Australia’s illegal offshore gambling market doubles to AU$3.9 billion

• Australia loses AU$3.9 billion annually to illegal offshore gambling sites, more than doubling since 2019.
• Offshore operators now account for 36% of the online gambling market, potentially risking nearly AU$2 billion in lost government revenue by 2029.
• Responsible Wagering Australia calls for national coordination to block illegal sites and protect consumers, as well as local industry funding.

Australia’s illegal offshore gambling market has expanded significantly, with annual losses reaching AU$3.9 billion in 2025, a figure more than twice the size recorded in 2019.

The latest report commissioned by Responsible Wagering Australia (RWA) and produced by H2 Gambling Capital highlights the urgent need for enhanced regulatory action across the country. Projections suggest these losses could exceed AU$5 billion by 2029 if the current trajectory continues.

Growth and financial consequences

According to the RWA report, offshore gambling platforms now account for approximately 36% of all online gambling activity in Australia. This rapid growth outside the licensed market is linked to substantial revenue losses for government and sporting bodies.

The report estimates that almost AU$2 billion in tax revenue could be lost to offshore operators over the next five years, alongside nearly AU$800 million in fees traditionally payable to Australian sports and racing sectors.

By 2029, annual losses from these streams are projected to reach AU$585 million, including AU$135 million from racing and AU$40 million from sport.

Risks to consumers and regulatory challenges

Consumers face considerable risks when engaging with unregulated offshore sites, which do not offer the protections required of Australian-licensed operators.

According to RWA, users of these platforms have no assurance of receiving their winnings and limited options for dispute resolution.

The CEO of Responsible Wagering Australia, Kai Cantwell, described illegal platforms as operating in “a regulatory wild west where there are no limits, no oversight, no guarantee you’ll ever see your winnings and no avenues for recourse when something goes wrong.”

He said:

“These operations are often controlled by organised criminal networks in tax and regulatory safe havens, exploiting loopholes to launder money and dodge sanctions.”

The report also notes that many players bypass Australia’s national self-exclusion scheme, BetStop, by using offshore sites, undermining its effectiveness in responsible gambling efforts. Roughly half of Australians who gambled offshore were registered with BetStop.

“Australia’s world-leading consumer protections are only effective if people stay within the system, and right now, it’s too easy to bypass them offshore with a few clicks,” Mr Cantwell said.

Drivers behind offshore gambling

Key factors encouraging Australians to use illegal offshore platforms include access to banned products, more attractive pricing, and aggressive promotions.

The report found 48% of offshore gamblers cited better odds as their primary motivation, with 44% attracted by bonuses and promotions. Live in-play betting emerged as the most influential factor driving offshore wagering.

Offshore operators employ social media influencers and affiliate marketing to appear legitimate, causing confusion about which sites are licensed. Nearly half of the surveyed users could not reliably identify legal platforms.

Proposed measures

RWA supports broad actions recommended by H2 Gambling Capital to strengthen the onshore market and clamp down on illegal operators. Proposed measures encompass the creation of a National Illegal Gambling Blacklist, expanded powers to block internet service providers (ISPs) and apps, and mandatory payment blocking by banking institutions.

The report also advocates for better integration of BetStop with payment monitoring services, stricter crypto exchange guidelines, and international enforcement agreements with key jurisdictions.

Kai Cantwell stated:

“A strong, consistent national framework will protect Australians, preserve funding for sport and racing, and ensure initiatives like BetStop aren’t undermined by unregulated offshore sites.”

He emphasised that regulatory decisions on advertising, product availability, and taxation will influence the future balance between licensed and offshore wagering markets in Australia.

This report highlights the escalating impact of offshore gambling on Australia’s economy, consumer safety, and regulatory framework, urging coordinated national and international responses to protect consumers and preserve the integrity of the domestic gambling market.

About Responsible Wagering Australia

RWA is an independent peak-body for Australian licensed wagering service providers. Members include Australia’s leading bookmakers, including bet365, Picklebet, PointsBet, Sportsbet, Betfair and Unibet.

RWA and its members are committed to ensuring that Australia has the best conducted, socially responsible wagering industry in the world. 

For more information, please visit the Responsible Wagering Australia website.

Source: Responsible Wagering Australia report, H2 Gambling Capital.​