Australia Gaming Billion AUD Losses – Lost tax & fees through offshore competitors!

Australia reports 3 billion AUD losses to overseas gambling sites which have doubled to take 15% of the country’s gambling market… (Image by wal_172619 from Pixabay)

It is a topic I regularly bring up when covering the Australian online gambling market. Finally, now there is some confirmation that Australia is going overboard with some of its online gambling rules.

Thanks to Responsible Wagering Australia (RWA), responsible for monitoring the situation, a loss of AUD 3 billion to overseas casinos has been highlighted.

The report was carried out by H2 Gambling Capital, an independent research expert, and predicts that the figure touted is from lost taxes and product fees from now until 2027.

That’s a ridiculous amount! Considering NSW is asking to raise taxes from 10% to 15% for gambling and the rising debt to GDP in the country, it is clear that money would go a long way to beefing up Australia’s economy.

In other words, when we are talking 30,000,000,000 AUD (yes, that many zeros) the penny has dropped.

That’s just taxes by the way. There is also the money going offshore that would not be taxed into online gambling sites overseas. And shockingly, I still don’t see the inclusion of the online casino Australia real money gambling platforms mentioned when the topic comes to light. These sites continue to pop up and attract millions of players from down under, and they offer casino + sports – I mean does someone need to spell it out for these guys?

Incidentally, the government’s only tactic is to ban these casinos using an ISP enforcement protocol. I mean come on…! It seems those in control of stemming black market Aussie casinos do not understand the nature of casino players. If people want to exercise their freedom to play real money casino games, something the governments should have no right to prevent, then they will. It is as simple as that.

The Stats Laid Out for All To See: By 2027, unlawful wagering may siphon off billions in product fees and taxes, sounding the alarm for the authorities to act proactively and stave off impending losses.

Data-Driven Decision-Making: A Call for Sensible Regulations

The Australia Offshore Wagering Market Analysis 2023 Report paints a grim picture, and it means racing and other sports will bear the brunt of any losses. And oddly enough looking at these figures, I do not see online casino gambling included, so let’s increase that AUD 3 billion estimates.

Here are the estimate losses on sports betting alone by 2027:

• AUD 1.6 billion in product fees
• AUD 1.3 billion in taxes

The newly appointed CEO of Responsible Wagering Australia (RWA), Kai Cantwell, underscores the significance of data-driven regulations. He emphasises the necessity of considering diverse views – those of the industry, sporting bodies, and broadcasters alike.

His plea is simple but neglects one thing: Future reforms should be fair. The aim would be to dissuade Australian gamblers from venturing into the offshore market where protections are scant. I still don’t see the casino + sports penny-dropping here. People want both! Why not just learn from the UK rules where there are declining problem gambling rates?

The Report: Plea for Fair Licensing, Informed Advertising & Responsible Gambling Rules

H2 Gambling Capital for Responsible Wagering Australia sheds light on the magnitude of the offshore market problem.

Currently, offshore operators account for around 15% of the Aussie online gambling market. The general consensus is that they are exploiting tax and fee loopholes in order to offer competitive pricing and bonuses to Australians, which local operators cannot match as obviously they are paying taxes and fees.

In total, there are 6 million Aussies that partake in gambling with a large number heading over to these off-shot gambling sites. The number has doubled in the last four years due to the aggressive targeting of locals, causing more than AUD 1.1 billion to leak offshore.

There are also pleas for regulatory reform that benefits licensed operators. It also warns that once overseas online gambling sites become rooted; they will become difficult to dislodge. But let’s be honest, the current rules have already allowed black market casinos to become ‘rooted’.

The document also delves into advertising, suggesting that if legal operators lose the advertising battle to offshore rivals, the consequences could be dire. As a result, the current regime to quell gambling advertising could backfire as players may not be able to tell whether a site is an offshore or one of the Aussie gambling brands operating under the country’s licensing.

My Opinion: Well, if you stay up to date with the Casino Plus Bonus Australian casino news gossip releases regularly in our news section, you’ll know our thoughts. The only solution is to regulate online casinos, allow sports books to add these games and take an example from the UKGC and rules used by other regulatory authorities.