Illegal Offshore Gambling: A Growing Threat
ILLEGAL GAMBLING MARKET DOUBLES, COSTING AUSTRALIA BILLIONS
MEDIA RELEASE
20 November 2025
Australia’s illegal offshore gambling market has more than doubled since 2019, with Australians now losing $3.9 billion a year to illegal sites and this figure rising to $5 billion by 2029, according to new research by H2 Gambling Capital for Responsible Wagering Australia (RWA).
That’s $3.9 billion being lost to criminal offshore operators who offer no consumer protections, pay no taxes, and return nothing to Australian sport, racing or the community.
The report shows the offshore market now makes up 36% of all online gambling in Australia, with its rapid growth set to cost governments almost $2 billion in lost revenue over the next five years, and almost $800 million in lost product fees to sport and racing.
Annual losses are projected to reach $585 million by 2029, including $135 million stripped from racing and $40 million from sport every year.
The biggest victims of the illegal offshore market are consumers themselves, who lose access to the safeguards that exist onshore including safer gambling tools and dedicated teams who monitor behaviour in real time and step in to prevent harm before it occurs.
RWA CEO Kai Cantwell said Australian-licensed operators are tightly regulated to protect customers and prevent harm, but offshore sites exist in a regulatory wild west where there are no limits, no oversight, no guarantee you’ll ever see your winnings and no avenues for recourse when something goes wrong.
“These operations are often controlled by organised criminal networks in tax and regulatory safe havens, exploiting loopholes to launder money and dodge sanctions,” Mr Cantwell said.
Betstop is an incredibly successful Australian Government and industry partnership within Australian borders, but shockingly 50% of Australians gambling offshore have done so while registered on BetStop, undermining one of Australia’s most important safer gambling tools.
“Australia’s world-leading consumer protections are only effective if people stay within the system, and right now, it’s too easy to bypass them offshore with a few clicks,” Mr Cantwell said.
By avoiding taxes, product fees, integrity and compliance obligations, and safer gambling investments, offshore operators can out-compete licensed Australian providers - offering better odds, bigger bonuses and banned products like online casinos and live in-play betting that lure Australians to their dangerous sites.
While better odds (48%) and bonuses (44%) were the most commonly cited single reasons for gambling offshore, live in-play betting stands out as the most influential overall factor when respondents were asked what they consider critically or very important.
“Ensuring Australia’s onshore market stays competitive is essential, because if people can’t find the products or prices they want here, they don’t stop gambling, they just go offshore,” Mr Cantwell said.
Offshore operators also use predatory and misleading advertising primarily through social media influencers and affiliate networks to appear legitimate, with almost half of customers unable to tell if a site is legal.
“Unlike licensed operators, who use data to identify and support at-risk customers, illegal sites use it to target vulnerable Australians and minors with high-risk offers and exaggerated bonuses,” Mr Cantwell said.
While the ACMA are working hard to shut down illegal sites, even they admit that they lack the tools to shut down these criminals – which is why stronger enforcement, balanced with sensible onshore regulation and cooperation from industry, banks, tech platforms and sport is needed to cut off the lifelines that keep illegal operators in business.”
“A strong, consistent national framework will protect Australians, preserve funding for sport and racing, and ensure initiatives like BetStop aren’t undermined by unregulated offshore sites.”
The report recommends a national crackdown to close enforcement gaps and protect consumers. The list of recommendations is summarised in an appendix to this media release.
To read the full report please visit the Responsible Wagering Australia website.
