Wagering

Betting (which is conducted on-course, in retail shops and online) is regulated at a federal and state and territory level by the regulators below. 

Aside from Retail Wagering conducted by Retail Wagering Licensees, bookmaking in Australia is only permitted under a sports bookmaker or similar licence, which are commonly issued in the NT (Corporate Bookmaker Licence), or, alternatively, an on-course bookmaker licence issued in a state or territory (On-course Bookmaker Licence) to an individual or sometimes a partnership or incorporated bookmaker licensed by the relevant racing controlling body (On-course Bookmaker). On-course Bookmakers are often also licensed to conduct betting online.  Betting exchange licences are also available in the Northern Territory and in Tasmania. 

There is no limit on the number of Corporate Bookmaker Licences that may be issued and Corporate Bookmakers are only permitted to operate online and via telephone.  By comparison, in a practical sense, there is a limit on the number of physical On-course Bookmaker Licences that are capable of being issued (based on available stands).  On-course Bookmakers can accept bets on-course, as well as over the telephone and via the internet where appropriately licensed.   

Fantasy sports betting in Australia is typically permitted under a Corporate Bookmaker Licence issued in the NT.   

The primary regulators are the Australian Communications and Media Authority (ACMA) and the Australian Transaction Reports and Analysis Centre (AUSTRAC) at a federal level. Prominent state and territory gambling regulators for the betting sector include the Northern Territory Racing and Wagering Commission, Liquor and Gaming New South Wales and the Victorian Gambling and Casino Control Commission. Principal racing authorities also have a critical role to play in licensing On-course Bookmakers and regulating their operations. 

Betting (which is conducted on-course, in retail shops and online) is regulated at a federal and state and territory level by the regulators below. 

Aside from Retail Wagering conducted by Retail Wagering Licensees, sports bookmaking in Australia is only permitted under a sports bookmaker or similar licence, which are commonly issued in the NT (Corporate Bookmaker Licence), or, alternatively, an on-course bookmaker licence issued in a state or territory (On-course Bookmaker Licence) to an individual or sometimes a partnership or incorporated bookmaker licensed by the relevant racing controlling body (On-course Bookmaker). On-course Bookmakers are often also licensed to conduct betting online.  Betting exchange licences are also available in the Northern Territory and in Tasmania. 

Fantasy sports betting in Australia is typically permitted under a Corporate Bookmaker Licence issued in the NT.   

The primary regulators for sports betting are the Australian Communications and Media Authority (ACMA) and the Australian Transaction Reports and Analysis Centre (AUSTRAC) at a federal level. Prominent state and territory gambling regulators for the betting sector include the Northern Territory Racing and Wagering Commission, Liquor and Gaming New South Wales and the Victorian Gambling and Casino Control Commission.  

Betting operators seeking to take bets on certain prescribed Australian sports, such at the National Rugby League (NRL) or Australian Football League (AFL), are also required by law to apply for, and obtain, approvals from registered sports controlling bodies in order to offer markets on their sports. 

Fantasy betting involves payment to back a ‘league’ or a ‘portfolio’ selection of players or other selections over a period of time, for example in relation to sport or shares.

Betting on fantasy sports in Australia is offered by some corporate bookmakers licensed in the Northern Territory (Corporate Bookmakers) by the Northern Territory Racing and Wagering Commission (NTRWC). There is currently no land-based betting on fantasy sports in Australia. 

Retail wagering is offered by state and territory-based totalisator agency boards (TABs) under sole licences in the relevant state or territory which provide them with a form of ‘retail exclusivity’.  There is co-mingling of state and territory totalisator pools through pooling arrangements, with three Australian totalisator pools currently in existence.  Retail operations are typically conducted using authorised agents and licensing distribution arrangements. 

Retail sales are generally through distribution arrangements involving agents and contractors (such as licensed venues). 

The expiry dates of current retail wagering licences are long-dated and range between 2062 and 2100.  

Retail wagering licensees offer: (i) pari-mutuel (totalisator) betting on racing (thoroughbred, harness and greyhound) and some sports; and (ii) fixed-odds betting on racing, virtual/simulated racing, sports and other approved events.  With the exception of virtual/simulated racing (which is generally only offered in retail venues including hotels and clubs), this betting is generally offered at racecourses, retail venues, online and by telephone.      

Corporate bookmakers are licensed to offer fixed-odds betting on racing, sport and other approved events online and over the telephone.  They typically also offer totalisator derivative type wagering. 

Corporate bookmakers operating under Northern Territory licences generally have a broad suite of products that they can offer betting on. This can differ between jurisdictions. For example, a bookmaker licensed in Victoria cannot offer betting on the Ultimate Fighting Championship (UFC) but a bookmaker licensed in the Northern Territory can do so, including to a Victorian resident. 

There are other important state and territory requirements that can impact on product offerings such as under the South Australian authorised interstate bookmaker regime or under Victorian law where changes have been made that mean that bookmakers, even those licensed outside Victoria, are restricted from offering betting on sports where persons under 18 are participating.  

With the exception of the Northern Territory (which imposes a bookmaking tax and a levy on licensees), wagering taxes are levied on a ‘point of consumption’ basis. That means that a licensee will pay tax in a given state or territory by reference to the location of the customer. At the time of writing the tax rates are as follows: 

• 15% of ‘net wagering revenue’ exceeding a threshold of AUS $1 million in respect of all bets placed by Victorian residents; 

• 15% of net wagering revenue exceeding $1 million in respect of all bets placed by New South Wales residents; 

• An effective tax rate of 20% of net wagering revenue above $300,000 for all bets placed by Queensland residents; 

• 25% of Net ACT Betting Revenue above a $150,000 threshold in the Australian Capital Territory; and 

• 15% of net wagering revenue exceeding $150,000 in respect of all bets placed by South Australian residents, Western Australian residents and Tasmanians. 

Retail wagering operators, corporate bookmakers, betting exchange operators and on-course bookmakers are also required to pay race field fees/product fees to racing controlling bodies and sports controlling bodies, respectively, in relation to bets taken on their product.  These fees are generally a percentage of turnover, or the greater of a percentage of turnover and gross margin, and depend upon the relevant product.   

Only local operators holding relevant licences may offer gambling products to Australian residents. The Interactive Gambling Act 2001 (Cth) provides that it is unlawful for overseas-based operators not holding a relevant State or Territory licence to provide online gambling services to Australian residents.  

It is possible for Australian gambling providers to offer online gambling services to residents of other jurisdictions provided it is lawful under the legal regimes of those jurisdictions to do so. Many Australian wagering operators, for example, will transact with customers in New Zealand. 

Gambling debts legally incurred are enforceable in Australia; however, any such debts are only likely to arise in relation to casinos (in particular, with their VIP clients). 

Retail Wagering Licensees, Corporate Bookmakers and On-course Bookmakers operating online were banned from offering credit to their customers in 2018 as part of the implementation of measures announced in relation to the NCPF. 

Marketing affiliates are generally able to be used by gambling businesses. Whilst licensing is not required, some jurisdictions require that gambling operators keep a record of these arrangements and report them to their licensing entity upon request. For example, it is a licence condition on all Northern Territory-licensed online wagering providers to maintain a complete and up-to-date register of all affiliate arrangements and provide such a register to the NTRWC upon request.  

Certain Victorian licensed bookmakers (Vic Licensees) are obligated to record their arrangements with ‘external service providers’ (which would include marketing affiliates) in a register and provide the register to Racing Victoria (RV) upon request. RV can undertake probity checks on the entities listed on the register. If RV considers an entity not to be fit and proper person or otherwise unsuitable, they may direct the Vic Licensee take ‘appropriate reasonable action.’ Such action may, for example, include a direction to cease or limit their relationship with that marketing affiliate.

In addition to above frameworks, the activities of marketing affiliates are also regulated via the comprehensive Federal, state and territory advertising restrictions that apply to lawful advertising of gambling services. The ACMA has made it a recent compliance priority to target marketing affiliates that advertise or promote illegal online gambling services into Australia, in breach of Federal advertising laws. Separately, there is regulatory guidance in New South Wales, that indicates that a marketing affiliate may commit an offence were it to publish or communicate a prohibited gambling advertisement, if it did so under an agreement with a gambling operator for a benefit. The affiliate themselves could be prosecuted in addition to, or in place of, the gambling operator themselves.  

Match-fixing is dealt with under relevant criminal legislation in most jurisdictions, (e.g., in New South Wales, Part 4ACA of the Crimes Act 1900 (NSW)). Under legislation in most Australian jurisdictions, wagering operators are required to enter into integrity agreements with each relevant racing controlling body and the leading sporting bodies on which they offer betting products.  

These agreements allow the operator to use the statistical information relating to the sporting or racing events (and participants) in return for a fee and on the condition that they agree to cooperate with these bodies by providing information about their customers’ betting patterns and behaviour to assist in the investigation of match-fixing. In August 2017, the federal Minister for Sports, the Honourable Greg Hunt, announced a review of Australia’s sports integrity arrangements to be led by the Honourable James Wood AO QC (Wood Review). As part of the Federal Government’s response to the recommendations that arose from the Wood Review, the Department of Health was given the responsibility of developing a federal regulatory framework for sports integrity. This is known as the Australian Sports Wagering Scheme (ASWS). The purpose of the ASWS is to safeguard the integrity of Australian sport and provide a sports integrity framework for sports wagering regulation at the federal level.  

Ownership restrictions and thresholds differ between licence types and jurisdictions. 

For example, corporate bookmakers and betting exchanges licensed in the Northern Territory are required to advise the Commission of direct or indirect ownership interests of 10% or more and also to seek approval prior to making changes to share capital structure or ownership. Inquiries will be conducted to determine whether the person or associate is suitable to hold or control such interest. The Commission may require interests to be divested. 

In Victoria, all shareholders and directors of an applicant for a corporate Club Bookmaker’s Licence must be registered bookmakers who have been approved by the VGCCC to conduct the bookmaking business of the company.  

There are also statutory restrictions applicable to some operators such as TAB Limited, the NSW wagering licensee. Under the Totalizator Act 1997 (NSW), a legislative amendment would be required to allow any bidder to acquire more than 10% of the shares in it or its ultimate holding company.   

Shareholdings can enliven “associate” requirements requiring relevant persons to undergo probity assessment and to be approved by the relevant regulator.  

The Federal Interactive Gambling Amendment (Credit and Other Measures) Act 2023 banned the acceptance, or offer, of payment using specified payment methods, including credit cards, credit related products and digital currency, in connection with certain interactive wagering services (including online wagering). 

The Act expanded the ACMA’s powers to enforce the new provisions (including through enforceable undertakings and remedial directions) and civil penalties of up to AUS $247,500 can apply for any breach of the new provisions. 

The ban on use of credit cards for online wagering was supported by the Australian Banking Association and other stakeholder groups as a means to assist people experiencing gambling harm to control their finances and is consistent with the NCPF prohibition on offering or providing consumers with lines of credit. 

There is no legal restriction on using credit cards to purchase lottery tickets.

Generally, liability is placed on the gambling provider to comply with the various legislative requirements, rather than the customer. However, in some limited circumstances, a customer can also be held liable. For example, in Western Australia, individuals can be penalised if they are a minor who places a bet (see section 22 of the Betting Control Act 1954 (WA) (BCA)) or if they place a bet on an Australian race with an operator who is unlicensed (see section 23 and 24 of the BCA). 

There are also certain situations whereby persons who aid or abet criminal activity are at risk of committing an offence themselves. This can also extends to those involved in money transfers (in certain situations). There are currently no legislative requirements placed on ISPs to implement geo-blocking or other similar measures to prevent Australians from accessing illegal or unlicensed gambling content.  

However, the ACMA has the power to request ISPs block access to offshore online gambling operators it considers to be operating illegally in Australia (see section 313 of the Telecommunications Act 1997 (Cth)). ACMA also maintains a list of the illegal websites it has blocked and publishes this on their website. As of 11 December February 2024, there have been 1,117 websites that have been blocked by the ACMA. Additionally, the ACMA also publishes a list of approved operators that hold an Australian licence to assist Australian consumers who are gambling online to make informed decisions.  

There are comprehensive federal, state and territory advertising restrictions that apply to the lawful advertising of gambling services. Those advertising restrictions take the form of legislation and regulation in addition to codes of conduct (such as the Australian Association of National Advertisers (AANA) Code of Ethics and the AANA Wagering Advertising and Marketing Code). In addition to the usual responsible gambling warnings, it is an offence to advertise an inducement to open a betting or keno account and, in some jurisdictions, to gamble.   

The promotion of gaming machines is also heavily restricted across the country and generally limited to direct marketing to customers participating in loyalty programs. 

The Federal government has enacted new ‘rules’ which restrict gambling advertising and odds promotion during broadcasts of live sport, with one key objective being to limit its exposure to children. These rules have recently been extended to online streaming of live sport.  

The regulator in NSW, L&GNSW has been focused on pursuing wagering operators that publish gambling advertising that it considers breaches state legislation since circa 2012. This is expected to continue , including given the recently introduced capacity to issue penalty infringement notices. NSW is widely regarded as having the strongest gambling advertising restrictions and associated penalties in Australia (which include potential director and other corporate officer liability). Several prominent bookmakers have or are facing, court action in NSW for alleged advertising breaches involving gambling inducements. In NSW (and other jurisdictions), it is an offence to publish or communicate any inducement to participate or to participate frequently, in any gambling activity. This includes an inducement to open a betting account. The maximum penalties that can be applied in NSW for infringements were recently increased to AUD$110,000 for corporations and AUD$11,000 for individuals. 

Lotteries advertising is prevalent and not subject to these particular restrictions. 

Separately, the Competition and Consumer Act 2010 (Cth) imposes penalties for, amongst other things, misleading and deceptive conduct (including through advertising).  

In June 2023, the House of Representatives Standing Committee on Social Policy and Legal Affairs released its report following an inquiry into online gambling and its impacts on those experiencing gambling harm. The Committee reviewed 161 submissions and conducted 13 public hearings involving multiple individuals and organisations including, bookmakers, online wagering service providers, customers, researchers, sporting organisations, and state and territory gambling regulators. 

The Committee handed down 31 recommendations for addressing risks associated with online gambling. The recommendations included, a phased ban on advertising for online gambling and a ban on all online gambling inducements and inducement advertising.  

The four phases proposed in relation to the advertising ban include the following: 

• Phase One: prohibition of all online gambling inducements and inducement advertising, and all advertising of online gambling on social media and online platforms. Removal of the exemption for advertising online gambling during news and current affairs broadcasts. Prohibition of advertising online gambling on commercial radio during school drop off and pick up times. 

• Phase Two: prohibition of all online gambling advertising and commentary on odds, during and an hour either side of a sports broadcast. Prohibition on all in-stadia advertising, including logos on players’ uniforms. 

• Phase Three: prohibition of all broadcast online gambling advertising between the hours of 6.00am and 10.00pm. 

• Phase Four: by the end of year three, prohibition on all online gambling advertising and sponsorship. 

The state and/or territory taxes that apply to gambling products depend upon the relevant licence under which the product is being offered, the type of product and also the jurisdiction in which the product is offered.

Senet can provide detailed advice on state and territory gambling tax regimes and other fees that may apply (including race field fees and fees payable to sports controlling bodies that apply to bookmakers). 

Bookmaking requires a corporate bookmaker licence or an on-course bookmaker licence.  Corporate bookmakers are commonly licensed in the Northern Territory, whereas on-course bookmakers (which may have online operations) are licensed in the relevant state or territory.  Corporate bookmakers offer fixed-odds betting online and over the telephone on sport, racing and other approved events, whereas on-course bookmakers offer fixed-odds betting on-course and, subject to approval, also over the telephone and in some instances online on similar events as a corporate bookmaker. Corporate Bookmakers typically also offer ‘totalisator-derivative’ or ‘tote odds’ type betting. 

Holding a licence to operate online that has been issued in one Australian state or territory will generally permit the selling of bets online or over the telephone across state and territory borders and internationally into countries where it is legal to do so. 

Yes, sports betting can legally be offered online to Australian residents if you hold a licence issued in an Australian state or territory. Online betting is regulated at a state, territory, and federal level. 

Sports bookmaking requires a Corporate Bookmaker Licence or an On-course Bookmaker Licence with the required permissions.  Corporate Bookmakers are commonly licensed in the Northern Territory, whereas On-course Bookmakers (which may have online operations) are licensed in other relevant states and territories.  

Corporate Bookmakers can offer fixed-odds betting online and over the telephone on sport, racing and other approved events, whereas On-course Bookmakers offer fixed-odds betting on-course and, subject to approval, also over the telephone and in some instances online on similar events as a Corporate Bookmaker.  

Sometimes an On-course Bookmaker will be licensed to offer fixed-odds betting on racing only.  Corporate Bookmakers typically also offer ‘totalisator-derivative’ or ‘tote odds’ type betting. 

Fantasy betting is typically a payment to back a ‘league’ or ‘portfolio’ selection over a period of time, in relation to sport. Betting on fantasy sports in Australia is offered by some Corporate Bookmakers licensed in the Northern Territory, and which is regulated by the NTRWC. There is currently no land-based betting on fantasy sports in Australia with all offerings extended online.