Is Australia Becoming the New iGaming Hub?

In its early years, online gambling -still largely undeveloped and in a primitive stage- faced a slow growth as most people still preferred physical casinos and betting shops. But with the emergence of new technology like smartphones and digital payment, it became more and more accessible to ordinary people, which gave it a rapidly increasing customer base.

iGaming received a further boost from the COVID-19 pandemic. Quarantines and lockdowns indefinitely closed down all casinos and sports betting shops, which drove their customer base to online gambling. Even now, the world of iGaming is constantly evolving due to new software, increasing automation, and the rapid permeation of AI in digital systems.

This growth is also attributed to other factors: the user’s perspective of these platforms also came into consideration and inspired operators to construct a user interface that was much easier for customers to understand. Streamlining processes like payments and applications gave them unprecedented speed. This increased user engagement and retention.

The increasing attention to online gambling also brought it under government scrutiny. Governments began to bring the market under control by introducing regulations and licenses. Rather than harm business, these regulations were meant to protect the customers from fraud or invasion of privacy. Protection of the customers’ interests meant that they could play without fear of being cheated out of money or having their personal information leaked. Moreover, licensing and authorization from the government disproved the notion that gambling was immoral or taboo, which further increased interest.

The iGaming industry is growing larger by the year and Australia has consistently been a large portion of this growth. In 2024, iGaming in Australia market was valued at over US $5 billion. As the market expands and gains more attention from investors, this number may reach US $8.9 billion by 2033.

This whitepaper aims to analyze the recent trends, regulations and predictions in the Australian online gambling market in order to prove its status as a popular iGaming hub in 2025.

1. Regulations and Licensing 

Online gambling is largely regulated by state governments with almost no overarching law except for the Interactive Gambling Act of 2001 (IGA). The Australian Communications and Media Authority (ACMA) is in charge of advertising and regulatory compliance and enforces the 2001 Act. According to this Act, ‘real money’ interactive gambling such as online poker or casinos are illegal, and even offshore operators cannot provide services to Australians.  

Sports betting, on the other hand, is allowed so long as the company/platform is licensed and recognized by both the federal and state government. It is heavily regulated and live/in-play betting is illegal. 

Several authorities are also lobbying for a severe ban on the advertisement of betting platforms to protect minors and at-risk individuals. 

1.1 Western Australia 

Established by the Gaming and Wagering Commission Act 1987, the Gaming and Wagering Commission (GWC) administers laws related to all kinds of gaming and wagering, including online betting. It is under the Department of Local Government, Sport and Cultural Industries (DLGSC) and regulates with the help of: 

• Betting Control Act 1954  

• Casino Control Act 1984 

• Gaming and Wagering Commission Act 1987 

• Racing and Wagering Western Australia Act 2003 

It also has the power to approve or withhold any licenses, permits, certificates and authorizations relating to gambling. In 2025, the GWC will cooperate with other agencies and take steps to eliminate criminal activity in the gambling industry.  

1.2 Northern Territory 

The Racing and Wagering Commission (NTRWC) was established under the Racing and Wagering Act 2024. This act has multiple roles: it promotes the development of these industries while negating criminal activity and protecting consumers and minimizing any damage. It sets down the rules of taxation and ensures the resolution of complaints. It also promotes the welfare of animals in the racing industry.  

The Commission’s role is to supervise and regulate both the racing and wagering industries while ensuring compliance and enforcing the Act. Another major law to regulate online gambling is the Gaming Control Act 1993. 

The Northern Territory recently spoke of plans to double the annual wagering tax cap for licensed bookmakers but is being met with significant resistance from Responsible Wagering Australia (RWA) and providers.

1.3 Queensland 

All forms of gambling are regulated by the Office of Liquor and Gaming Regulation (OLGR), which also takes measures to ensure compliance. It was established as a unit of the Department of Justice and Attorney-General in 2011. Some of its gambling-related policies are: 

• Interactive Gambling (Player Protection) Act 1998 

• Wagering Act 1998 

• Charitable and Non-Profit Gaming Act 1999 

OLGR aims to create safe gambling environments that both support the development of the market and ensure no harm comes to the players.  

1.4 New South Wales 

The Liquor and Gaming NSW (L&GNSW) is an independent regulatory body responsible for implementing and ensuring compliance with government policies for gaming and wagering. Other responsibilities include approving licenses and monitoring collected revenue from gaming. It operates under: 

• Totalizator Act 1997 

• Betting and Racing Act 1998  

The NSW Government is currently taking steps to reduce and eliminate gambling harm in at-risk groups such as Aboriginal communities and veterans by educating them on the risks of excessive gambling and providing support for those that have been affected. 

1.5 South Australia 

The advertising of gambling products and responsible gambling practices is regulated by the Liquor and Gambling Commissioner under a code of practice that balances the development of responsible gambling with protection of consumer rights. It prevents criminal activity, exploitation and any harm that is a result of gambling. 

The Commissioner is part of the Attorney-General’s Department and enforces the following gambling-related regulations:  

• Authorized Betting Operations Act 2000 

• Gambling Administration Act 2019 

  
  

1.6 Victoria 

The Victorian Gambling and Casino Control Commission (VGCCC) acts independently and reports to the Victorian Parliament through the Minister for Casino, Gaming and Liquor Regulation. It was founded under the Victorian Gambling and Casino Control Commission Act 2011 and operates under: 

• Racing Act 1958 

• Casino Control Act 1991 

• Casino Management Agreement Act 1993 

• Gambling Regulation Act 2003 

• Victorian Gambling and Casino Control Commission Act 2011 

It aims to ensure safety, integrity and fairness by regulating the gambling industry while protecting citizens from harm. The VGCCC recently cracked down on several bookmakers for failure to comply with the necessary betting account closure rules set forth by the National Consumer Protection Framework (NCPF) for Online Wagering. 

1.7 Australian Capital Territory 

This region has an independent gambling authority known as the Gambling and Racing Commission, established under the Gambling and Racing Control Act 1999. The Commission reviews gambling and racing-related legislation/policies, regulates activities and investigates issues or complaints. It collects all lawfully imposed taxes, fees and charges and ensures consumer protection while taking action against criminal activity. The Commission enforces several legislations: 

• Interactive Gambling Act 1998 

• Racing Act 1999 

• Race and Sports Bookmaking Act 2001 

• Race and Sports Bookmaking Regulations 2001 

• Gambling and Racing Control (Code of Practice) Regulation 2002. 

• Unlawful Gambling Act 2009 

• Totalisator Act 2014 

1.8 Tasmania 

Online gambling is regulated by the Tasmanian Liquor and Gaming Commission, an independent body administered by the Department of Treasury and Finance. It was established under and enforces the Gaming Control Act 1993. It authorizes licenses and permits and regulates gambling.  

2. Payment Methods 

Betting sites must offer a variety of payment methods to Australians in order to increase and maintain their user base.  

2.1 Payment Cards 

The most common payment option for betting is currently debit cards. Cards from providers like Visa and Mastercard are accessible to everyone while also offering quick, effortless payments. Card payments also ensure security through measures like 2FA (2 Factor Authentication) and fraud detection.  

Debit cards are seen as a safer payment method not just because of the security they offer, but also their convenience and familiarity. They are seen as a viable option for budget-conscious players. They are especially popular among millennials and older bettors.  

Until last year, credit cards were also a widely used method of payment for online wagering. Effective June 11, 2024, the Government enforced the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 to ban the use of credit cards and credit payments via digital wallets. This step was taken to protect players from racking up debts that they would later be unable to pay. 

2.2 Digital Wallets  

E-wallets are also experiencing a surge in usage. This payment option is faster and more streamlined than traditional methods as it functions as an intermediary and the player does not have to directly use his/her bank account. It also enables speedy withdrawals, and players can instantly access their winnings or rewards. 

Several digital wallets also support multiple platforms, and payment information can be stored for multiple transaction methods. Players can check their transaction history with ease and these platforms also offer rewards for promotion or loyalty programs. Some highly used e-wallet platforms include Paypal, Skrill and Neteller.  

2.3 BNPL 

A new alternative payment method called Buy Now Pay Later (BNPL) is on the rise. By using BNPL, players can make purchases and then pay for them in installments. This method offers flexible payments with very little interest and no hidden costs.  

According to a 2024 study by Finder, 41% of Australians have used BNPL services at least once every six months. It is especially popular among Gen Z and Millennials. The Government, Reserve Bank and providers, however, are looking to regulate the use of BNPL to prevent mounting debt among users. This may affect its popularity. Frequently used BNPL platforms include Zip, Klarna and Afterpay. 

2.4 PayID 

The New Payments Platform (NPP) is a national 24/7 real-time payment system launched in 2018. It streamlines payments and makes them more efficient, which speeds up transactions and makes them more cost-effective for both users and providers. It offers various services such as Osko (P2P and B2P payments), Payto (business withdrawals), and PayID (simplified payments). 

PayID allows users to make payments with a memorable identifier such as their mobile number, email address or ABN (Australian Business Number). This eliminates the need for bank details to send and receive money and makes the process faster, streamlined, and cost-effective. PayID is not limited by geographical boundaries and is increasingly being integrated by banks.  

2.5 Cryptocurrency 

Although Australia is known as quite liberal for its stance on cryptocurrency, the Government recently took measures to ban the use of cryptocurrencies for online gambling through the Interactive Gambling Amendment (Credit and Other Measures) Bill 2023. Much like the ban on credit card use for wagering, this move is meant to prevent players from spending money they don’t have and incurring mounting debts. However, concerns were also expressed over the possibility of players turning toward less-regulated gambling options, which may undo the effects of this law. 

Despite older payment methods like debit cards being expected to slow in growth over the years due to the emergence of new and alternative payment methods, it would still be beneficial for bookmakers to provide these options to attract and retain older audiences.  

3. Popular Games and Trends 

According to the latest comprehensive study by the Australian Gambling Research Centre (AGRC) for the year 2022, horse racing and sports are the two most popular activities for online betting. There are also various kinds of betting associated with some sports. 

3.1 Horse racing 

According to the AGRC in 2022, horse racing is the most common sport for online wagers. A staggering 91% of all regular online gamblers bet on it, enough to warrant a category of its own. Horse racing sees several events being held throughout the year, but the most well-known are the Melbourne Cup, the Caulfield Cup and the W. S. Cox Plate, all Group 1 and held in Melbourne. 

The Melbourne Cup, known as the ‘cup that stops a nation’, is one the biggest annual horse racing events worldwide. It is usually held on the first Tuesday of November every year and enjoys its own public holiday. It first began in 1876 and quickly rose to the status of being one of the richest horse races in Australia. It is estimated that close to 90,000 people attended this event last year.  

The Caulfield Cup, considered second in popularity to the Melbourne Cup, sees great popularity with 18 runners competing for $5 million in prize money. It is a handicap race, meaning each horse is allocated a specific weight to equalize chances. This year, it will be held on Saturday, 18th October. 

The W.S. Cox Plate is a weight-for-age race for horses 3 years or older and will be held on Saturday, 25th October this year. The winner takes home $3 million for coming first in a 2040 meters race. 

Although horse racing is very popular, it has recently been experiencing pushback for animal cruelty and experiencing a worldwide decline with the emergence of newer and easier kinds of gambling. 

3.2 Australian Rules Football 

Among the 86.7% of regular bettors that account for online sports, the Australian Football League (AFL) is the most bet on sports event in the country with 58.5%. It consists of 18 teams spread out over 5 of the mainland states with Tasmania to join in 2028 with a 19th. The season begins in March and continues till September with usually 23 rounds. An estimated 500,000 bet on the event each year. The AFL itself also encourages online betting and profits from it through its wagering partner Sportsbet. 

3.3 Rugby  

The National Rugby League (NRL) is the second most popular Australian sports event with 49.%. It is currently taking place from March to October. It comprises 17 teams, one being from New Zealand, and will have 27 rounds total. The NRL is simultaneously aware of the risks of gambling but also actively promotes and seeks revenue from it.  

3.4 Soccer 

Association football, known in Australia as soccer, comes in at 3rd place with 28.5%. One of the most anticipated national soccer competitions is the Australia Cup, which began in February this year and is expected to conclude in June.  

3.5 Cricket 

Cricket is a well-known sport, also in terms of betting, in Australia, having been around for well over a century and achieving 4th place with 27.4% of regular online sports betting. Unlike Australian football and rugby, the cricket team plays in several tournaments both within and outside Australia, which gives players multiple chances to bet as well as participating in betting internationally.  

3.6 E-sports 

E-sports, short for electronic sports, makes video games competitive through multiplayer tournaments between professional gamers. These events are often hosted in a controlled environment, including individual and team games, and are open to spectators. It accounted for an estimated 22.8% of regular online bettors.  

3.7 Types of Betting 

The Australian betting market offers diversity not just in the number of sports you can bet on, but also the kinds of bets you can place. While live/in-play betting (placing bets while the event is ongoing) is illegal, there are several other kinds of bets for players to choose from.  

Some players prefer to bet on the long-term results or final outcome of a multi-stage event. Players place bets on the team that they think will win the season or tournament. This is known as futures betting. 

Fixed-odds betting is a popular option wherein the player places a bet on the outcome of a game, but the amount of money they might win will not change regardless of future fluctuations.  

Rather than betting on the outcome of a game or tournament, prop/proposition bets allow players to wager on events that might not be dependent on the outcome of the game. These bets can be placed on individual players or specific events/statistics. Prop bets are far more extensive than other kinds of betting 

4. How KodeDice Can Help 

KodeDice is an online casino and sportsbook development and solutions company that helps its clients achieve success by creating platforms that not only meet but surpass industry standards, while also making sure they are tailored to the visions of our clients. 

We offer an extensive range of managed services including CRM, CMS and API integrations, aggregators, and PAM interfaces. We make efforts to keep all our software and solutions up to date on regulations as well as ensure strong security and risk management. 

We also offer a versatile casino/sportsbook payment system that supports all kinds of payment methods, such as credit and debit cards, bank transfers, digital wallets and cryptocurrencies along with multi-layer security and respective fraud prevention protocols. 

For more information, visit our website: https://www.kodedice.com/