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Online casinos have become a popular form of entertainment worldwide, but in Australia, their legality is heavily restricted under stringent gambling laws designed to minimise harm and regulate online gambling activities.
This blog examines the legality of online casinos in Australia including the federal prohibition on online interactive gambling services, state and territory approved exceptions and the legality of overseas based online casino operators.
Contact our criminal lawyers Sydney team to book a consult for more on this topic.
Is Online Casino Legal in Australia?
You cannot play online casino in Australia. Many forms of online gambling services are outlawed federally in Australia under section 5 of the Interactive Gambling Act 2001 (Cth) (‘IGA’). This act outlines a broad prohibition against ‘interactive gambling services’ when delivered via digital communication methods.
Prohibited ‘interactive gambling services’ include a wide range of gambling activities facilitated by digital platforms, including online casinos, online poker, and live sports betting. Generally, any interactive game provided online for some financial benefit is likely to fit within the federal prohibition. Online Casino is therefore illegal in Australia.
Why are Online Casinos Banned in Australia?
Online casinos are banned in Australia due to concerns around losing your money and money laundering. Any online gambling in Australia must be licensed and registered which ensures that it is bound by Australian laws and protections. This also ensures that you have an avenue via Australian laws in the event of a dispute with the service provider.
You can complain to the Australian Communications and Media Authority (ACMA) if you find believe an online website is offering illegal gambling services. You can do this without disclosing your identity.
When is Online Gambling Legal in Australia?
Nevertheless, the federal prohibition also includes a number of exceptions. These include:
- Online sports betting, including betting on sporting games as well as horse racing and greyhound racing, if the betting organisation holds a license from the relevant state or territory betting authority and does not involve live in-play betting (placing bets during an event).
- Online lotteries, including international lottery betting services, if they are approved by a relevant state or territory lottery authority.
These exceptions demonstrate that while the federal government enforces strict prohibitions on interactive gambling services, it allows regulated activities under specific conditions.
Offences and Penalties for Online Gambling in Australia
State and territory laws complement the federal framework by regulating authorised online gambling services within their jurisdictions.
Most jurisdictions focus their regulation on the authorisation of providers for online and offline betting and lottery services.
The Northern Territory is unique in that it also has an established scheme for corporate bookmakers, issuing licenses for general online sports betting, including fantasy sports betting, which are not covered in other jurisdictions.
All state and territory unlawful gambling schemes include criminal penalties for non-compliance.
For example, in NSW, the Unlawful Gambling Act 1998 (NSW) outline the rules regarding lawful gambling in the state. Section 8 of the Unlawful Gambling Act 1998 (NSW) makes it an offence if:
- A person places a bet on any horse race, harness race, or greyhound race held in Australia if the bet is made via telephone, the internet, subscription TV, or any other online communication system; and
- The person knows or ought reasonably to know that the bet is placed with someone who is not a legal bookmaker or authorised under state or territory law to conduct totalizator betting.
The maximum penalty for this offence is 50 penalty units and/or 12 months’ imprisonment.
A ‘legal bookmaker’ is defined as a licensed bookmaker approved by Liquor & Gaming NSW or by any other relevant state or territory legal authority. TAB Limited operates a unique position in online betting in the state in that it is licensed under the Totalizator Act 1997 (NSW) to conduct totalizator and fixed odds wagering. TAB Limited is the exclusive provider of off-course retail betting services in NSW.
In regard to lotteries in NSW, the Public Lotteries Act 1996 requires the provider of lottery, including an online lottery, to be authorised if the total prize value exceeds $30,000. A lottery can be authorised by making an application to NSW Fair Trading. Under section 6 of the Act, it is an offence to conduct a public lottery without lawful authority.
The penalties for organising an unlawful lottery include 50 penalty units and/or 12 month imprisonment for a first offence, or 100 penalty units and/or 2 years imprisonment for a second or subsequent offence.
Is Overseas Online Gambling Legal in Australia?
Overseas-based online casinos that target Australian residents are explicitly prohibited under the IGA, with significant civil penalties attached.
Under section 15 of the Act it is an offence for a person to intentionally provide a prohibited interactive gambling service with an Australian-customer link. This offence carries a maximum penalty of 5000 penalty units, applicable each day the unlawful service is provided.
Further, under section 15AA of the Act it is an offence to provide a regulated interactive gambling service with an Australian-customer link without holding a valid license issued under the law of a state or territory that authorises that service. This offence also carries a maximum penalty of 5000 penalty units, applicable each day the unlawful service is provided.
For both offences, a defence exists if the provider can demonstrate that they did not know and could not reasonably have determined that the service had an Australian-customer link, provided they took reasonable steps such as informing customers of Australian legal restrictions and verifying their location.
The Australian Communications and Media Authority (ACMA) is the primary enforcement body responsible for monitoring compliance and addressing violations of the IGA by overseas providers. ACMA has the power to block illegal offshore gambling websites, impose civil penalties, and notify border protection agencies to disrupt the activities of offending operators. It also collaborates with international regulators to combat illegal gambling operations.
Despite these enforcement measures, many overseas operators continue to target Australian players, often exploiting legal loopholes or operating from jurisdictions with lax regulatory oversight.
By Jarryd Bartle and Jimmy Singh.
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