It is clear that Australia's and New Zealand’s gambling regulatory landscape will continue to evolve at pace as 2026 progresses. From important AML/CTF reforms and heightened regulatory enforcement activity, to the imminent introduction of New Zealand’s online casino licensing regime, unresolved questions around cashless gaming and prospective advertising restrictions, operators face a year of significant change and in which compliance decisions carry material commercial consequences.

This article provides a structured overview of some of the key regulatory developments most likely to affect wagering, gaming and broader gambling businesses in 2026 - what has changed, what remains uncertain and where attention should be focused now to stay ahead of what is coming.

Author: Julian Hoskins, Principal / Daniel Lovecek, Principal

AML/CTF compliance and enforcement

We anticipate that AML/CTF compliance will remain a particular regulatory focus for 2026 across the broader gambling sector. Although the wagering and casino industries have come under significant examination in recent years, it is clear from recent enforcement activity and communications that pubs and clubs operating electronic gaming machines are, and will continue to be, subject to scrutiny. The Federal regulator, AUSTRAC, has recognised that Australia’s pubs and clubs remain vulnerable to exploitation by bad actors, particularly given their exposure to cash and that mandatory carded play reforms which would require player identification have not progressed with the pace anticipated just a few years ago. A number of significant enforcement actions remain unresolved at the time of writing, including proceedings against The Star (casino), Entain (online wagering operator) and the Mounties Group (licensed club group) which have the capacity to significantly shape industry compliance practices.

In addition, gambling operators across the sector are now concentrating on implementing new requirements which will shortly take effect following the introduction of significant AML/CTF regulatory reforms to uplift Australia’s financial crime responsiveness to align with Financial Action Task Force (FATF) requirements. These changes will impact on existing “reporting entities”, including licensed gambling operators (other than lottery licensees) and also so-called “Tranche 2” entities providing high-risk services. Although Parliament has described its objective of adopting a more risk-centred and less prescriptive approach to regulation, there has been uncertainty regarding the implementation of particular requirements, including in relation to customer due diligence obligations which have changed under the new regime. AUSTRAC has recently announced that particular reforms will be delayed to allow a more orderly transition to new customer due diligence and other requirements. In the meantime, however, it is important that operators have reviewed their AML Program, risk assessments and supporting policies and procedures to be compliant ahead of the 31 March 2026 commencement date. This timeframe may be challenging for some operators, particularly given that the proposed amendments to the AML/CTF Rules and transitional arrangements are yet to be finalised.

ACMA enforcement

2025 was notable in terms of the heightened presence of the Federal regulator, the Australian Media and Communications Authority (the ACMA) and its proactive enforcement activities. Although the ACMA has been particularly active in recent years in its efforts to respond to international operators providing illegal services to Australian residents, more recently we have also observed an enhanced domestic compliance focus. This is a trend that we anticipate to continue in regard to a number of compliance priorities including, most acutely, in relation to safer gambling, spam messaging and in response to the proliferation of certain trade promotion-centric business models.

Following the introduction of Australia’s National Self-Exclusion Register for online wagering, BetStop, in August 2023, the ACMA has been active in both communicating regulatory expectations and in acting upon suspected non-compliance. In a number of cases, the sanctions applied have involved operators entering into court-enforceable undertakings which have required extensive, and potentially costly, process reviews and reforms. We anticipate that the ACMA and other gambling regulators, will continue to utilise this disciplinary enforcement mechanism (or alternatively issue remedial directions) to shift the compliance assurance burden to operators. It is clear that even isolated events of non-compliance can lead to regulatory sanction and wagering operators have been well-advised to ensure that their processes are aligned with the guidance that has been issued.

Spam messaging, which involves the sending of unsolicited commercial electronic messages, has been another focus area for the regulator with significant penalties imposed for non-compliance. The published instances of non-compliance have served to highlight potential risk areas for gambling operators, including in relation to customer communications involving VIP and high-value customers (which are required to include mandated messaging) and the interconnectivity of systems with BetStop and internal platforms that, if not functioning as required, can expose customers (and unwitting operators) to messages being sent without the requisite consent.

Finally, heading into 2026 it would be remiss not to comment on the growth of membership-based businesses utilising trade promotion lotteries (or ‘sweepstakes’) to promote their businesses. Social media advertising is replete with advertisements for both established and start-up platforms that promote the chance to win cars, houses, cash and other prizes in return for purchasing or maintaining a subscription membership. We expect that this growth is being keenly observed by the ACMA and State and Territory regulators, particularly where there may be no underlying substantive business which is being promoted. We note the outcome of the South Australian proceedings against Xclusive Tech Pty Ltd (LMCT+) and Adrian Portelli brought by that State’s gambling regulator and heard in September 2025 is eagerly awaited by the industry.

New Zealand online casino gambling

The Online Casino Gambling Bill 2025 (NZ) (Bill) remains before the New Zealand Parliament after recently progressing through a second reading and passing to the Committee of Whole House. The Bill will introduce major changes to the New Zealand regulatory environment and seeks to regulate a significant offshore market that currently operates in the country. Most notably, the Bill would introduce a licensing system and creates prohibitions on both conducting and advertising online casino gambling without a licence. In the meantime, it remains lawful for offshore gambling operators to offer online casino products and services to New Zealand residents.

New Zealand, Australian and international gambling operators have been closely monitoring the passage of the Bill and the development of regulations that will support it and, importantly, confirm the key operating parameters for licensees. In late December 2025, the Department of Internal Affairs advised an indicative timetable for implementation of the reforms which contemplates the commencement of the Online Casino Gambling Act in May 2026, the publication of the regulations in mid-2026 and the three-stage licensing process commencing in July 2026 with expressions of interest. Under the current timetable, from 1 December 2026, gambling operators currently servicing the New Zealand market would be required to cease conducting online casino gambling in New Zealand if they have not applied for a licence.

Cabinet papers released by the Government indicate that the regulatory settings aim to make licences attractive to prospective operators to maximise the channelling of consumers to the newly regulated market while balancing consumer protection objectives. The Government has stated that its preferred option for the market establishment phase seeks to introduce flexible regulations, with the objective of restricting operators from engaging in behaviours highly likely to cause harm, while enabling voluntary restrictions consumers could choose to opt out of.

We note with interest that the Regulatory Impact Statement recognises that consumers have a wide range of grey market providers that they may choose to gamble with and, implicitly, that while consumer protection must remain at the fore of policy, if the regulatory settings are not right then consumers may continue to choose this option. This concern is consistent with recently published Australian data (see Responsible Wagering Australia, Australia Offshore Market Analysis 2025) that refers to a A$3.9 billion offshore market growing to A$5 billion by 2029 and commentary from the UK Gambling Commission regarding consumer trends relating to the adoption of cryptocurrency and the appeal of grey market overseas operators offering this transaction method. We look forward to confirmation of the regulatory settings and observing the market response under the new licensing regime.

“You Win Some You Lose More” report

On 28 June 2023, The House of Representatives Standing Committee on Social Policy and Legal Affairs released the report titled ‘You Win Some, You Lose More’, in relation to online wagering and its impacts on those experiencing gambling-related harm.

The report recommended some significant reforms to online wagering regulation, including among other recommendations, a phased ban on online gambling advertising within three years and a ban on inducements to gamble.

The Commonwealth government response was originally expected by the end of 2023. A draft response by the Communication Minister’s department was, we understand, prepared in November 2024, however the exact timing of the formal response is unknown at the time of writing.

Mandatory carded play (cashless gaming)

There has recently been a significant roll-out of cashless gaming in the casinos sector in Australia, as a result of mandated use brought about following the various Royal Commissions and Inquiries. Interestingly, on 1 December 2025 Crown Perth introduced carded only play that includes time and loss limits, guest self-monitoring of play and play safety checks. According to Crown, Western Australia is the only global jurisdiction which has cashless play incorporating these features.

Aside from casinos, gambling regulators in various Australian jurisdictions have introduced cashless gaming frameworks for pubs and clubs (for example, in Queensland and South Australia, where they are permitted but not mandatory), or they are currently undergoing cashless trials (for example, in New South Wales and Victoria) although Tasmania has recently abandoned their proposed cashless gaming and mandatory pre-commitment reforms.

It is important to note that New South Wales previously conducted two regulatory sandbox trials in 2022 and 2023 and subsequently established an independent panel to oversee a larger trial in 2024. The independent report recommended that cashless gaming be implemented in pubs and clubs from 2028, although fierce criticism followed the reviews given the very small number of patrons who participated in the latter trial. In Victoria a cashless gaming trial ran from September to November 2025 involving 43 venues, with the results yet to be announced.

It is expected that there will be a continued focus on cashless gaming in pubs and clubs throughout 2026, with other related reforms to follow. Pubs and clubs should take an active involvement in how the regulatory frameworks develop, including through consultation with government and the relevant regulators and also considering any relevant data used to support the frameworks.

Sportsbet Class Action

The Sportsbet class action is a legal proceeding seeking compensation for losing in-play bets made via Sportsbet’s “Fast Code” service between 24 December 2018 and 24 December 2024.

The class action, led by Maurice Blackburn Lawyers, targets Sportsbet Pty Ltd over its Fast Code service, which allowed customers to place in-play (live) bets on sporting events online rather than entirely by telephone.

Under the Interactive Gambling Act 2001 (Cth), in-play bets are only lawful if made wholly by telephone. The lawsuit alleges that Sportsbet’s Fast Code system violated this law and engaged in misleading and deceptive conduct by representing the service as legal while breaching its own terms and conditions.

The class action seeks refunds of all losing in-play bets placed via the Fast-Code system.

The hearing is scheduled to commence in the Victorian Supreme Court on 3 August 2026, with an estimated duration of 2-3 weeks. The outcome of this proceeding may have “flow-on” effects for other Australian wagering operators who have offered “in play” solutions to their customers.

About Senet

Senet is a multidisciplinary Australian firm specialising in gambling and gaming law, regulatory compliance, and business advisory services. We are the largest specialist team in Australia and based in Victoria. Recognised globally as experts in our field, we understand Australia’s complex gaming legal and regulatory landscape, enabling us to guide clients through their compliance requirements across each state and territory. Our clients range from start-ups to publicly listed global operators, both nationally and internationally. Our team is deeply immersed in the industry, often sharing insights at public speaking events, and our principals have held executive roles in a global ASX-listed entity and a 'Big Four' advisory firm, giving us a unique perspective on the challenges our clients face.

If you have any questions or would like to discuss the topics covered in this article, please contact the team at Senet.

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