotteries Act 1997;
• Lotteries Regulation 2007;
• Lotteries Rule; and
• Wagering Rule 2010.

Victoria

The following laws apply in Victoria:

• Casino (Management Agreement) Act 1993;
• Casino Control Act 1991;
• Casino Control (Fees) Regulations 2015;
• Gambling Regulation Act 2003;
• Gambling Regulations 2015;
• Gambling Regulation (Pre-commitment and Loyalty Scheme) Regulations 2014;
• Racing Act 1958;
• Victorian Responsible Gambling Foundation Act 2011;
• Victorian Ministerial Direction for Responsible Gambling Codes of Conduct dated 31 March 2023; and
• Victorian Ministerial Direction for Harm Minimisation dated 6 July 2022.

Northern Territory

The following laws apply in the Northern Territory:

• Gaming Control Act 1993;
• Gaming Control (Community Gaming) Regulations 2006;
• Gaming Control (Gaming Machines) Regulations 1995;
• Gaming Control (Internet Gaming) Regulations 1998;
• Gaming Control (Licensing) Regulations 1995;
• Gaming Control (Reviewable Decisions) Regulations 2014;
• Gaming Control (Taxes and Levies) Regulations 2015;
• Gaming Machine Act 1995;
• Gaming Machine Regulations 1995;
• Gaming Machine Rules 2001;
• Racing and Betting Act 1983;
• Racing and Betting Regulations 1984;
• Totalisator Licensing and Regulation Act 2000;
• Totalisator Licensing and Regulation Regulations 2000;
• Totalisator Licensing and Regulation (Arbitration) Regulations 2000;
• Totalizator Rules 1979;
• Unlawful Betting Act 1989;
• Northern Territory Code of Practice for Gaming Harm Minimisation 2023;
• Northern Territory Code of Practice for Responsible Gambling 2022;
• Northern Territory Code of Practice for Responsible Online Gambling 2019; and
• Northern Territory Code of Practice for Responsible Service of Online Gambling 2019.

Australian Capital Territory

The following laws apply in the Australian Capital Territory:

• Casino Control Act 2006;
• Casino Control Regulation 2006;
• Casino (Electronic Gaming) Act 2017;
• Casino (Electronic Gaming) Regulation 2018;
• Gambling and Racing Control Act 1999;
• Gambling and Racing Control (Code of Practice) Regulation 2002;
• Gaming Machine Act 2004;
• Gaming Machine Regulation 2004;
• Gambling Machine (Offset Amounts) Regulation 2018;
• Interactive Gambling Act 1998;
• Interactive Gambling Regulation 1998;
• Lotteries Act 1964;
• Pool Betting Act 1964;
• Race and Sports Bookmaking Act 2001;
• Race and Sports Bookmaking Regulation 2001;
• Racing Act 1999;
• Racing Regulation 2010;
• Totalisator Act 2014;
• Unlawful Gambling Act 2009; and
• Unlawful Gambling Regulation 2010.

South Australia

The following laws apply in South Australia:

• Authorised Betting Operations Act 2000;
• Authorised Betting Operations Regulations 2016;
• Casino Act 1997;
• Casino Regulations 2013;
• Gambling Administration Act 2019;
• Gambling Administration Regulations 2020;
• Gaming Machines Act 1992;
• Gaming Machines Regulations 2020;
• Gaming Offences Act 1936;
• Gaming Offences Regulation 2021;
• Lotteries Act 2019;
• Lotteries Regulation 2021;
• Problem Gambling Family Protection Orders Act 2004;
• State Lotteries Act 1966;
• Gambling Codes of Practice Notice 2013;
• Gaming Machine Code of Practice 2020;
• State Lotteries Gambling Code of Practice 2021;
• Casino Gambling Code of Practice 2022; and
• Authorised Betting Operations Gambling Code of Practice Variation Notice 2022.

Western Australia

The following laws apply in Western Australia:

• Betting Control Act 1954;
• Betting Control Regulations 1978;
• Betting Tax Assessment Act 2018;
• Casino (Burswood Island) Agreement Act 1985;
• Casino Control Act 1984;
• Casino Control Regulations 1999;
• Casino Control (Burswood Island) (Licensing of Employees) Regulations 1985;
• Gaming and Wagering Commission Act 1987;
• Gaming and Wagering Commission Regulations 1988;
• Gaming and Wagering Commission (Continuing Lotteries Levy) Act 2000;
• Gaming and Wagering Commission (Continuing Lotteries Levy) Regulations 2000;
• Gaming and Betting (Contracts and Securities) Act 1985;
• Racing and Wagering Western Australia Act 2003;
• Rules of Wagering 2005;
• Racing and Wagering Western Australia Regulations 2003;
• Racing Restriction Act 2003;
• Racing Bets Levy Act 2009;
• Racing Bets Levy Regulations 2009;
• Racing Penalties (Appeals) Act 1990; and
• Racing Penalties (Appeals) Regulations 1991.

Tasmania

The following laws apply in Tasmania:

• Gaming Control Act 1993;
• Gaming Control Regulations 2014;
• Gaming Control Amendment (Gaming Operator) Regulations 2023;
• TT Line Gaming Act 1993;
• TT Line Gaming Regulations 2014; and
• Responsible Gambling Code of Practice for Tasmania.

As explained in 2.1 Online, only online gambling is defined at the federal level, under the IGA.

The laws of the Australian states and territories broadly define the term “gambling” to capture land-based and online gambling that has a connection with the relevant state or territory. In some cases, skill-based games are treated as gambling.

It is necessary to refer to the relevant legislation in each state and territory for a definition of land-based gambling. Sources of legislation in various Australian states and territories make reference to an “unlawful game”, rather than specifically define “gambling”.

Section 4 of the IGA defines a “gambling service” as a service:

• for the placing, making, receiving or acceptance of bets;
• the sole or dominant purpose of which is to introduce individuals who wish to make or place bets to individuals who are willing to receive or accept those bets;
• for the conduct of a lottery;
• for the supply of lottery tickets;
• for the conduct of a game, where the game is played for money or anything else of value, the game is a game of chance or of mixed chance and skill, and a customer of the service gives ‒ or agrees to give – consideration to play or enter the game; or
• that is not covered by any of the above but is understood to be a gambling service within the ordinary meaning of that expression.

The key offences vary from one jurisdiction to another. However, generally, key offences comprise the conduct, offering, provision and/or facilitation of unlawful gambling services or prohibited gambling services.

Penalties that apply in respect of the conduct, offering, provision and/or facilitation of the provision of unlawful gambling or prohibited gambling services vary between Australian jurisdictions.

The penalties for a contravention of the IGA are substantial. The following penalties apply under the IGA:

• criminal offence – for an individual, up to AUD1.565 million per day, or up to five times that for a corporation (ie, AUD7.825 million per day); or
• civil offence – for an individual, up to AUD2,347,500 per day, or up to five times that for a corporation (ie, AUD11,737,500 per day).

Most of the Australian legislative reform relating to gambling that has occurred in the past year results from the implementation of the final NCPF measures relating to online wagering services. Each state and territory has legislated the necessary amendments to their gambling laws to implement these measures (see 1.1 Current Outlook and Recent Changes).

Victoria

The Gambling Taxation Act 2023 (the “Act”) became law on 6 June 2023. The Act implements stricter casino tax arrangements from 1 July 2023. These tax arrangements will be administered by the Commissioner of State Revenue (the “Commissioner”) under the Taxation Administration Act 1997. The Act aims to extend the Taxation Administration Act 1997 to cover casino taxes payable by the casino operator. (This implements a recommendation in the Report of the 2021 Royal Commission into Crown Melbourne.)

Other key changes introduced by the Act include:

• consolidation of gambling tax provisions;
• repealing existing keno tax, wagering and betting tax provisions under the Gambling Regulation Act 2003; and 
• transferring responsibility for collecting and administering casino taxes from the Victorian Gambling and Casino Control Commission (VGCCC) to the Commissioner.

Federal

The main bill tabled in 2023 in the Federal Parliament in relation to gambling is the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 (the “Bill”). This will prohibit the use of credit cards and digital currency (including cryptocurrency) in online wagering services. This ban will not apply to online lotteries. The Bill was tabled by the Federal Government on 13 September 2023 and has passed the House of Representatives. It is being considered by the Senate.

The proposed ban in the Bill relating to the use of credit cards would also prohibit the use of an account, service or facility which allows payment to be made by means of a credit card.

The Bill provides online wagering operators with a six-month transition period to implement the necessary changes for banning the use of credit cards and digital currency. A breach of the ban, by accepting from a customer payment by way of credit card and/or digital currency for wagering online, could result in a fine of AUD234,750. 

There are three other bills tabled before the Federal Parliament relating to online gambling and to proposed bans or prohibitions on gambling advertisements. These bills were not tabled by the Federal Government; it is likely that they will not proceed and will be superseded by amendments which the Federal Government may propose in relation to online wagering advertising, following its review of the Federal Parliamentary Committee Inquiry Report recommendations (see 1.1 Current Outlook and Recent Changes). 

Queensland

The Casino Control and Other Legislation Amendment Bill 2023 was tabled in Queensland to propose amendments to the Casino Control Act 1982 and other gambling legislation.

In relation to the proposed amendments to the Casino Control Act 1982, the bill proposes the following.

• Increases in penalties for breaches.
• The introduction of a supervision levy to fund the regulation of casinos, and the conducting of programmes aimed at reducing gambling harm.
• The potential enactment of regulations to introduce:
1. limits on the amount of cash a person can use in a casino in a 24-hour period;
2. a requirement for a player card to be used by customers of a casino, and the requirements of the player card; and
3. a requirement for casinos to introduce a pre-commitment system.
• The introduction of an obligation for casino operators to be subject to a full review at intervals of no longer than five years.
• Requirements relating to the exclusion of customers.

The key regulatory bodies responsible for supervising gambling in Australia are:

• Australia (ie, the federal regulator) – the ACMA and Australian Transaction Reports and Analysis Centre (AUSTRAC);
• Australian Capital Territory – the Australian Capital Territory Gambling and Racing Commission;
• New South Wales – Liquor & Gaming NSW, the ILGA and the NICC;
• Northern Territory – the Northern Territory Racing Commission (NTRC) and Licensing NT;
• Queensland – the Office of Liquor and Gaming Regulation;
• South Australia – Consumer and Business Services;
• Tasmania – the Liquor and Gaming Commission;
• Victoria – the VGCCC and the Department of Justice and Community Safety; and
• Western Australia – the Gaming and Wagering Commission and the Department of Local Government, Sport and Cultural Industries.

The IGA takes a prohibitionist approach regarding the regulation of online gambling in Australia. The IGA is drafted in a manner that prohibits all online gambling in Australia except for those activities that:

• are considered regulated interactive gambling services that may be licensed; or
• are not considered to be prohibited interactive gambling services.

Generally, the state and territory regulatory authorities adopt a more prescriptive and interventionist approach in their legislative scheme in order to minimise gambling harm.

The most material changes relate to:

• a bill tabled in the Federal Parliament to introduce a ban on the use of credit cards and digital currency (including cryptocurrency) in online wagering (see 3.7 Recent or Forthcoming Legislative Changes);
• the classification of social games and computer games containing gambling-like content (see 1.1 Current Outlook and Recent Changes);
• possible legislative amendments as a result of the recommendations contained in the Federal Parliamentary Committee Inquiry Report relating to online gambling and its impact on those experiencing gambling harm (see again 1.1 Current Outlook and Recent Changes); and
• proposed amendments to the casino law in Queensland as a result of the Casino Control and Other Legislation Amendment Bill 2023 (see 3.7 Recent or Forthcoming Legislative Changes).

The licences that are issued by states and territories to conduct online or land-based gambling (as defined in the respective state or territory) are generally B2C licences.

A personal licence may be required at the state and territory level. For the installation and repair of gaming machines in the land-based market, for example, gaming machine technician licences may be required.

Companies may also be required to obtain a B2B licence in the land-based market to offer their services – for example:

• a gaming machine dealer’s/supplier’s licence;
• a service technician’s licence; or
• a gaming machine testing facility licence.

Permits or approvals must be granted by the regulatory body in most states or territories to operate gaming machines in licensed premises.

Land-based licences relating to casinos, lotteries and betting are not readily available. The licences for these activities are for a long term and may be granted on an exclusive basis. These licences are subject to an onerous and lengthy licensing process and to the payment of substantial licence fees and taxes.

Approvals or permits to provide land-based poker machines in clubs and/or hotels are more readily available; however, there may be restrictions or a cap on the number of poker machines available in the state or territory. The authors note that poker machines in Western Australia are installed only in the casino.

Online licences for sports bookmakers and/or lotteries are more readily available. The Northern Territory is the leading online gambling licensing authority in Australia, and there is no limit on the number of online licences that may be granted by the Northern Territory regulator. An increasing number of New South Wales and Victorian on-course bookmakers have also moved online since early 2020.

Land-Based

The duration of the licences issued for land-based activities vary in each state and territory, but are usually for a long duration. The following examples detail the duration of licences that have been granted.

• Casino licence – licences have been granted for a term of up to 99 years. Certain licences have been granted on an exclusive basis for a substantial period and/or exclusivity for a certain area of the state or territory – for example, the licence granted in the Australian Capital Territory was issued in 1992 for a term of 99 years, which included a period of exclusivity.
• Lottery licence – the licence in New South Wales expires in 2050, and the South Australian licence expires in 2052. Both are granted on an exclusive basis.
• Gaming machine licence – licences for gaming machines are not usually granted for a specified period and are valid until the gaming machine licence is surrendered or cancelled.
• Wagering licence – the expiry dates for some of the exclusive wagering licences are:
1. 2024 in Victoria (a request for expressions of interest for a term of at least 12 years commencing on 16 August 2024 was issued on 15 June 2022 – a licence invitation to apply (ITA) period closed on 15 June 2023 which allowed selected respondents to apply for the next licence, and the review process of the ITA is currently underway);
2. 2098 in Queensland;
3. 2064 in the Australian Capital Territory;
4. 2097 in New South Wales; and
5. 2100 in South Australia.
• The Western Australian TAB operating licence expires in August 2024.
• Two keno licences in Victoria have been granted, each for a 20-year term commencing 15 April 2022.

Online Gambling Licence

The duration of an online gambling licence varies; however, for sports bookmakers licensed in the Northern Territory, it is generally a five-year term.

The basic documentation requirements when applying for either a land-based licence or an online licence are similar; documents are required when applying for a gambling licence irrespective of the type of licence.

Due diligence will be conducted to determine the suitability of the applicant company, its shareholders and directors, and that of the holding companies and ultimate beneficiary owners. Furthermore, the business plan, financial documents and forecasts, technical documentation, and the contribution the gambling business will make to the state or territory will all be assessed in respect of any gambling licence (whether land-based or online).

Further detailed information – for example, details of the premises to be used to offer the gambling services and the impact the operation will have on the state and territory – may also be required in respect of any land-based licence application.

Further documentation may be required in the case of an application for a gambling licence where the gambling service is part of a larger project.

The documents that directors and owners are required to submit include:

• details of their employment history;
• a statement of their assets and liabilities;
• supporting documents; and
• police clearance certificates.

The disclosure thresholds for shareholders differ between the states and territories (and the types of gambling licence); generally, the applicable percentage is 10%, but in certain cases it may be 5% or lower.

Land-Based Licence Applications

The timescale for a land-based licence application will vary between the states and territories, and depends on the type of licence for which the application is being made. For example, the current wagering and betting licence in Victoria expires in August 2024; however, the Department of Justice and Community Safety issued an expression of interest in 2021 seeking for prospective applicants for the next licence to be granted upon the expiry of the current licence.

Online Licence Applications

The period that will elapse before the application for an online sports bookmaker licence in the Northern Territory is granted is usually nine months (but may be a shorter or longer period).

Land-Based Licences

The licence application fee for land-based licences depends on the relevant state or territory and on the gambling activity to which the application relates. As explained previously, land-based licences for casinos, lotteries and wagering activities are granted (in the majority of cases) on an exclusive basis; therefore, any fees are usually substantial.

Online Gambling Licences

The application fees applicable in the Northern Territory are:

• for a sports bookmaker or an online gaming licence – AUD27,000; and
• for a betting exchange licence – AUD270,000.

Land-Based Licences

Fees payable with regard to land-based licences vary depending on:

• the type of land-based licence (casinos or other gambling venues);
• the relevant state or territory in which the licence is granted;
• whether exclusivity is granted; and
• the manner of payment (upfront or on an annual basis).

This varies materially. In New South Wales, for example, a one-off payment of AUD256 million was paid in 1995 for a 12-year exclusivity period for a casino licence, and a further AUD100 million was paid in 2007 for a 12-year extension of the exclusivity period. Meanwhile, in Queensland a quarterly licence fee of AUD276,300 (indexed annually) is payable for a casino licence.

Online Gambling Licences

In the Northern Territory, online sports bookmakers and online gaming licensees pay an annual licence fee of AUD27,000, whereas betting exchange licensees pay an annual licence fee of AUD270,000.

The licensing requirements relating to premises will vary depending on the form of land-based gambling, and on the state or territory.

For casinos, most states and territories will include the location of the casino and any conditions relating to the premises in the casino licence conditions.

Clubs and hotels may, under their respective licences, operate gaming machines; however, the gaming machines must be approved in order for them to be operated in the premises.

The conducting of land-based gambling has been materially affected by the casino inquiries and the legislative amendments introduced as a result of their outcome.

NSW has undergone changes in relation to promoting responsible gambling measures in clubs and hotels (see 7.2 Recent or Forthcoming Changes).

The VGCCC issued numerous fines to Crown (the sole casino operator in Victoria) (see again 7.2 Recent or Forthcoming Changes in relation to responsible gambling penalties). Another fine amounting to AUD20 million (the maximum penalty permitted by law is AUD100 million) was issued to Crown in June 2023 for breaching its casino tax obligations by failing to pay the proper casino tax amounts over an extended period of time. Crown had also paid the outstanding tax. 

B2C operators may be licensed in Australia to offer a regulated interactive gambling service (ie, lotteries and betting). A licence that is issued in any state or territory in Australia enables the licensee to provide the licensed services throughout Australia without the requirement of obtaining a licence from any other state or territory.

B2B providers will not generally require a licence to offer their services to Australian operators. The B2B’s systems may, however, be subject to review or approval processes as a condition of the licence granted to the B2C operator that uses their system.

A licensed bookmaker must request the NTRC’s approval for any partnerships entered into where the licensed operator and the other party receive income jointly and carry out business as partners with regard to the licensed activities. Therefore, if the arrangement with an affiliate satisfies these requirements, approval is required from the NTRC.

Generally, white-label providers are not required to be licensed; however, agreements between bookmakers and white-label providers will need to be approved by the NTRC if they meet the requirements set out in 6.3 Affiliates.

Further changes to online wagering have been introduced following the implementation of the NCPF measures (see 1.1 Current Outlook and Recent Changes).

Following the Federal Government’s review of the Federal Parliamentary Committee Inquiry Report entitled You win some, you lose more, amendments are likely to implement recommendations in the report (see again 1.1 Current Outlook and Recent Changes).

A bill banning the use of credit cards and digital currency (including cryptocurrency) in online wagering services has been tabled in the Federal Parliament (see 3.7 Recent or Forthcoming Legislative Changes).

Amendments to the classification of social games and computer games containing gambling-like content will be introduced from September 2024 (see again 1.1 Current Outlook and Recent Changes).

Australian ISPs are required to block illegal offshore gambling websites notified by the ACMA.

The ACMA has been active in using this measure. Since its implementation in November 2019, the ACMA has requested that more than 835 websites (including of affiliates) be blocked. A list of all these websites is available on the ACMA’s website.

Responsible gambling requirements that apply to land-based gambling operators vary depending on the type of licence held by the operator, and on the state and/or territory in which the operator is licensed.

Generally, a gambling service provider will be required to display certain responsible gambling messages and warnings in designated areas, and to provide customers with:

• an option to self-exclude from the gambling services provided by an operator;
• options for imposing voluntary pre-commitment limits; and
• information about responsible gambling support services.

In South Australia, there is a requirement that venues operating more than 30 gaming machines must have facial recognition technology to identify problem gamblers.

For online gambling, each state and territory has separate requirements; however, there has been harmonisation of the requirements for online wagering operators through the implemented NCPF measures (see 1.1 Current Outlook and Recent Changes). Further details regarding other responsible gambling measures are referred to in 7.2 Recent or Forthcoming Changes.

The NCPF has been the catalyst for the introduction of various responsible gambling measures affecting the wagering sector during the past five years. There have been various developments in the final implementation of the remaining NCPF measures (see 1.1 Current Outlook and Recent Changes). 

In New South Wales (NSW), a trial remains ongoing in clubs in which customers are allowed to use cashless methods to play on gaming machines. The technology being trialled connects the gaming machine to a customer’s mobile phone, from which the customers access their digital wallet to transfer money for their game play. The customers may also make use of responsible gambling tools that allow them to:

• set time or spending limits;
• take a break;
• self-exclude from gambling; and
• access real-time data regarding their spending.

This trial is intended to promote responsible gambling and minimise the risk of money laundering. Further initiatives in NSW include:

• the removal of external signage from hotels and clubs relating to the advertising of gaming machines or gaming rooms;
• the reduction of the cash input limit in gaming machines from AUD5,000 to AUD500, with effect from 1 July 2023; and
• establishing an independent expert panel to oversee the cashless gaming trial and to recommend an implementation roadmap for gaming reforms.

Initiatives have been announced by the Victorian government. These include:

• pre-commitment to become mandatory;
• that the amount deposited in a gaming machine will be reduced from AUD1,000 to AUD100;
• mandatory closure of venues (excluding Crown Casino) between 4am and 10am; and
• a three-second spin rate on new gaming machines.

In September 2023, the VGCCC brought charges against Tabcorp and eight venues for allegedly allowing a minor to gamble in breach of Victorian gambling law.

The charges brought against Tabcorp include:

• allowing a minor to gamble; and
• failing to reasonably supervise its self-service touchscreens used by individuals to place bets.

The venue operators have been charged with:

• allowing a minor to gamble;
• allowing a minor within a gaming machine area; and
• failure to ensure that gambling machines were reasonably supervised at all times.

Tabcorp faces a possible fine of close to AUD700,000, and the venues collectively face a maximum fine in excess of AUD1 million.

The VGCCC has issued two fines to Crown in the past year in relation to responsible gambling contraventions. The fines were:

• AUD120 million in November 2022 for breaches of its responsible-service-of-gambling obligations; and
• AUD30 million in April 2023 for its bank cheque practice.

The VGCCC also issued a formal direction to Crown in May 2023 to implement new harm-minimisation and AML measures. The direction requires that, by December 2023, Crown implement:

• mandatory carded pay which will link a customer’s gameplay to the individual’s identity throughout all the gambling machines; and
• mandatory pre-commitment which requires a customer to set spend and time limits prior to playing.

The tools available to players for managing their gambling activities are referred to in 7.1 RG Requirements.

The key AML legislation in Australia is the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (the “AML/CTF Act”). This is supplemented by the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No 1) (the “AML/CTF Rules”), which provides further detail in relation to specific requirements under the AML/CTF Act.

There have been recent amendments to the AML/CTF Rules, and a consultation process is ongoing in relation to reviewing the AML/CTF Laws (see 8.2 Recent or Forthcoming Changes).

Following changes to Australia’s AML/CTF Laws, which came into effect on 29 September 2023, online wagering operators are required to verify a new customer prior to providing a designated service.

This requires online wagering operators to conduct customer identity verification prior to opening an account for a new customer.

A temporary exception to this requirement exists until 28 September 2024, which permits online wagering operators to open an online wagering account for a new customer prior to completing the customer identification verification. An online wagering operator may apply this exception only if the conditions set out in the AML/CTF Rules are satisfied and subject to no other designated services being provided, including deposit of funds or wagering services.

From 29 September 2024, this exception will be repealed and online wagering operators will be required to complete customer identification verification prior to a wagering account being opened.

The AML/CTF Act was amended to allow for parties to rely on know-your-customer (KYC) checks conducted by third parties on the basis that such checks abide by the requirements present under the AML/CTF regime. This also applies to KYC procedures conducted by external jurisdictions if the procedure meets all the requirements prescribed under the AML/CTF Rules.

Consultation commenced on 20 April 2023 regarding modernising Australia’s AML/CTF regime. The purpose of the consultation is to consider what needs to be addressed and implemented to modernise and simplify Australia’s AML/CTF regime in order to meet the current challenges and requirements, and to introduce the Tranche 2 requirements (which relate to non-financial businesses such as real estate agents and professional services – eg, accountants and lawyers). The consultation is ongoing.

The trial using cashless methods to play on gaming machines in clubs in NSW (see 7.2 Recent or Forthcoming Changes), if implemented, is intended to reduce the risk of money laundering arising from the use of gaming machines in clubs and hotels.

Gambling (excluding the provision of a lottery) is considered a “designated service” under the AML/CTF Act, which means that licensed operators are considered “reporting entities”. As such, they are subject to obligations under the AML/CTF Laws, including:

• enrolling with AUSTRAC, for the purpose of the Australian AML/CTF Laws;
• reporting certain business activities and transactions;
• keeping records;
• preparing and adopting an AML/CTF Program;
• having risk-based systems and controls for mitigating and managing money-laundering and terrorism-financing risks associated with the designated service;
• staff training;
• reporting suspicious transactions; and
• putting in place certain KYC requirements.

AUSTRAC concluded a civil penalty action before the Federal Court of Australia against Crown Casino, resulting in a fine of AUD450 million for breaches of its obligations under the AML/CTF Laws, and as a result of certain practices of Crown as investigated by the NSW Inquiry, the Victorian Royal Commission and the Western Australian Royal Commission. AUSTRAC also commenced proceedings before the Federal Court of Australia against The Star on 30 November 2022, and against SkyCity Adelaide on 7 December 2022. Both proceedings are still ongoing.

For further details relating to the proceedings, see 1.1 Current Outlook and Recent Changes.

The relevant regulatory and supervisory agencies in respect of gambling advertising include:

• federal – ACMA;
• Australian Capital Territory – ACT Gambling and Racing Commission;
• New South Wales – Liquor & Gaming NSW;
• Northern Territory – NTRC;
• Queensland – Office of Liquor and Gaming Regulation;
• South Australia – Consumer and Business Services;
• Tasmania – Tasmanian Liquor and Gaming Commission;
• Victoria – VGCCC;
• Western Australia – Department of Local Government, Sport and Cultural Industries; and
• industry bodies – Ad Standards, and the Australian Association of National Advertisers (AANA).

Land-Based Gambling Advertisements

Land-based gambling advertisements are regulated under the relevant state and territory laws. The definition of advertising in the respective legislation in the states and territories also captures online gambling advertisements.

In New South Wales, a “gambling advertisement” is defined in the Betting and Racing Act 1998 (New South Wales) (the “Betting and Racing Act”) as meaning an advertisement that gives publicity to ‒ or otherwise promotes or is intended to promote – participation in gambling activities. Other state and territory statutes provide similar definitions of “gambling advertisement”.

Online Gambling Advertisements

The IGA prohibits “designated interactive gambling service advertisements”. This is defined as any writing, still or moving picture, sign, symbol or other visual image, or audible message (or any combination of two or more of these things) that either gives publicity to or is intended to promote:

• prohibited or unlicensed online gambling services;
• the whole or part of a trade mark in respect of a prohibited or unlicensed online gambling service;
• a domain name or URL that relates to a prohibited or unlicensed online gambling service; or
• any words that are closely associated with a prohibited or unlicensed online gambling service (whether or not they are also closely associated with other kinds of services or products).

This prohibition generally applies to the advertising of gambling services that are prohibited or unlicensed, or of offshore gambling operators.

The key legal and regulatory provisions with regard to advertising vary depending on the type of gambling services being provided, and on the state or territory in which they are provided. There are no licensing provisions in respect of advertising.

Gambling operators’ advertising is also subject to federal laws, including:

• the Australian Consumer Law;
• the Spam Act 2003 (Cth); and
• the Broadcasting Services Act 1992 (Cth).

Land-Based Gambling

Land-based gambling advertisements are generally permitted in Australia. However, there are strict restrictions with regard to what can be included in an advertisement and when advertising is permitted.

As outlined in 9.2 Definition of Advertising, the advertising of gambling services is regulated at the state and territory level and the requirements vary from one jurisdiction to another. There are also industry codes of practice that outline the manner in which gambling services can be advertised on various media platforms.

Generally, gambling advertising will be prohibited or considered unlawful if, among other things, the advertisement:

• encourages a breach of the law;
• depicts or targets persons under the age of 18;
• misrepresents the likelihood of winning;
• relates to a gambling service that is unlawful;
• does not include the requisite responsible gambling messages;
• represents gambling as a means of financial betterment; and/or
• depicts the consumption of alcohol.

Further advertising restrictions are imposed on wagering operators in respect of, among others:

• the offering of inducements to participate in wagering activities or to open a betting account;
• the advertising of live odds during sporting events; and/or
• the promotion of gambling services on television and radio during peak times.

Land-based operators are also required to display responsible gambling messages. However, the requirements around the display of such messages vary significantly from one jurisdiction to another.

Online Gambling

The above-mentioned restrictions also apply to online gambling operators. However, further advertising restrictions are imposed on online wagering operators by means of the NCPF, particularly through the consistent gambling messaging requirements (refer to 1.1 Current Outlook and Recent Changes).

South Australia has a new Authorised Betting Operations Gambling Code of Practice and Gambling Administration Guidelines. They apply to all South Australian licensed bookmakers and registered interstate betting operators. They contain a broader range of requirements relating to inducements and the manner in which they can be advertised. Operators are also required to keep a copy of their advertising material for 12 months following the conclusion of the campaign.

The sanctions and penalties that apply with regard to breaches of advertising restrictions vary significantly depending on the laws of the relevant jurisdiction and on the nature of the contravention.

In New South Wales (NSW), for example, the maximum penalty prescribed for an online betting operator that publishes a gambling advertisement in contravention of the Betting and Racing Act is AUD31,300 for an individual and AUD313,000 for a corporation.

At the federal level, contraventions of the provisions relating to advertising in the IGA may result in fines of up to AUD56,340 for an individual and AUD281,700 for a corporation.

A penalty notice scheme was introduced in NSW enabling the LGNSW to issue a criminal penalty notice, which requires the payment of a fine if a breach occurs. This differs from the previous scheme under which penalties would only be imposed by the regulator through action in court proceedings. A similar scheme was introduced in Victoria. This supplements the procedure under which penalties were only imposed by the regulator through action in court proceedings.

On 14 April 2023, the LGNSW announced that wagering operator Betr had been fined AUD210,000 in relation to odds offers offered and advertised during major sporting and racing events in October 2022, in breach of the NSW gambling law prohibitions on the advertising of inducements to participate in gambling activity, including inducements to open a betting account. The fine against Betr was the first time that the LGNSW’s power to issue a penalty notice had been used.

In May 2023, Betchoice (trading as Unibet) was fined AUD60,000 by a Sydney Court for promotions which contained inducements to participate in gambling activity and to open a betting account in breach of NSW gambling law. 

In April 2023, the ACMA announced that it had issued a formal warning to Streamotion Pty Ltd (the operator of Kayo Sports service – a sports streaming provider) in relation to the display of gambling advertisements during live sporting events.

The implementation of nationally consistent changes to gambling messaging as part of the NCPF was introduced on 30 March 2023 (see 1.1 Current Outlook and Recent Changes). Further amendments may be introduced following the Federal Government’s review of the recommendations contained in the Federal Parliamentary Committee Inquiry Report on online gambling (see again 1.1 Current Outlook and Recent Changes).

The disclosure requirements for acquisitions of an interest and/or a change of control in respect of a gambling operator vary from one jurisdiction to another. Accordingly, it is necessary to refer to the provisions of the relevant legislation in the state or territory in which the relevant entity holds a licence.

Land-based casino licences cannot be transferred. Another company may, however, acquire shares in the licensee. In this scenario, if the share sale exceeds a certain threshold (usually 5% or 10% of the issued shares), the purchaser will need to notify and obtain approval from the relevant regulator. In New South Wales, for example, the purchaser must disclose all information required for the regulator to investigate the suitability of the purchaser. 

Online lottery and wagering licences cannot be transferred. Another company may, however, acquire shares in the licensee. If the transfer of shares exceeds a certain threshold (usually 5% or 10% of the issued shares), the purchaser will need to notify and obtain regulatory approval in the relevant jurisdiction. The licensee and the purchaser in any transfer of shares that exceeds the threshold (eg, 10%) must disclose the information that the regulator needs to consider whether approval should be granted for the transfer of shares in the licensed company.

Generally, an acquisition of shares (directly or indirectly) that exceeds 5% or 10% of the issued shares in the licensee will trigger change-of-interest provisions that require the notification or approval of the purchaser and associated persons.

Passive investors will not usually be excluded from the requirements relating to change of control if they exceed the percentage threshold.

The ACMA has broad investigative and enforcement powers under the IGA, including powers for:

• issuing formal warnings;
• issuing infringement notices;
• notifying the Department of Home Affairs (Australia’s immigration and border protection agency) of the names of directors to be included on the Movement Alert List;
• pecuniary penalties;
• directions;
• cease-and-desist orders;
• notifying foreign regulators of the operator’s breaches of the IGA; and/or
• seeking an order from the Federal Court of Australia for the imposition of substantial civil penalties.

The regulatory bodies’ enforcement powers vary between the states and territories. In general, state and territory regulators also have broad investigatory and enforcement powers, and can:

• commence civil and criminal proceedings (where relevant);
• conduct licence reviews; and
• where required, vary licence conditions, or suspend or cancel the licence.

Regulators are vigilant about ensuring that operators comply with the applicable laws, and will proceed to take enforcement action when required.

When considering whether to impose sanctions (eg, suspending or revoking a licence, or varying licence conditions), regulators will consider the administrative and legislative tools that they have at their disposal for implementing and enforcing these sanctions.

All state-based regulators have the authority to undertake enforcement action against wagering operators. The New South Wales (NSW) regulator, Liquor & Gaming NSW, is the most active regulator when it comes to taking enforcement action regarding advertising breaches. When determining the penalty, a court will take into consideration various factors, such as:

• the medium of the publication;
• the intended audience and context of the advertisement;
• whether persons were actually induced by the advertisement (ie, whether they signed up for an account);
• the offending history/record of the publisher; and
• the number of people in NSW who viewed the advertisement.

A separate penalty may be imposed for each separate publication and, therefore, a separate breach. Recently, amendments have been made to the relevant statute to permit Liquor & Gaming NSW to issue fines in respect of advertising breaches.

Penalties for an advertising breach under the IGA are imposed following civil or criminal court proceedings, and the amount of the penalty is determined by the court in accordance with the amount of the penalty under the relevant provision of the IGA.

Following the various casino inquiries that found that each of the relevant casinos acted in an inappropriate manner, amendments have been made to relevant legislation to provide for a substantial increase in penalties. Fines of up to AUD100 million may now be imposed (and have been).

Fines have been issued in NSW for breaches of advertising prohibitions (see 9.5 Sanctions/Penalties).

Both the federal and state regimes allow for criminal and civil penalties to be enforced against individuals for relevant breaches.

On a federal level, the IGA provides that the body corporate and/or a director, employee or agent of the body corporate may be liable for any conduct engaged in on behalf of the body corporate. Therefore, both the company and individuals may be liable for a breach of the IGA.

At the state/territory level, all states and territories have provisions in the gambling law and/or in the criminal law that allow for executive officers and senior management to be considered in contravention of the same provision as that contravened by the body corporate. On this basis, they can be held liable for the contravention and be subject to appropriate civil and criminal penalties.

Land-Based Gambling

The rate of gambling tax payable by operators varies depending on the state and/or territory in which the operator is licensed, and on the type of land-based gambling activity being provided. For an indication of the tax rates, reference is made to the following examples.

Casino tax

New South Wales

The Star Entertainment Group (“The Star”) and the New South Wales (NSW) government reached an updated agreement regarding gaming taxes applicable on gaming machines. The updated agreement, which amends the agreement with the previous NSW government, will result in a gradual tax increase. The applicable tax is:

• 20.91% from 1 July 2023 to 30 June 2024;
• 21.91% from 1 July 2024 to 30 June 2027; and
• 22.91% from 1 July 2027 to 30 June 2030.

From 1 July 2030, the below tiered tax rate will apply:

• 0 on gaming machines with less that AUD2,666 average poker machine revenue;
• 37.6% on gaming machines with AUD2,666 to AUD6,667 average poker machine revenue;
• 42.1% on gaming machines with AUD6,667 to AUD12,500 average poker machine revenue; and
• 51.6% on gaming machines with over AUD12,500 average poker machine revenue.

This updated agreement includes obligations on The Star:

• to maintain more than 3,000 jobs for the next six years;
• to participate in the NSW cashless gaming trial; and
• for all gaming machines in The Star to be cashless by 30 August 2024.

Lotteries tax

Queensland

Under the Lotteries Regulation 2007 (Queensland), the lottery tax payable is 73.48% of the lottery operator’s gross monthly revenue minus the lower of:

• the global goods and services tax (GST) amount; or
• the gross tax amount for the month.

Victoria

The following applies in Victoria.

• Under the Gambling Taxation Act 2023 (Victoria), the tax payable by online keno operators is 24.24% on net keno revenue in respect of that month.
• Under the Gambling Regulation Act 2003 (Victoria), the lottery tax payable by the lottery operator is:
1. 79.4% of the player loss in respect of supplies on which GST is payable; and
2. 90% of the player loss in respect of supplies on which GST is not payable.

Wagering tax

New South Wales

Under the Betting Tax Act 2001 No 43 (New South Wales), the tax payable in respect of totalisator on-course and off-course betting from 1 July 2022 is 3.49% of totalisator commissions on fixed-odds racing.

Race-fields fees

The applicable rates vary between each state and territory. Certain states and territories have established a fixed rate for the applicable fees; however, in other states and territories the applicable rates vary depending on the category of race on which bets are taken.

Online Gambling

The gambling tax that is applicable in the Northern Territory is as follows.

• For online gaming – the tax rate is determined by formal agreement with the relevant minister.
• For the bookmaker ‒ the tax payable is:
1. 5% of gross monthly profit; and
2. currently capped at AUD1.35 million per financial year.

An online betting operator, irrespective of the jurisdiction in which it is licensed, will also be subject to a point-of-consumption tax. This is charged based on net wagering revenue in the following states and territories (subject to certain thresholds being achieved):

• South Australia – 15%;
• New South Wales – 15%;
• Victoria – 10% (from 1 July 2024, the rate will increase to 15%);
• Queensland – 20%;
• Australian Capital Territory – 25%;
• Western Australia – 15%; and
• Tasmania – 15%.

All the above taxes are calculated in a slightly different manner. Further enquiries should be made to obtain details of the calculations.

Several reforms are anticipated in the coming months.

These reforms are outlined in different sections of this chapter (see 3.7 Recent or Forthcoming Legislative Changes, etc).