Gaming Law 2024 Comparisons

Legislative and Regulatory Review

Consolidation of improved responsible gambling measures and suitability requirements has been the central aspect of changes in the Australian gambling regulatory framework in 2024. The implementation of the measures introduced as a result of the outcomes of inquiries relating to land-based casino operators and the National Consumer Protection Framework (NCPF) (for online wagering operators) continued throughout the year. Australian gambling regulators continued to implement the approach adopted in relation to the updated regulatory framework for gambling in Australia, consisting of a more comprehensive suitability review of individuals involved in the ownership, management and operations of a gambling business, and in relation to the introduction of further responsible gambling measures. 

The Australian online wagering sector awaits the response of the Federal government to the recommendations of the Federal Parliamentary Committee report entitled “You win some, you lose more”. The report was published in June 2023, following the Committee’s inquiry into online gambling and its impact on those experiencing gambling harm. The report includes 31 recommendations, and it is anticipated that the Federal government will introduce measures reflecting at least some of the recommendations to further ensure responsible gambling.

Although the Federal government has yet to announce what measures will be adopted, there have been statements from officials of the Federal government and media reports which indicate that further restrictions on the advertising of online wagering services will be implemented; however, it is yet to be seen whether a complete prohibition will be implemented or if limited advertising prohibitions will be adopted.

The new Racing and Wagering Act 2024 (NT) and the Racing and Wagering Regulations 2024 (NT) (together the “New NT Wagering Laws”) came into effect on 1 July 2024. These new Northern Territory laws introduce a new regulatory framework for the licensing and regulation of Northern Territory online wagering operators. 

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”) concluded two of the three enforcement actions that it had initiated against leading Australian casino operators following investigations into their compliance with the AML/CTF Laws.

In 2024, the Federal Court of Australia made orders confirming the settlement reached between AUSTRAC and SkyCity. SkyCity was ordered to pay a penalty of AUD67 million for breaches of the AML/CTF Laws. This decision follows the Federal Court of Australia proceedings in 2023, which resulted in an amount of AUD450 million being paid by Crown Melbourne and Crown Perth as part of the settlement with AUSTRAC in relation to claims brought in respect of serious and systemic non-compliances of their obligations under the AML/CTF Laws. The proceedings brought by AUSTRAC in the Federal Court of Australia against The Star in relation to alleged breaches of the AML/CTF Laws are ongoing.

AUSTRAC’s review of the online wagering operators that commenced in 2022 has not been completed. The status of each case at the date of writing this chapter is as follows.

• Entain Australia – the enforcement investigation which commenced in September 2022 is ongoing. It has been reported that the parties continue to liaise in relation to implementing a detailed remediation plan, and that AUSTRAC is continuing its review to determine the appropriate outcome of its investigation.
• Sportsbet – following the report of the external auditor appointed to review Sportsbet’s compliance with the AML/CTF Laws, AUSTRAC accepted an enforceable undertaking from Sportsbet which binds it to an ongoing remedial plan to improve its AML/CTF programme. Sportsbet is required to appoint an auditor that is tasked with monitoring Sportsbet’s progress with the remediation plan and providing periodic reports to AUSTRAC.
• bet365 – following AUSTRAC’s review of the report of the external auditor appointed to review bet365’s compliance with the AML/CTF Laws, AUSTRAC commenced an enforcement investigation in March 2024.

It is anticipated that the final outcome of these reviews will be concluded in the coming months. 

The New South Wales (NSW) government established the Independent Panel on Gaming Reform, which is tasked with advising the NSW government in relation to the cashless gaming trials in hotels and clubs in NSW, gaming reform implementation, and providing recommendations for the use of funds allocated to the harm minimisation fund. The trials on cashless methods for play on gaming machines (also referred to as pokies) 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 NSW government has also introduced a suite of responsible gambling measures addressed at the use of gaming machines in hotels and clubs. 

The New Zealand (NZ) government has announced that it will introduce a regulatory regime to license online casino operators to provide services to customers located in NZ. This regulatory regime is anticipated to come into effect in 2026.

A number of these recent changes are discussed in further detail below.

AUSTRAC Proceedings

The Star proceedings

The civil penalty proceedings in the Federal Court of Australia commenced by AUSTRAC on 30 November 2022 against The Star Pty Limited and The Star Entertainment QLD Limited (the “Star Entities”) for alleged breaches of the AML/CTF Laws are ongoing. The court hearings have been adjourned for a further case management hearing.

On 2 May 2024, the Federal Court set the matter for a three week hearing commencing on 2 June 2025. 

SkyCity proceedings

The civil penalty proceedings brought by AUSTRAC against SkyCity Adelaide Pty Limited (“SkyCity Adelaide”) have been settled. This has been confirmed in orders made by the Federal Court of Australia under which SkyCity Adelaide is required to pay a AUD67 million penalty in respect of breaches of the AML/CTF Laws. The court decision was handed down on 7 June 2024.

SkyCity Adelaide’s AML/CTF programme was considered to have failed to meet the requirements of the AML/CTF Laws, and SkyCity Adelaide was considered to not have carried out appropriate ongoing customer due diligence, enabling high-risk customers to obscure the source and ownership of funds. It was also considered to have failed to establish appropriate frameworks to provide the necessary oversight by the board and senior management of its AML/CTF programme.

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) was the appointment of a special manager to oversee the operations of Crown Melbourne, and to monitor whether Crown Melbourne was taking steps to address the issues and failings identified by the Royal Commission. Stephen O’Bryan KC was appointed as special manager for a two-year period effective from 1 January 2022.

In his final report (published in December 2023), the special manager indicated that he considered that Crown Melbourne had addressed the systemic failings identified by the Royal Commission and set out evidence of Crown Melbourne’s transformation.

Subsequently, in its decision published on 26 March 2024, the Victorian Gambling and Casino Control Commission (VGCCC) concluded that Crown Melbourne had returned to suitability to hold the licence to operate the casino in Melbourne and that it was in the public interest that the Crown Melbourne casino licence remain in force.

Western Australia

The term of the Office of the Independent Monitor to oversee, monitor and report on the two-year remediation plan at Crown Perth was extended to 30 April 2025. The role of the Independent Monitor commenced on 31 October 2022.

Crown Perth has been granted until 31 January 2025 to implement its remediation plan. The Independent Monitor will assess the implementation of the remediation plan to confirm whether it satisfies the findings and recommendations of the final report of the Royal Commission in Western Australia.

New South Wales

The Star

The NSW Independent Liquor & Gaming Authority appointed Adam Bell SC in September 2021 to conduct an inquiry of The Star Casino in Sydney. The report of this inquiry was published on 31 August 2022 (the “Bell Report”) and found that The Star Casino in Sydney was not suitable to be concerned in or associated with the management and operation of a casino in NSW. The Bell Report made 30 recommendations directed at addressing issues identified during the inquiry.

In February 2024, the NSW casino regulator, the NSW Independent Casino Commission (NICC), appointed Adam Bell SC to conduct a second independent inquiry into the operations and remediation of The Star in Sydney after the NICC considered that, following the Bell Report, the casino operator had failed to make the required remediation. The second inquiry was requested to examine whether sufficient progress had been made to implement structural changes required for it to be considered suitable to hold a casino licence in NSW.

Adam Bell SC’s second report of his 2024 independent inquiry was published on 30 August 2024 (the “Bell 2 Report”). The Bell 2 Report found that The Star continued not to be suitable to be concerned in or associated with the management and operation of The Star Sydney Casino.

Although the Bell 2 Report acknowledged that there had been substantial reform of The Star, including a substantial expansion of The Star’s financial crime and risk teams, the development and implementation of revised internal control manuals, and it was noted that there had been a material improvement in The Star’s risk management resources, systems, and culture; the Bell 2 Report made key findings to justify its conclusion that The Star remained unsuitable.

The key findings made in the Bell 2 Report were:

• six of the 30 recommendations made in the Bell Report had not been implemented or implementation had not yet been completed;
• The Star was falling short of what is required from a suitable casino operator;
• whilst the development of the remediation plan adopted by The Star following the Bell Report involved a great deal of thought and work, the deadlines were too ambitious, and implementation of the remediation plan had been faced with difficulties and delays;
• whilst there had been a material improvement in risk management culture, cultural reform was still at an early stage and had not been satisfactory;
• The Star’s group leadership team had been dysfunctional and marked with a number of departures and resignations, particularly between 1 September 2022 and 31 July 2024;
• The Star lacked effective governance processes and was not sufficiently independent from its parent company, Star Entertainment; and
• The Star’s relationship with the NICC was poor and underpinned by a new culture of antagonism.

On 17 October 2024, the NICC announced its response to the Bell 2 Report. The NICC imposed a pecuniary penalty in the order of AUD15 million against The Star. 

The Star’s Sydney casino licence will also remain suspended until early 2025.

The term of the special manager appointed to supervise The Star’s operations has been extended to 31 March 2025.

The NICC stated that the cancellation of The Star’s licence would have significant economic implications but that more work needed to be done by the operator before it could be considered to be a “compliant and responsible operator.”

The NICC will continue to monitor The Star’s operations.

Crown Casino

Following a finding of unsuitability, Crown Casino commenced operations in its Sydney property under a conditional licence in June 2022.

In April 2024, the NICC determined that Crown Sydney was suitable to retain its NSW restricted gaming licence.

The NICC released its Suitability Assessment Decision and noted in the Decision that a new regulatory agreement had been entered into between the NICC and Crown Sydney and that the licence had been amended to reflect further conditions.

Queensland

The Star’s casino licence in Queensland remains suspended on a deferred basis to 20 December 2024, and the term of the special manager has been extended until 8 December 2024. These measures were implemented as a result of the second Bell inquiry in NSW, to provide the Queensland regulator and the special manager with the necessary time to review the Bell 2 Report. The special manager appointed in NSW was also appointed to oversee The Star in Queensland.

The response of the Queensland authorities to the outcomes of the Bell 2 Report has not yet been announced.

National Consumer Protection Framework

Implementation of all of the measures of the NCPF has required a considerable effort by the Australian licensed online wagering sector.

On-going compliance with the measures introduced under the NCPF is being monitored by gambling regulators in the Australian states and territories. There have been numerous requests by regulators requiring wagering operators to provide evidence of their compliance with the various measures.

On the first anniversary of BetStop – the National Self-Exclusion Register – in August 2024, over 28,000 individuals had applied for a ban on their wagering. It was reported that approximately 40% of the individuals that had registered with BetStop opted for a life-time ban.

The implementation and effectiveness of BetStop is due to be reviewed, with a report expected to be tabled in parliament within 18 months from commencement of the review.

Another responsible gambling measure which came into effect on 11 June 2024 was the prohibition on the use of credit cards and digital currency (including cryptocurrency) to participate in online wagering.

This prohibition also prohibits the use of an account, service or facility which allows payment for wagering purposes to be made by means of a credit card.

Any online wagering operator who contravenes this prohibition by permitting the use of credit cards and/or digital currencies for customers to use their services is subject to fines of up to AUD234,750.

Northern Territory – New Gambling Laws

1 July 2024 saw the coming into effect of the New NT Wagering Laws. The New NT Wagering Laws replace the Racing and Betting Act 1983 (NT). A main purpose of the New NT Wagering Laws is to update the online wagering regulatory regime that applies in the Northern Territory.

The New NT Wagering Laws introduced a number of changes, including:

• the formation of a new commission entitled the Northern Territory Racing and Wagering Commission (NTRWC);
• the term of a licence being extended to a maximum of 20 years;
• the term of a key person licence being extended to a maximum of five years;
• the introduction of a Racing and Wagering Fund (RWF); and
• a requirement for monthly contributions to the RWF by means of a new levy.

The annual tax payable by online wagering operators licensed in the Northern Territory under the New NT Wagering Laws is capped at AUD1,410,000 and is calculated as 5% of the total amount of wagers accepted by the licensee minus the total amount of wagers paid-out by the licensee.

The New NT Wagering Laws confirm continuity for the licences granted under the Racing and Betting Act 1983, and for Codes of Practice and Novelty Events Guidelines issued under the Racing and Betting Act 1983.

NSW Responsible Gambling Measures for Hotels and Clubs

With effect from 1 July 2024, responsible gambling measures were introduced in NSW by amendments to the Gaming Machines Regulation 2019, which apply to clubs and hotels which conduct gaming through the operation in their licensed premises of gaming machines (also known as pokies).

The measures include the following.

• The requirement to have a Responsible Gambling Officer (RGO) on duty in the gaming area where gaming machines are available – this requirement applies to clubs and hotels that have 21 or more gaming machines available in their venue. The number of RGOs that are required to be on duty depends on the number of gaming machines that are in operation. The role of the RGO includes the following duties;
1. promote harm minimisation measures in the venue;
2. identify and inquire with customers that display gambling harm behaviour;
3. notify senior management of serious gambling incidents;
4. assist customers that request to be self-excluded;
5. assist other staff in relation to harm minimisation measures; and
6. record gambling incidents in the incident register;
• The requirement to have a Gambling Incident Register which keeps a record of incidents relating to gambling and gambling harm, including self-exclusion requests, a breach by a customer of a self-exclusion arrangement and incidents involving minors.
• The provision of Advanced Responsible Conduct of Gambling training for RGOs, managers who supervise RGOs, hotel licensees, approved managers and club secretaries. Directors of clubs and hotel companies also need to undergo Responsible Conduct of Gambling training.
• The requirement to have a Gaming Plan of Management (GPM) for each venue which guides staff on the venue’s responsible conduct of gambling obligations. This requirement came into effect on 1 September 2024. The GPM is to be a document that is updated when necessary, in response to changes in the venue, and must be reviewed annually.
• Signage to automated teller machines (ATMs) must not be visible from a gaming machine or any part of the gaming area, and advertising of gaming machines must not be visible from an ATM.       

The NSW government is consulting in relation to the introduction of facial recognition to assist with the implementation and enforcement of player exclusions.

Classification of Social Games and Computer Games

From 22 September 2024, in accordance with the Guidelines for the Classification of Computer Games (the “Guidelines”), computer games containing loot boxes or simulated gambling (including social casinos) are subject to mandatory classification requirements..

The Guidelines require 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).

As a result of the new classification requirements, game providers must implement a change to the manner in which their products are presented, categorised and advertised. 

NZ Update

The NZ government announced in July 2024 that it had agreed to commence the process that will result in the licensing of online casino operators to provide services to customers in NZ.

Although no draft bills or laws are available at the date of writing this chapter, it has been reported that:

• the licence will be specific to the provision of online casino games;
• the number of licences which will be granted will be capped at 15;
• licences will be allocated by means of an auction;
• the term of the licence will be three years; and
• the licensing regime will be in effect by mid-2026.

It is anticipated that there will be a consultation on the new regime in the first half of 2025.

Once the new law is enacted, all online casino operators that are not licensed under the new licensing regime and are providing services to customers located in NZ will be considered illegal.

Earlier in the year, on 28 March 2024, the NZ Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Act containing amendments to the Gaming Duties Act 1971 was passed and introduced a new type of gaming duty, known as the “offshore gambling duty”.

The offshore gambling duty came into effect on 1 July 2024, requiring offshore gambling operators providing online gambling services (ie, online casino type games) to customers located in NZ to pay a 12% duty in addition to goods and services tax (GST).

Offshore gambling operators are required to lodge returns and pay offshore gambling duty on a quarterly basis in a manner that aligns with their current GST returns.

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.

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.

Australian police have prosecuted individuals for match-fixing offences relating to esports events.

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 and the use of cryptocurrency or any other digital currency is prohibited with effect from 11 June 2024.

Online gambling is regulated at the federal level in Australia under the Interactive Gambling Act 2001 (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.

The Federal government released an Issues Paper in July 2024 to seek feedback to assist the government in understanding the impact of keno-type lotteries and foreign-matched lottery products and their gambling harm risks.

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 were introduced on 22 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 Act 2024;
• Casino Control Regulation 1999;
• Casino Gaming Rule;
• Charitable and Non-Profit Gaming Act 1999;
• Charitable and Non-Profit Gaming Regulation 1999;
• Charitable and Non-Profit Gaming Rule 2010;
• 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;
• Keno Rule 2010;
• Lotteries Act 1997;
• Lotteries Regulation 2007;
• Lotteries Rule;
• 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; 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;
• Gambling Taxation Act 2023;
• Racing Act 1958;
• Victorian Responsible Gambling Foundation Repeal and Advisory Councils Act 2024;
• 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 Wagering Act 2024;
• Racing and Wagering Regulations 2024;
• Totalisator Licensing and Regulation Act 2000;
• Totalisator Licensing and Regulation Regulations 2000;
• Totalisator Licensing and Regulation (Arbitration) Regulations 2000;
• 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.

Western Australia

The following laws apply in Western Australia:

• Betting Control Act 1954;
• Betting Control Regulations 1978;
• Betting Tax Act 2018;
• 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 NCPF measures relating to online wagering services. Each state and territory legislated the necessary amendments to their gambling laws to implement these responsible gambling measures (see 1.1 Current Outlook and Recent Changes for updates relating to the NCPF).

Northern Territory

The New NT Wagering Laws came into effect on 1 July 2024. The New NT Wagering Laws modernise the online wagering regulatory regime in the Northern Territory.

The New NT Wagering Laws introduced new measures and, where required, provided continuity between the repealed regulatory regime and the New NT Wagering Laws for operators licensed under the repealed law (see 1.1 Current Outlook and Recent Changes for further information relating to the New NT Wagering Laws).

NSW

Responsible gambling measures relating to clubs and hotels that provide gaming machines were introduced in NSW with effect from 1 July 2024 (see 1.1 Current Outlook and Recent Changes).

Federal

As a result of amendments to the IGA that came into effect on 11 June 2024, the use of credit cards and digital currency for licensed online wagering services is prohibited (see 1.1 Current Outlook and Recent Changes).

A Private Members Bill was tabled in the Federal parliament on 9 October 2024 which proposes amendments to the IGA to introduce a ban on advertising of online wagering services. This Bill is a result of the Federal Parliamentary Committee Inquiry Report recommendations (see 1.1 Current Outlook and Recent Changes). It is likely that this Bill will be superseded by the position that will be taken by the Federal government in response to the report’s recommendations. 

Queensland

On 25 October 2023, the Queensland government introduced the Casino Control and Other Legislation Amendment Bill 2023, which proposed a range of changes to casino, gaming machine, keno and wagering laws in Queensland. The Bill was granted assent on 28 March 2024. The Casino Control Act 1982 was amended to introduce 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;
3. a requirement for casinos to introduce a pre-commitment system; and
4. a code of conduct for casino operators;
• the introduction of an obligation for casino operators to:
1. give the chief executive full access to electronic systems; and
2. be subject to a full review at intervals of no longer than five years;
• a new definition of a “person experiencing harm from gambling”;
• requirements relating to the collection of information about play and providing certain de-identified data to the Office of Liquor and Gaming Regulation;
• requirements relating to the exclusion of customers and information sharing about exclusions; and
• restrictions on direct marketing.

The Gaming Machine Regulation 2022 was amended to introduce the requirement that licensees must display a sign on the premises advertising services available to help persons experiencing, or at risk of experiencing, harm from gambling.

Victoria

The Gambling Legislation Amendment Bill 2023 (Vic) received assent on 8 November 2023. The Bill made various amendments to the Casino Control Act 1991 (Vic) and the Gambling Regulation Act 2003 (Vic) (see 7.3 Recent or Forthcoming Changes).

Western Australia

On 14 August 2024, the Western Australia government introduced the Gambling Legislation Amendment Bill 2024 which proposes amendments to various gambling laws in Western Australia. The amendments are a result of the reform that is being implemented following the Perth Casino Royal Commission.

The amendments in the Bill include:

• granting further powers to the Western Australian gambling regulator (ie, the Gaming and Wagering Commission);
• providing the Gaming and Wagering Commission power to issue infringement notices to address non-compliance with legislative requirements; and
• increasing the penalty that may be imposed by the minister on Racing and Wagering Western Australia from a maximum of AUD100,000 to AUD1,000,000.

Tasmania

In September 2024, the Tasmanian Liquor and Gaming Commission commenced consultation in relation to implementing a mandatory account-based cashless card system for gaming machines in hotels, clubs and casinos. This is a result of the Tasmanian government’s direction to implement a state-wide player card gaming system.

The proposed implementation of the new card system will allow customers to have a single account to use on all gaming machines available in Tasmania, and provide customers with default pre-commitment limits.

The consultation process closed on 18 October 2024, and the feedback would be considered to progress the plan to implement the new card system.

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

• Australia (ie, the federal regulator) – the Australian Communications and Media Authority (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 Independent Liquor & Gaming Authority and the NICC;
• Northern Territory – the NTRWC 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:

• the amendment to the IGA that came into effect on 11 June 2024 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);
• amendments in Victoria introducing mandatory closure periods for all gaming machine areas in a venue (excluding the casino) between 4am and 10am (see 7.3 Recent or Forthcoming Changes).
• amendments in NSW for the introduction of responsible gambling measures applicable to clubs and hotels that provide gaming machines (see again 1.1 Current Outlook and Recent Changes); and
• 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 (see 13.1 Types of Authorisations and Licences).

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 granted 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. 2044 in Victoria;
2. 2098 in Queensland;
3. 2064 in the Australian Capital Territory;
4. 2097 in New South Wales; and
5. 2100 in South Australia.

• Two keno licences in Victoria were 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 maximum term of 20 years under the New NT Wagering Laws.

The basic documentation requirements when applying for either a land-based gambling licence or an online gambling licence are similar.

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 beneficial 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;
• involvement and experience in the gambling industry;
• 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 Department of Justice and Community Safety in Victoria issued expressions of interest:

• in 2021, seeking prospective applicants for the next wagering and betting licence to be granted upon the August 2024 expiration date of the licence – the licence was granted to Tabcorp for a 20-year term commencing on 16 August 2024; and
• on 24 October 2024, to initiate the process to identify the next operator of the monitoring licence, which expires on 15 August 2027.

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 at 4.5 Availability of Licences, 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 – AUD28,200; and
• for a betting exchange licence – AUD282,000.

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.

Online Gambling Licences

In the Northern Territory, online sports bookmakers and online gaming licensees pay an annual licence fee of AUD28,200, whereas betting exchange licensees pay an annual licence fee of AUD282,000.

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 licence, operate gaming machines; however, the gaming machines must be approved in order for them to be operated in the premises.

The conduct 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 1.1 Current Outlook and Recent Changes and 7.3 Recent or Forthcoming Changes).

Victoria has also undergone changes to promote responsible gambling measures in the land-based environment and has issued fines to operators failing to comply with responsible gambling measures (see 7.3 Recent or Forthcoming Changes).

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.

Affiliate services and white-label operators are likely to require approval by the NTRWC to provide services to bookmakers and/or betting exchanges licensed in the Northern Territory (see 6.3 Affiliates and 6.4 White Labels).

A licensed bookmaker or betting exchange must request the NTRWC’s prior approval for any partnerships entered into where the licensed operator provides compensation to the other party for the referral of customers to the licensed activities of the licensed bookmaker or betting exchange. Therefore, if the arrangement with an affiliate satisfies these requirements, prior approval is required from the NTRWC.

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 NTRWC if they meet the requirements set out in 6.3 Affiliates.

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 1,000 websites (including of affiliates) be blocked. A list of all these websites is available on the ACMA’s website.

In relation to amendments to the IGA relating to the introduction of the ban on the use of credit cards and digital currency in online wagering, and the proposed amendment relating to the prohibition on advertising online wagering services, see the Federal commentary in 3.7 Recent or Forthcoming Legislative Changes.

Amendments to the classification of computer games containing gambling-like content came into effect on 22 September 2024 (see 1.1 Current Outlook and Recent Changes).

Amendments have been introduced in NZ to have a requirement for offshore online gambling operators providing online gambling services to customers located in NZ to pay an offshore gambling duty. Further, it was announced that a regulatory regime for the licensing of online casino operators will be introduced in NZ (see 1.1 Current Outlook and Recent Changes).

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 further information relating to responsible gambling measures in the land-based gambling environment see 7.3 Recent or Forthcoming Changes.

For online gambling, each state and territory has differing 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 7.3 Recent or Forthcoming Changes.

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

The NCPF was the catalyst for the introduction of various responsible gambling measures affecting the online wagering sector during the past five years. There were ten NCPF measures, all of which have been implemented. The NCPF measures include:

• a restriction on inducements;
• an obligation to verify customers;
• a requirement to provide responsible service of online gambling training to staff;
• a requirement to provide activity statements to customers;
• the implementation of consistent gambling messaging;
• voluntary opt-out and pre-commitment tools; and
• BetStop.

The inquiries into the operations of land-based casinos also resulted in the introduction of responsible gambling measures in casinos, and hotels and clubs that provide gaming machines.

In NSW, a trial was conducted in clubs and hotels in which customers were allowed to use cashless methods to play on gaming machines. The technology that was being trialled connected the gaming machine to a customer’s mobile phone, from which the customer would access their digital wallet to transfer money for their game play. The customers could also make use of responsible gambling tools that would 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 was intended to promote responsible gambling and minimise the risk of money laundering.

This trial concluded in September 2024, and is due to be considered soon by the Independent Panel on Gaming Reform. A report to the NSW government is expected to be provided in November 2024.

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;
• establishing the Independent Panel on Gaming Reform (see 1.1 Current Outlook and Recent Changes); and
• the implementation of responsible gambling measures in clubs and hotels that provide gaming machines (see 1.1 Current Outlook and Recent Changes).

Various initiatives have been announced by the Victorian government. These include:

• pre-commitment to become mandatory with effect from 1 December 2025;
• the maximum 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, which came into effect on 30 August 2024; and
• a three-second spin rate on new gaming machines.

In January 2024, the VGCCC issued a statewide directive prohibiting Tabcorp’s betting terminals from accepting cash bets on Electronic Betting Terminals unless patrons are within five metres and in the line of sight of the venue’s counter. This regulatory action is part of a broader shift towards cashless gambling in Victoria and Australia.

On 13 June 2024, Tabcorp was fined AUD370,417 by the Melbourne Magistrates’ Court for failing to prevent a minor from gambling at multiple Victorian venues, and for inadequate supervision of its electronic betting terminals.

On 23 August 2024, the VGCCC fined the Tabcorp entity licensed to operate in Victoria, AUD4.6 million for several instances of non-compliance with its regulatory obligations under its licence and the code of conduct on responsible gambling. The non-compliance related to a failure to adequately train staff in responsible gambling, and to the sending of direct marketing material to a customer who had opted out of receiving such material.

The VGCCC fined Crown Melbourne AUD2 million on 15 October 2024 for allowing individuals who were self-excluded from gambling to place bets at the casino. The breaches occurred between October 2023 and May 2024. The VGCCC also directed Crown Melbourne to engage an independent expert to review and make recommendations for improving the management of the self-exclusion programme of the casino.

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, following the consultation processes, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (the “AML/CTF Bill”) was introduced into Federal parliament (see 8.3 Recent or Forthcoming Changes).

Gambling (excluding the provision of a lottery service) is considered a “designated service” under the AML/CTF Act. As a result, licensed operators are considered “reporting entities” and are subject to obligations under the AML/CTF Laws. These include:

• enrolling with AUSTRAC;
• preparing and implementing an AML/CTF programme;
• adopting risk-based systems and controls for mitigating and managing money-laundering and terrorism-financing risks associated with the designated service, including adopting know-your-customer (KYC) requirements;
• reporting suspicious transactions, and certain business activities and transactions;
• keeping records;
• submitting annual reports to AUSTRAC; and
• staff training.

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.

The AML/CTF Act was amended to allow for parties to rely on 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.

There have been two rounds of consultation regarding the modernisation of Australia’s AML/CTF regime. The most recent consultation closed on 13 June 2024. The purpose of the consultation was to consider what needs to be addressed and implemented to modernise and simplify Australia’s AML/CTF regime, 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).

Following the consultation processes, the AML/CTF Bill was introduced into Federal parliament on 11 September 2024.

The AML/CTF Bill has three main objectives:

• to extend the AML/CTF regime to additional services provided by Tranche 2 entities (eg, lawyers, accountants, trust and company service providers, real estate professionals, and dealers in precious metals and stones);
• to modernise the regulation of virtual assets and payments technology; and
• to simplify and clarify the AML/CTF regime in order to increase flexibility, reduce regulatory impacts, and support businesses to prevent and detect financial crime.

The AML/CTF Bill also introduces material amendments relating to AML/CTF programme requirements, risk assessment requirements, internal AML/CTF policies, initial/ongoing customer due diligence processes, and increases AUSTRAC’s investigative powers.

The majority of the amendments are proposed to commence on 31 March 2026.

As at the date of writing this Chapter, the AML/CTF Bill has passed in both houses of the Federal parliament and is awaiting Royal Assent.

AUSTRAC has remained active in its review and enforcement of gambling operators. It has concluded Federal Court of Australia proceedings and other enforcement action and reviews are ongoing (see 1.1 Current Outlook and Recent Changes).

The trial using cashless methods to play on gaming machines in clubs in NSW (see 7.3 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.

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

• federal – ACMA, and the Australian Competition & Consumer Commission;
• Australian Capital Territory – ACT Gambling and Racing Commission;
• New South Wales – Liquor & Gaming NSW;
• Northern Territory – NTRWC;
• 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 (NSW) (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.

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:

• “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?”

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

Pure branding (ie, the display of a logo) is not usually considered advertising, but this will depend on context.

The South Australian Authorised Betting Operations Gambling Code of Practice came into effect on 31 March 2023. The Code of Practice applies to all South Australian licensed bookmakers, and to registered interstate betting operators. It contains 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 AUD11,000 for an individual and AUD110,000 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 has been 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, 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. 

On 12 August 2024, PlayUp Interactive was ordered by the NSW Local Court to pay a fine of AUD586,000 for offering free bets and inducements to open a betting account.

In June 2024, the ACMA announced that it had issued a remedial direction to Hubbl Pty Limited (Hubbl) Kayo due to the presentation of gambling advertisement during live sports events outside the permitted times. If Hubbl fails to comply with the ACMA’s remedial direction, it may be ordered by the Federal Court to pay penalties of up to AUD626,000 per day. 

Following the recommendations of the Federal Parliamentary Committee report “You win some, you lose more”, which included a complete ban on online wagering advertising, the industry is awaiting the Federal government’s position on whether a ban or further restrictions will be implemented (see 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 NSW, 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 to or approval of the relevant gambling regulator for 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 inquiries into the suitability of persons associated with licensed land-based casino operators across Australia has introduced a heightened threshold to satisfy gambling regulators that individuals are suitable to hold a licence and/or be associated with the licensed company. As a result, gambling regulators conduct more in-depth probity and suitability reviews of individuals associated with a licensed operator.

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 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 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 were 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).

Amendments were made to relevant laws over the last few years to substantially increase the penalties that regulators could issue to licensees for breaches of the law. These amendments were made following the casino inquiries. 

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 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 (NSW), 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 revenue; and
2. currently capped at AUD1.410 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 – 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.

The NSW government is considering whether it is warranted to increase the point of consumption tax.

A personal licence may be required at a state and territory level, for example, in respect of gambling operators/venues which are in the land-based market, for – eg, gaming machine technician licences.

A personal licence is required in the Northern Territory for individuals that are deemed key individuals in relation to the online sports bookmaker licence. The key person licences are required by:

• directors or executive officers of the licensed operator; and
• individuals in managerial positions or who have a managerial function in the business of the licensed operator and has a significant influence over the licensee’s business.

A key person licence is granted for a maximum period of five years and may be renewed.

An individual must be approved by the NTRWC to be appointed as the nominee of the licensed sports bookmaker and whose role is to represent the licensee.

Refer to 4.7 Application Requirements in relation to requirements of individuals that are required to undergo a probity review to be associated with a licensed operator.

The application process for a personal licence requires the completion of an application form providing responses to personal details. The details that are required for a personal licence (eg, a key person licence issued by the NTRWC) are less onerous than the details required in an application relating to a probity review to be associated with the ownership or directorship of a licensed operator. The application process is likely to also require that fingerprinting is provided for the purposes of conducting background checks and providing police certificates.

Refer to 4.7 Application Requirements in relation to requirements of individuals that are required to undergo a probity review to be associated with a licensed operator.

A key person licence application fee is currently AUD211.50. The process to be granted the key person licence is usually completed in approximately two months. 

There are usually no annual fees associated with personal licences; however, renewal of the personal licence will require the payment of a fee, eg, the key person licence issued by the NTRWC requires the payment of the same amount as if applying for a new licence (currently AUD211.50).

The ongoing requirements generally associated with a personal licence is that the individual remains suitable to hold the licence and to notify the regulator if situations arise which could affect the individual’s suitability.

A personal licence may include conditions with which the individual must comply. 

Regulators have the power to suspend or cancel a personal licence granted to an individual if the person is no longer deemed to be suitable or fit and proper to hold the licence.

With the coming into effect of the New NT Wagering Laws, the term of key person licences was extended from being for a period of one year (renewable annually) up to a maximum period of five years.