Online gambling in Australia: business features
It is believed that the people of Australia are the most gamblers in the world. This is indirectly indicated by the amount spent by Australians. On average, each local player spends on rates and online casinos 1300 dollars a year. And these players, given the size of the population of the continent, the country is a lot. About 80% of adult Australians play gambling at least once a year. Almost 7 million Australians – about 39% of Australia’s adult population – regularly spend money on at least one type of gambling every month. The average age of an active gambler is 39 years. They are usually men with an annual income of around 100,000 dollars. All this makes the region attractive for online business.
Australia accounts for only 0.3% of the world’s population. The country is home to 6% of the world’s standard slot machines and 18% of poker machines. As for the number of machines per person, Australia ranks alongside the casino countries: Monaco, Macau and the Caribbean islands.
Since the second decade of the current millennium, the Australian gambling market has grown rapidly. Thus, if in 2012 gambling companies spent 45 million dollars to promote their products and services, then in a couple of years this number rose to 147 million dollars (data Nielsen AdEx). In terms of advertising costs, gambling surpassed even mobile operators.
But, since 2015, gambling regulators began to impose strict restrictions that complicate the work of betting companies. They were the first to be banned from Live betting. According to the regulator, the use of this type of rate leaves a lot of space for tax evasion. And the budget revenues from gambling business taxation were and still are a significant part of the country’s income.
Despite this, in 2017, the Australian Senate approved a bill on a complete ban on iGaming. It was expected that companies would only gain access to the local market once they had obtained a local license. But the necessary regulatory framework did not yet exist when the bill was passed. As a result, several major operators, including PokerStars, 888poker, 32red and Gaming Innovation, decided to leave Australia.
How to get a license for online casinos in Australia
A large number of requirements are imposed on those wishing to obtain a local license. From cooperation with local law enforcement agencies and maximum security for financial transactions to employee accreditation.
Licensed casinos pay turnover tax and net profit tax. Also, there are regular license fees. Conditions may vary depending on the state.
Getting a local license from outside the country is extremely difficult. It is better to get the support of a local intermediary company. But it is also not a guarantee that you will get a license.
Fighting the game
In Australia, the conditions for players are regularly tightened. Beginning in 2017, anyone wishing to play a slot machine in a pub or bar must first prove their identity. Plus, read the recommendations on the negative impact of gambling.
In December 2019 passed a separate law against Ludomania. According to this initiative, the country will establish a national register of self-exclusion for persons at risk of problematic behavior in gambling. Also, the Australian Banking Association has announced that it plans to limit the use of credit cards of local banks for deposits to casino sites.
Despite these severe restrictions, the illicit market for mobile and online gambling in Australia continues to grow at a seven-mile rate. According to experts, from 2013 to 2019 it grew 4 times and reached a volume of 1.4 billion dollars. And this is a completely illegal turnover. From which the state budget does not receive at least 300 million dollars annually. Most of these illegal rates go to accounts of offshore bookmakers and online casinos.
The legal turnover of local operators in 2020, according to various estimates, will exceed 6 billion dollars. However, some regions are already declaring war on slot machines, so that shortly the share of legal gambling in Australia may decline. While the shadow sector will continue to grow.
Australia is an attractive market for online gambling. The local population is very gambling and yet has high incomes. Players actively use the internet and mobile applications. But you can only work in this market illegally, being aware of the possible consequences.