Over the past few years, the Australian online gambling industry has experienced significant growth, particularly in games offering exciting features like spins. In fact, recent stats suggest that Australians spend more on online gambling than any other country in the world. The growth of the gambling sector in Australia is driven by various factors, including advances in technology and the rapid popularity of multiple forms of internet-based entertainment.

However, the meteoric growth of the online gambling industry has attracted scrutiny from various regulators in the industry. In fact, the government’s response to community concerns about the impact of gambling was a major talking point during the 2023 State elections.

The recent regulatory changes introduced to transform the online gambling landscape in Australia have a far-reaching impact on operators, forcing them to adopt new standards and requirements. In this post, we will explore some of these regulatory changes and how online casinos are adapting to them.

Mandatory Pre-Verification

In 2023, the Australian government rolled out new laws that mandated online gambling platforms to pre-verify players before they start gaming. In the past, operators had a 72-hour window to carry out full identity verification, and players were allowed to continue gaming until this period elapsed.

With the new regulations which came into effect on 29 September 2023. Australian players are required to verify their age and identity before they can deposit funds in an online casino. By implication, players are now restricted from playing slot spins or other online casino games until the verification process is completed.

All online gambling service providers must complete the applicable customer identification procedures (ACIP) before approving the creation of an online gambling account or offering betting services to players.

Identity verification is one of the measures to help operators deliver the highest level of safety to players. By collecting accurate consumer data, operators can easily exclude unqualified individuals, identify unusual betting behaviours, and intervene early where necessary.

To implement pre-verifications, operators will have to integrate robust identity verification systems into their websites and apps to allow them to verify the authenticity of government-issued identification documents quickly and accurately.

Advertising Restrictions

Advertising is an important factor that has contributed to the growth of the online gambling industry in Australia. It helps operators retain existing players and attract new ones to their platform. However, as the country grapples with the mental health and financial crisis caused by the growth of the gambling industry, the government has taken steps to regulate how gambling platforms are advertised.

Following the findings of a parliamentary committee on the potential harm posed by online gambling, the Australian government has imposed some regulatory changes that will ensure stricter control on how online casinos advertise their activities. These new laws have forced many casino platform operators to adapt their marketing strategies accordingly.

Responsible Gambling Messaging

For instance, in many Australian jurisdictions, online casinos are now required to include prominent information about the risk of gambling both on their websites and in their ads. The consistent, responsible gambling messaging requirements came into effect on 30 March 2023. It requires gambling platforms to include specific prescribed “tagline” and “call to action” on their websites, ads, and customer communications. They’re also required to rotate these taglines regularly throughout a 12-month period.

Prohibition of Certain Promotions

Additionally, the government has prohibited gambling platforms from offering some types of promotions, such as first deposit bonuses, that may induce prospective players to open an account. These promotions are now considered potentially harmful and have been prohibited.

Other Responsible Gambling and Player Protection Measures

In addition to the ban on harmful advertisements and inducements, several other measures have been introduced in various Australian states and territories. In 2018, gaming ministers from all Australian states and territories agreed to a National Consumer Protection Framework (NCPF) to guide the Australian online gambling industry. This framework has been progressively implemented to gradually minimize the harm caused by gambling in the country. Some of the components of this framework include:

• A ban on the use of credit for gambling
• Mandatory pre-commitment to opt-out deposit limit
• The introduction of a national self-exclusion register, known as “BetStop”

BetStop

In August 2023, the National Self-Exclusion Registry commenced full operation. The registry, which was regulated by the Australian Communications and Media Authority (ACMA), is designed to allow players to exclude themselves voluntarily from all online betting activities. By registering on BetStop, players will be able to exclude themselves from:

• Registering on an online or phone gambling service
• Place a bet
• Receive ads and marketing messages from online gambling operators

Since the BetStop initiative went live in August last year, over 22,000 Australians have voluntarily excluded themselves from online gambling and promotions.

Ban on the Use of Credit Cards for Gambling and Digital Currencies

Following the recommendations of the Parliamentary Joint Committee on Corporations and Financial Services, which was instituted in November 2021, the Australian government recently implemented a ban on the use of credit cards (and credit payments made via digital wallets) on online gambling platforms.

The ban on the use of credit cards and other credit-related products came into effect on 11 June 2024, which means operators have to disable these products from their platforms as a possible payment method if they had them enabled before. All online gambling platforms in Australia are expected to implement this new law, with the exception of lotteries and keno platforms.

The ban is based on a new Interactive Gambling Amendment (Credit and Other Measures) Bill, which was passed in September 2023 as an amendment to the 2001 Interactive Gambling Act. The law empowers the Australian Communications and Media Authority (ACMA) to enforce and issue penalties for any gambling platforms that breach the legislation.

Since the use of credit cards has already been banned in brick-and-mortar casinos for years, the new law banning credits on online gambling platforms will help resolve the disjoint relationship between the online and offline gambling industry.

Mandatory Pre-Commitment

Mandatory pre-commitment is another measure that has been proposed to tackle the potential harm associated with gambling in Australia. This strategy involves requiring gamblers to set a predetermined limit of how much they intend to spend (within a statutory upper limit) on casino gaming.

This is a highly effective gambling harm prevention strategy that is currently being tested in electronic gambling machines (EGMs) across various physical gambling locations in Australia.

Tasmania recently introduced a universal pre-commitment system for all pokies in the region. The statutory limit has been set to $100 in losses daily, $1,000 monthly and a maximum of $5,000. Once over this limit, players will not be able to place any bet on an electronic gambling machine anywhere in the State.

The success of the mandatory pre-commitment trials currently being carried out in physical gambling locations is expected to be a precursor to the full implementation of this regulation for both online and offline gambling in the near future.

The table below summarises the major legislations implemented in Australia so far and when they came into effect:

Conclusion

Australia has always taken a lax approach to gambling activities. However, with growing concerns over the high rate of gambling losses and other negative effects of gambling addiction on the populace, regulatory authorities in the country are now taking serious measures to mitigate the potential harmful effects of online gambling. Since these new measures are backed by active legislation, operators in the country have no choice but to fall in line and implement them for the safety and protection of consumers.