Australia has always been fond of gambling. From horse racing tracks to modern casinos and pubs filled with pokies, gambling infects the Australian culture. But this passion has produced one of the most advanced and highly controlled gambling environments globally. While some activities are legal and regulated, others fall in between or are illegal. To assess the manner in which Australians gamble today, there is a need to look at the gambling laws of the country, its differences from state to state, and how the rise of online gambling has changed things.
In recent years, there has been much debate regarding the role of pokies in Australian society, as they remain among the most popular means of entertainment while also being responsible for problem gambling. For example, readwrite.com highlights Australia’s pokies scene as among the most developed in the world, and therefore it’s an economic driver. Understanding how pokies, bookies, casinos, and websites are controlled makes it clearer how Australians interact with gambling today.
A Brief History of Gambling in Australia
The origins of gambling in Australia date back to the early colonial days, with horse racing being the earliest organized form of gambling. Racing gained popularity and set the stage for the rich betting tradition that endures to this day. State governments began to introduce lotteries and permit betting agencies in the mid-20th century.
The introduction of pokies in the 1950s was a turning point. Initially, they were limited in number, but soon they spread like wildfire and became an integral part of pubs, clubs, and casinos. In the 1990s, Australia had the highest percentage of slot machines per capita in the world. Making it the place to be for those who enjoy slots.
Who Regulates Gambling in Australia?
There is not a single gambling act in Australia at the national level. Federal and state governments share the regulation. States and territories primarily regulate land-based gambling, e.g., pokies, casinos, and bookmaking stores. Each state has its own commission, e.g., the Victorian Gambling and Casino Control Commission or Liquor & Gaming NSW, which sets the regulations and enforces them.
There is more jurisdiction from the federal government in regards to online gambling. When internet gambling opened up in the 1990s, it was realised that states were not enough to regulate this new industry. Therefore, the Interactive Gambling Act (IGA) was introduced in 2001, putting strict controls on online gambling operations available to Australians.
This two-level system has the effect that Australians are often subject to different rules depending on their location and whether they gamble on or off the Internet.
The Interactive Gambling Act
The Interactive Gambling Act 2001 is the most prominent federal legislation relating to online gambling in Australia. Its primary function was to protect Australians from the hazards of Internet gambling and prevent the regulated market from being entered by unregulated operators.
The IGA prevents businesses from offering certain types of online games to Australians. Online poker, casinos, and slots are prohibited. The legislation does, however, allow sports betting and racing event wagering if the provider is approved by an Australian regulator. The IGA also prohibits in-play betting, or live betting on a sporting game while it is happening.
Notably, the IGA does not outlaw access to offshore gambling sites. This has left a loophole that has seen many Australians resort to foreign-based operators without a local license. Despite efforts by the government to curb the flow using payment blocking and cooperation with internet service providers, there remains the issue of enforcement.
Pokies: Australia's Most Popular Gamble
No examination of gambling in Australia would be complete without mentioning pokies. They are the most widely used form of gambling by far, with millions of Australians using them regularly. Pokies are not only located in casinos but also at local pubs and clubs throughout the country.
The economic and social contribution of pokies is enormous. They are worth billions of dollars for state governments to fund community work and government services.
The states have taken different approaches to regulation. In Tasmania, there are fewer pokies than in New South Wales, which has the country's highest concentration of pokies. Some states have added features such as minimum max bets, breaks, and time limits. However, pokies remain firmly embedded in Australian culture, and their future remains contentious.
Casinos in Australia
Australia boasts many large casinos like Crown Melbourne and The Star Sydney. The casinos are strictly regulated and serve as entertainment hubs that attract locals and foreigners. Casinos can offer table games, electronic games, and other forms of wagering.
Casino licenses are strictly controlled and made subject to conditions designed to keep both players and operators safe. Casinos, for example, must employ staff trained to identify problem gambling, provide information on services available for help, and implement self-exclusion programs for individuals wishing to exclude themselves from gambling.
The recent past also saw increased scrutiny of the operation of casinos, particularly against money laundering concerns. The Royal Commissions and public hearings identified gaps in the regulatory framework, leading to changes and stricter regulatory conditions.
Sports Betting and Racing
Australian sports betting and horse racing betting have been an integral part of Australian society for more than a century. Unlike online poker or casinos, sports betting is entirely legal and widespread across the country through both physical bookies and licensed online websites.
Australians can place wagers on numerous sporting events, ranging from rugby and cricket to international competitions like the English Premier League. Horse racing is one of the most prevalent betting habits, with high-profile events like the Melbourne Cup recording millions of bets every year.
Sport betting operators are required to be licensed within one or more Australian states or territories. This means compliance with best responsible gambling practices, including the provision of deposit limits, self-exclusion tools, and advertising limits. Despite these measures, there have been concerning examples of the ubiquity of sports betting promotion.
Online Gambling and Offshore Operators
Although the Interactive Gambling Act prohibits what can be offered domestically, online betting from overseas is common in Australia. Foreign sites are commonly accessed by Australians to bet on online slots, poker, and casino games not offered by licensed local sites.
The government has attempted to stifle this with reforms to the IGA in 2017, which augmented fines for illegal operators and authorized regulators to shut down illegal websites. Payment facilitators have also been brought in to freeze transactions on blacklisted sites. Nevertheless, the global availability of the internet renders total enforcement virtually impossible, and offshore services continue to be accessed by Australians.
Advertising and Promotion Rules
Advertising is also regulated. Betting operators are required to conduct their business within strict parameters to guarantee that promotions do not target children or mislead consumers. For instance, advertisements cannot suggest that gambling is the solution to money problems or that it is a necessity for happiness and success.
Advertising of sports betting has been the most controversial, notably on live sporting event broadcasts. There have been measures implemented to limit exposure of the adverts to children, for example, a ban at certain times of the day.
The Debate Over Gambling Reform
Gambling law in Australia is under transformation, and reform is debated continually. Advocates of stricter controls argue that Australia boasts one of the world's highest per capita gambling loss rates and that stricter controls are needed to protect vulnerable segments of citizens.
As opposed to this, the gaming industry is keen to point to the employment and revenue it generates, and people's freedom to choose what they do with their money. Governments are then confronted with balancing these opposing pressures against fixing the harms of problem gambling.
The Future of Gambling in Australia
In the future, Australian gambling will likely be regulated further on websites. As new technology and new games emerge, legislatures will need to stay current to ensure Australians are protected. A national self-exclusion register for online gambling is already in the works, which would allow gamblers to exclude themselves from all licensed sites at the same time.
Increasing pressure is also being placed on better regulation of advertising and stronger consumer protection. While gambling continues so high in Australian life, the debate about how best to regulate it will remain central to public policy.
