Watchdog warns offshore gambling could cost Australia $3bn

Independent peak body Responsible Wagering Australia has published a new report in which the organization has outlined that the offshore gambling market in Australia could cost the country’s economy an estimated $3bn in lost taxes over the next five years.

The report is part of the ongoing initiative by the body to ensure that consumers are protected and that lawmakers are aware of the unique challenges the offshore gambling industry continues to pose.

Despite a strict response from the Australian Communications and Media Authority (ACMA), which has banned hundreds of illegal websites, targeting of Australian consumers by offshore entities continues. The Australia Offshore Wagering Market Analysis 2023 Report tries to offer some insight into what the present challenges are and how the country can move past them.

The offshore market as of right now is worth $1.1bn or 15% of the total gambling market, the organization warns. The report was conducted on behalf of the peak body by H2 Gambling Capital, an established data analytics firm, that argues that between 2022 and 2027, racing and sports bodies could be shorthanded by $1.6bn in product fees all because of illegal gambling markets.

Another $1.3bn would also be lost due to unpaid and uncollected taxes. This, the report explains, is because offshore entities are not accountable to the government nor subject to its taxation.

Although they target Australian citizens, they have no obligation under any license to pay taxes or fees in the country. Worse, they stilt the playing field for licensed and paying operators that suffer because they have to compete with offshore entities that have an unfair advantage.

Even though ACMA has been actively cracking down on illegal gambling websites, the number of such operators still running and targeting the country has increased. For example, there are now 84 sites known to be focusing on offering offshore gambling to Australians.

This has had a number of negative implications besides the ones already outlined. For example, it has made it much harder for consumers to differentiate between regulated and non-regulated market offers. This failure to delineate is just a part of the issue, as some consumers may be actively choosing to play offshore.

Responsible Wagering Australia CEO Kai Cantwell was pleased with the report and its findings, but also sounded an alarm that new regulation is needed to ensure that the tide of illegal offshore gambling is stemmed.

"Additionally, failure to maintain a sustainably regulated sports betting market could result in a significant loss of economic benefits to the Australian economy, as well as to the sporting, racing, and broadcasting industries," he argued, adding that his organization and members were now looking forward to the results of the House of Representatives Inquiry into Online Gambling.

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