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Are Online Casinos Legal in Australia?

Are Online Casinos Legal in Australia?

The article was written with the help of an authoritative source free-onlinepokies.com – a startup company from Australia focused on free pokies, mainly in Australia, New Zealand, and Canada.

Australia is famous for many things, from kangaroos to desert expanses with searing heat. The country down under also stands out as the leading gambling nation globally, beating even the United Kingdom. Gambling has been Australian culture since the 17th and 18th centuries when European settlers moved to the region.

The industry started with horse racing events that evolved to accommodate pokies, sports betting, table games, and casual sets. While the activity has been around for a long time, it was not recognized legally until 1973, when the first license was awarded to West Point Hotel Casino, a Tasmanian establishment. Hundreds of gambling destinations have popped up across the country ever since to make it a standard leisure activity nationwide.

When it comes to location-based gambling laws, few countries lack ambiguity, and Australia is one. On the other hand, online gambling changes the game since it exists in a virtual realm that makes it hard to oversee their services. Also, the platform is constantly evolving to offer new and exciting ventures that challenge those of the past. Australian online gambling laws are challenging to understand at first glance, but they can easily be discerned once you take the time to know them.

The evolution of online gambling laws

For most of Australia’s gambling history, regulating the industry has been left in the hands of the country’s eight individual states. The widespread success of the sector led to the states’ heavy reliance on generated revenue. However, a significant rise in gambling among the citizens raised the Commonwealth’s concerns about the new venture’s risks and its long-term effects. Therefore, the federal government swooped in to take control of the industry.

Senators Richard Alston and Jocelyn Newman were the first government officials to sound the alarm on the gambling industry. They tabled a bill in 2000 that called for the vetting of the sector and identifying its community welfare and revenue collection consequences. Some of the touched-on areas included:

  • The protection of Australian players against rogue gambling practices.
  • The limitation of the Australian casinos’ business expansion.
  • The new concept of internet gambling and how it can be supervised.
  • The repercussions of gambling addiction on family units and communities. 

The government saw that, if left unchecked, the industry would balloon into a health crisis and sought to put regulatory mechanisms in place that controlled the provided services. The tabled bill, the Interactive Gambling Act, was later passed in 2001. To date, it carries the most significant impact in limiting Australian gambling.

The Interactive Gambling Act of 2001 banned the provision of interactive gambling services to Australian residents. This ban included slots, table games, and other casino sets where skill cannot be applied to win. Although online gambling dens were technically off-limits for Aussies, there were plenty of online casinos at players’ disposal. The law was easy to work around since it did not prohibit gamblers from seeking casino services. Instead, they only applied to the gambling operators. Also, the government was not keen on the law’s application, so no one was looking over their shoulder in fear of being caught.

The Interactive Gambling Act stayed intact until 2016 when it was reviewed to loosen up its restrictions. Also, it handed back the regulation of gambling services to individual states with a touch of federal input. The new laws allow players to seek online gambling services, but only from casinos that hold valid licenses and seals of approval. Each state has its regulatory authority responsible for gambling policy, licensing, and compliance and they are:

StateRegulatory body
VictoriaThe Victorian Commission of Liquor and Gambling Regulation
New South WalesLiquor and Gaming New South Wales
QueenslandThe Queensland Office of Liquor and Gaming Regulation
South AustraliaConsumer and Business Services
Australian Capital TerritoryThe Gambling and Racing Commission
TasmaniaThe Tasmanian Liquor and Gaming Commission
Western AustraliaThe Western Australian Department of Racing, Gaming and Liquor
Northern TerritoryThe NTRC

The Department of Social Services exerts the federal powers granted by the Australian Constitution over gambling. The government is allowed to regulate telecommunications, money, and trade between states and territories. It uses these powers to place anti-money laundering, counter-terrorism financing, and consumer and competition protection. With these laws in place, online casinos are expected to:

  • Include spending limit settings to let players cap the amount they can spend gambling.
  • Ban the provision of loans that promote problem gambling and debt.
  • Include responsible gambling policies that educate gamers on the dangers of pathological gambling.

Online casinos are also barred from advertising their services on mass media, including print, hoardings, and billboards. Exceptions apply to incidental or accidental advertising or imported publication adverts only. Any individual found breaking these laws is liable to a fine of AUD 1.6 million, and corporate entities have to pay up to AUD 8.3 million. Internet service providers cannot be criminalized for the transmission of illegal gambling content by third-party users. The Australian Communications and Media Authority handles any complaints on online gambling services.

Gambling crisis

While the Australian government has measures to regulate the gambling industry, it is still the source of the country’s most significant mental health crises. More than 80% of Australians above eighteen years have partaken in gambling at some point in their lives. This is the highest gambling rate globally, resulting in the countrywide public health issue of gambling addiction. Every year, it is estimated that residents spend over AUD 191 million on gambling.

While this figure impacts revenue generation positively, it comes at the cost of an AUD 227 million loss by players. This is the equivalent of every Aussie above legal gambling age spending 1200 dollars in online casinos. The regulations in place are meant to combat problem gambling’s prevalence, but they have yet to work at the rate that problem gambling is spreading across the nation.

Verdict

Australian online gambling laws are hardly complicated, especially the ones that apply to players. All that is demanded is that gambling services are accessed from legal gambling dens, and responsible measures are used to avoid addiction.

Read more: Best iGaming Aggregators

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