Australia Among Top 5 Social Casino Markets + Scott Wharton Steps Down as Star Sydney CEO

AU iGaming News! Australia is among the top 5 social casino markets and Star Sydney’s CEO resigned after just 8 months to become CEO of Smartgroup! (Image courtesy of Dan Freeman at unsplash.com)

A recent report by the Australian Communications and Media Authority (ACMA) has shown that Australia is among the top 5 social casino markets in terms of consumer spending.

That is based on figures from the first half of last year (2022). The “Snapshot of Social Casinos” report was compiled to establish consumer behaviour in a rapidly growing market in many countries, including Australia.

The popularity of social casinos in Australia is understandable. The only online gambling activity regulated is sports betting. However, there is no online casino licensing service for gambling operators to legally offer iGaming services to Aussie citizens.

Instead, players can access online slots, table games, video poker, and more without wagering any real cash. They use free virtual chips as their currency. It is not possible to exchange those chips for real cash, so essentially this is gambling with nothing but worthless chips.

That said, players can make in-game purchases for more chips when they run out. This requires money, but still, winnings, even from virtual chips bought are not available to withdraw into Australian Dollars. As this activity is not considered gambling, social casinos are not regulated under Australia’s Interactive Gambling Act 2001.

Such is the growing popularity of social casinos, it is believed global revenues will grow at a rate of 5% per year until 2025. Social Casino gaming enjoyed significant growth during the years, especially in 2020, when the pandemic hit. The following year did not match the growth seen in 2020, but many who were stuck at home during the lockdown still enjoyed social casino gaming. When pandemic restrictions loosened, the social casino market suffered a big decrease in profit, but it is still a market that is growing, nonetheless.

The report estimates that more than 85 million people worldwide play at social casinos. It is particularly popular among older men and women. The largest social casino market is the United States which has a 60% market share. China and Taiwan complete the top 3 while Australia and Canada make up the full top 5.

Like playing for free? A similar free to play feature is also available at crypto and real money iGaming sites via demo play casino games. Alternatively, players can also seek out the best online pokies no deposit bonus deals offering bonus money in AUD or free spins without any deposit needed. Players can then convert the bonus into withdrawal cash. However, these are overseas platforms, and the ACMA often forces ISPs to blacklist these casinos.

Scott Wharton Resigns as CEO of Star Sydney – NSW Regulator Calls for Quick Replacement

Just eight months into his tenure, Scott Wharton has stepped down as CEO of Star Sydney to take on a A$1 million a year role as CEO of Smartgroup. Wharton will remain in his current position until April 28 and will start his new role in July.

This is not good timing for The Star Entertainment Group (SEG), which has endured a tough time in recent years. Last year, the Star Entertainment Group was at the centre of a controversy that rocked the gambling industry in Australia. The group had its Sydney license suspended and was fined A$100 million by the NSWICC (New South Wales Independent Casino Commission) after an investigation found widespread money laundering failures. Due to the ongoing regulatory changes and fines, the Group has reported losses of A$1 billion for the first half of this financial year.

That scandal has placed the gambling industry under a microscope and has led to the government considering making major changes to gambling regulations. In particular, if Labor remains in power, Australia’s Gambling Reform will aim to reduce money laundering in the industry by making all pokies, gambling cabinets, and other gambling machines, cashless by 2028.

The government has already implemented harsher gambling advertising laws while it is considering adding responsible gambling taglines and cracking down on offshore online casinos offering services to Australian citizens.

NSW Warns Star Entertainment to Replace Wharton Quickly

Phillip Crawford, the Independent Casino Commission’s Chief Commissioner, has called on the Star Entertainment Group to act swiftly in its search for a new CEO. Crawford believes the group needs to continue the good momentum it has made reforming its governance arrangements during Wharton’s tenure.

His resignation came at a time when 11 former Star officials were in court defending allegations they had failed shareholders by failing to prevent money laundering at the Star City Casino. They each deny the allegations.