In Australia, an activity will be regarded as gambling if the activity generally involves all the following elements:

1. the staking of money or any other provision of consideration of real-world value (the consideration element);
2. the outcome of an event determined by an element of chance or mixed chance and skill (the chance element); and
3. the prospect of winning a prize (the prize element).

If an activity does not involve one or more of the above elements, it is unlikely to be considered gambling under Australian law. However, gambling activities are regulated at both the Federal and State levels, and Federal legislation and State and Territory legislation each define gambling (with the definitions differing slightly between the Federal legislation and each State and Territory legislation).

This has the effect that an activity may be considered gambling in some Australian States and Territories, but not in others. This issue often arises in relation to skill-based games.

In some cases, it is also unclear if a particular type of activity falls within the scope of the definition. This issue often arises in relation to social games. For example, it is unclear under Australian law if:

1. in-game purchases offered in free-to-play games satisfy the consideration element; and
2. additional play prizes, and other prizes that do not have real-world value, satisfy the prize element.

Legislative power for online gambling in Australia is divided between the Federal government and the governments of Australia’s eight constituent States and Territories.

Interactive (online) gambling services

Very generally, Federal gambling legislation regulates interactive (online) gambling services, whilst State and Territory gambling legislation sets out the framework within which interactive gambling services permitted under federal gambling legislation can be licensed, conducted and promoted.

The principal piece of Federal legislation which applies to interactive gambling services is the Interactive Gambling Act 2001 (IGA). The general principle under the IGA is that the provision (and advertisement) of interactive gambling services is prohibited unless that service is provided under a licence issued by an Australian gambling regulator. Only certain types of online gambling activities can be licensed in Australia – for example, online casinos cannot be licensed in Australia and it is prohibited to provide those services in Australia under the IGA.

In order for an interactive gambling service to be provided lawfully in Australia, the service must comply with both the IGA and the laws of any States or Territories in which that service is provided to customers. This means that services which are provided Australia-wide must comply with the IGA as well as the laws of all of Australia’s eight constituent States and Territories.

Land-based gambling services

Very generally, all types of land-based gambling services are regulated under State and Territory gambling legislation. Separate legislation exists for each type of gambling services.

An example of the myriad of legislation that applies to gambling activities in Australia under Federal legislation and New South Wales (State) legislation is set out below – note that the list of Federal gambling legislation and New South Wales legislation is not exhaustive. Various rules, guidelines, directions, orders and standards that are issued by the Federal or New South Wales regulator and/or the responsible Minister also apply to the gambling sector and must be complied with. There are also other State and Territory legislation that will apply.

Federal

The following laws apply at the Federal level:

• Interactive Gambling Act 2001
• Interactive Gambling Regulations 2019
• Interactive Gambling (National Self-exclusion Register) Register Rules 2022
• Anti-Money Laundering and Counter-Terrorism Financing Act 2006
• Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No 1)

New South Wales

The following laws apply in New South Wales:

• Betting and Racing Act 1998
• Betting and Racing Regulation 2022
• Betting Tax Act 2001
• Casino Control Act 1992
• Casino Control Regulation 2019
• Community Gaming Act 2018
• Community Gaming Regulation 2020;
• Gambling (Two-Up) Act 1998
• Gaming and Liquor Administration Act 2007
• Gaming and Liquor Administration Regulation 2024
• Gaming Machine Act 2001
• Gaming Machine Regulation 2019
• Gaming Machine Tax Act 2001
• Public Lotteries Act 1996
• Public Lotteries Regulation 2016
• Totalizator Act 1997
• Totalizator Regulation 2022
• Totalizator Agency Board Privatisation Act 1997
• Unlawful Gambling Act 1998
• Unlawful Gambling Regulation 2021
• Bookmaker Declared Betting Events Betting Rules

The key regulatory bodies responsible for supervising gambling in Australia are:

• Australia-wide (Federal) – Australian Communications and Media Authority (ACMA) and Australian Transaction Reports and Analysis Centre (AUSTRAC);
• New South Wales – Liquor & Gaming NSW, the Independent Liquor & Gaming Authority, NSW Independent Casino Commission and the Department of Enterprise, Investment and Trade;
• Victoria – the Victorian Gambling and Casino Control Commission and the Department of Justice and Community Safety;
• Australian Capital Territory – the Australian Capital Territory Gambling and Racing Commission;
• Northern Territory – the Northern Territory Racing and Wagering Commission (NTRWC) and Licensing NT;
• Queensland – the Office of Liquor and Gaming Regulation;
• South Australia – Consumer and Business Services;
• Tasmania – the Liquor and Gaming Commission; and
• Western Australia – the Gaming and Wagering Commission and the Department of Local Government, Sport and Cultural Industries.

The Australian legislative framework for the gambling sector distinguishes between interactive (online) and land-based gambling: both are regulated at the Federal and State and Territory levels.

As indicated above, interactive (or online) gambling services are regulated at the Federal and State and Territory levels, while land-based gambling is regulated mostly at the State and Territory level. At the State and Territory level, the distinction is due in part to the different regulatory frameworks that exist for the different types of gambling services, such as casinos and gaming machines.

Generally, there is a prohibition under all Australian gambling legislation on the conduct and promotion of gambling. However, legislative exemptions exist for gambling activities that are conducted under a licence. These activities include:

1. lotteries (including instant or scratch lotteries (both in venues and online));
2. wagering and sports betting (both in venues and online);
3. slot machines, or ‘pokies’ (just in venues); and
4. land-based casinos where casino games, including poker, baccarat and blackjack (among others) can be played.

In addition, certain activities, such as trade promotions, charitable lotteries, raffles, bingo and football tipping can be conducted under State and Territory legislation. These activities are considered to be soft forms of gambling and are subject to specific restrictions and, in certain jurisdictions, are only able to be conducted where a permit has been issued by the relevant regulator.

It is generally understood under principles of Australian constitutional law that online gambling services provided under a licence issued in any state or territory of Australia are able to be provided to residents of other Australian states and territories. This principle was confirmed by the decision of the High Court of Australia in Betfair Pty Ltd and Another v. Western Australia (2008) 244 ALR 32.

Land based gambling licences

Land-based licences (including casinos, lotteries and retail betting) are generally difficult to obtain.

An exclusive licence has been granted in each state or territory to conduct off-course betting in retail venues. Similarly, an exclusive licence has been granted to provide lottery products (which are available for sale by retailers, principally in newsagents).

Further, licensed venue operators are permitted to conduct land-based machine gaming (such as slot machines, known in Australia as poker machines). These venues include casinos, pubs and clubs. The sole exception to this principle is in Western Australia, where gaming machines are only permitted in casinos. Certain restrictions are imposed on the operation of gaming machines by licensed venue operators, such as caps on the total number of machines in any particular venue, locality or in the jurisdiction as a whole. The regulatory regime in respect of gaming machines differs substantially from jurisdiction to jurisdiction.

Until recently, there was a limited number of casino licences granted in each state and territory. However, in recent years, this exclusivity has been relaxed.

The licences for land-based gaming services are typically granted on a long-term basis (e.g. 20 years) and often involve the payment of substantial licence fees and taxes.

Interactive (online) gambling licences

The Northern Territory is the leading online gambling licensing authority in Australia, and there is no limit on the number of online licences that may be granted by the Northern Territory regulator.

Generally speaking, licensed operators may offer remote or online gambling services in the form of sports betting and wagering, the sale of online lottery tickets and online keno games. No distinction exists between the online platforms or devices on which a gambling product may be offered to customers.

The duration of an online gambling licence varies; however, for operators licensed in the Northern Territory, it is generally a maximum term of 20 years.

Other licences

Depending on the gambling service, ancillary licences may be required in addition to the principal licence granted to the operator to conduct the gambling business.

For example, in addition to those operators that conduct gambling activities in a casino or other land-based venue, separate licences are required to be held by some B2B providers, including manufacturers and suppliers of gaming machines, as well as testing agents.

These ancillary licences are more readily available. They are not usually granted for a specified period and are valid until the gaming machine licence is surrendered or cancelled. In some cases, these are for a specific period, and must be extended or renewed, as appropriate.

Further, some B2B providers (including software suppliers) will not generally require a licence to offer their services to Australian operators. The B2B’s systems may, however, be subject to review or approval processes as a condition of the licence granted to the B2C operator that uses their system.

As mentioned above, there is a general prohibition under Australian law on the conduct and promotion of gambling – the IGA prohibits the supply of online gambling services (such as online casino games and online poker) to persons resident in Australia.

However, this prohibition does not apply to other types of gambling services provided online under a licence granted in an Australian State or Territory. The exception that exists in the IGA which permits the provision of online wagering services by a licensed operator does not extend to online in-play sports betting. That is, the ability of wagering operators to provide in-play sports betting is restricted to bets placed over the telephone or in venues.

Licences granted to Australian operators to provide gambling services online often impose restrictions on the manner in which the licensed operator may conduct its gambling business. For example, gambling operators licensed by the NTRWC are required to locate various aspects of their gaming operations in the Northern Territory. In addition, various restrictions exist at the state or territory level that apply to licensed online wagering operators (even where based in another state or territory). These restrictions set out mandatory requirements relating to advertising and pre-commitment as well as a requirement to pay a point of consumption tax in respect of bets made by residents in that state or territory.

The process involved in applying for a licence to conduct a gambling business in Australia will depend on the type of licence and the jurisdiction in which it is sought. However, the documentation required for Australian land-based or online gambling licences are generally similar.

In order to be eligible to obtain a licence, applicants must be registered in Australia as a corporate entity under the Corporations Act 2001 (Cth). In addition to the eligibility requirement, an applicant must demonstrate the financial viability and suitability of the applicant company, its shareholders and directors, and that of the holding companies and ultimate beneficial owners. This will generally involve a due diligence process. The applicant (and its corporate group) is generally required to provide the following information:

1. the applicant’s certificate of registration and a copy of its constitution;
2. a business plan;
3. prescribed financial information (including assets, liabilities and financial forecasts);
4. legal and regulatory compliance information;
5. technical (systems) or venue documentation;
6. the current prescribed licence fee; and
7. a Deed of Release and Authorisation to enable the regulator to conduct all necessary inquiries.

For land-based licences, this may also entail further examination of details of the premises to be used to offer the gambling services.

Generally, the regulatory and licensing authority in each jurisdiction will require any person or company associated or connected with a gambling operation to be the subject of a probity investigation to determine their suitability.

Whether a person is sufficiently associated or connected with the gambling operation (to be the subject of a probity investigation) is usually determined at the discretion of the authority. This may extend to directors, officers, employees and any person or company with a direct or indirect ownership interest in the applicant. In some instances, employees or persons involved in the day-to-day operation of the company will need to undergo a separate licensing process (eg, as a key employee).

Probity investigations can be onerous and will usually require the person or company being investigated to disclose sensitive information, including in relation to litigious matters and, in some cases, complete financial records, including a current statement of assets and liabilities.

The timing of the licensing process will vary depending (again) on the type of licence and the jurisdiction in which the licence is being sought. For example:

1. For an online gambling licence granted in the Northern Territory, the process will typically take a period of three to six months. The application fee is AUD$29,000; and
2. The probity process involving land-based casino licenses may involve a period of over a year. These licences are typically granted on an exclusive (or limited) basis. Applicable fees may be substantial.

As mentioned above, key employees or individuals sufficiently associated or connected with a gambling operator (known as a close associate), are required to hold a separate key person licence, or at least be approved by the regulator prior to commencing their role. This includes an individual that is:

1. a shareholder, director or executive officer of the licensed operator; and
2. involved in the management or operation of the business of the licensed operator and has a significant influence over the licensee’s business.

Separately, a personal licence may be required in respect of gambling operators/venues which are land-based, eg, gaming machine technician licences.

The application process for a personal licence or approval requires the completion of an application form. The details that are required for a personal licence (eg, a key person licence or gaming machine technician licence) are less onerous than the details required to be submitted for a key employee or close associate that will be the subject of a probity review (to be associated with the ownership or directorship of a licensed operator) in connection with an operator’s gambling licence. The application process is likely to also require that fingerprints are provided for the purposes of conducting background checks and providing police certificates.

Generally, advertising of gambling services offered by operators licensed in Australia is permitted (subject to strict requirements). Pure branding (ie, the display of a logo) is not usually considered advertising (and is permitted), but this will depend on the context.

However, there is a complex arrangement of rules that regulate the advertising of gambling, including in state and territory legislation, which varies from jurisdiction to jurisdiction and gambling product to gambling product. In addition, there are relevant industry and media codes, as well as more broadly applicable laws, such as federal consumer protection laws (which prohibit misleading and deceptive conduct), anti-spam laws and privacy laws.

For example, in respect of online wagering operators, there are overlapping requirements under state and territory laws which make it an offence to publish or otherwise advertise online wagering services that, among other things:

1. encourage a breach of the law;
2. depict children under the age of 18, or target children under the age of 18;
3. suggest that winning will be a definite outcome of participating in gambling activities, or exaggerate claims relating to winning;
4. suggest that participation in gambling activities is likely to improve a person’s prospects;
5. promote the consumption of alcohol while engaging in gambling activities;
6. are offensive, or are not published in accordance with decency, dignity or good taste; or
7. offer an inducement to participate, or participate frequently in a gambling activity, including an inducement to open a betting account.

Further, there are strict laws that apply specifically to advertising of online wagering operators – this includes:

1. restrictions on advertising published in traditional media, such as on print, television and radio advertising. Restrictions are imposed on wagering operators in respect of the advertising of live odds during sporting events and the promotion of gambling services on television and radio during peak times.
2. the National Self-Exclusion Register (BetStop) prohibits online wagering and telephone-based operators from sending electronic marketing material and making telemarketing calls to an individual who is registered with BetStop.
3. requirements to include a prescribed responsible gambling tagline and call to action (ie, responsible gambling helpline phone number and website information) in any advertising material. The tagline that must be included depends on several factors, including the format and duration of the advertisement and the platform to which the advertisement is published.

Land-based advertising in pubs, clubs and hotels where retail betting is offered is also subject to strict restrictions

Advertising of prohibited gambling operators

The IGA prohibits the publication in Australia of any advertisement (writing, still or moving picture, sign, symbol or other visual image, or audible message (or any combination of two or more of these things)) that either gives publicity to or is intended to promote:

1. prohibited or unlicensed online gambling services;
2. the whole or part of a trade mark in respect of a prohibited or unlicensed online gambling service;
3. a domain name or URL that relates to a prohibited or unlicensed online gambling service; or
4. any words that are closely associated with a prohibited or unlicensed online gambling service (whether or not they are also closely associated with other kinds of services or products).

This prohibition generally applies to the advertising of gambling services that are prohibited or unlicensed, or of offshore gambling operators.

Gambling marketing affiliates are generally permitted under Australian law, provided they comply with relevant federal and state, and territory laws and regulations.

At the federal level, affiliates that promote illegal online casinos or offshore gambling services are in breach of the IGA. The Federal regulator, the ACMA, actively investigates and enforces actions against such affiliates. In recent years, ACMA has:

1. Issued formal warnings to affiliate operators.
2. Requested ISPs to block access to non-compliant affiliate websites.
3. Prioritised enforcement against affiliates posing as independent reviewers.

State and territory regulators oversee gambling advertising and marketing of licensed gambling operators, including affiliate arrangements. For example, in the Northern Territory, a licensed bookmaker or betting exchange must request the NTRWC’s prior approval for any partnerships entered into where the licensed operator provides compensation to the other party for the referral of customers to the licensed activities of the licensed bookmaker or betting exchange. If an arrangement with an affiliate satisfies these requirements, prior approval is required from the NTRWC.

The penalties that apply to the offer, provision or facilitation of the provision of, a prohibited gambling service varies between the Federal legislation and State and Territory legislation and will depend on the type of unlawful gambling service being provided or advertised (and in turn, which law has been breached).

Generally, penalties are much lower for contravention of state and territory laws than federal laws (ie, the IGA). For example, the following penalties apply at the Federal level:

1. The provision of (or the facilitation of the provision of) a prohibited interactive gambling service will attract the following penalties:
   – criminal offence – for an individual, up to AUD$1,650,000 per day, or up to five times that for a corporation (ie, AUD$8,250,000 per day); or
   – civil offence – for an individual, up to AUD$2,475,000 per day, or up to five times that for a corporation (ie, AUD$12,375,000 per day).
2. The publication (or the facilitation of the publication) of marketing or advertising materials relating to a prohibited interactive gambling service will attract a fine of up to AUD$59,400 for an individual and AUD$297,000 for a corporation.

Individuals

Generally, liability is placed on the operator of a prohibited gambling service rather than the customer for the participation in such services. However, liability may be placed on individual users of gambling services in limited circumstances. For example, the gambling legislation in New South Wales and Western Australia prohibits the placement of a bet on an Australian race with an unlicensed wagering operator. Notwithstanding these prohibitions, it unlikely from a policy perspective that authorities will prosecute individuals under these provisions.

A licensed gambling operator will be subject to various ongoing requirements to demonstrate ongoing suitability to hold a gambling licence (or be an associate of a gambling licensee). The requirements are imposed by the relevant regulatory authority and very between States and Territories, and between gambling activities. Generally, the requirements relate to ongoing reporting and disclosure obligations.

The key anti-money laundering legislation is the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). This is supplemented by the Anti-Money Laundering and Counter-Terrorism Financing Rules Instrument 2007 (No 1) and the Anti-Money Laundering and Counter-Terrorism Financing Rules 2025 (the AML/CTF Rules). The AML/CTF Act and AML/CTG Rules set out various requirements and prohibitions aims at prohibiting and restricting money laundering and terrorism financing in Australia. The regulator, AUSTRAC, is established by the ACL/CTF Act and monitors and enforces the controls set out in the AML/CTF Act and AML/CTF Rules. Gambling (excluding the provision of a lottery service) is considered a “designated service” under the AML/CTF Act. As a result, licensed gambling operators are considered “reporting entities” and are subject to obligations under the AML/CTF laws. These include:

1. enrolling with AUSTRAC;
2. preparing and implementing an AML/CTF program – the program must include:
   – a risk assessment;
   – senior management or board approval and adoption of the program;
   – appointment of an AML/CTF compliance officer;
   – an employee due diligence program;
   – a risk awareness training program for staff;
   – procedures for ongoing customer due diligence – including collecting and verifying “know your customer” information;
   – a process for independent reviews of the program;
3. adopting risk-based systems and controls for mitigating and managing money-laundering and terrorism-financing risks associated with the designated service, including adopting know-your-customer (KYC) requirements;
4. reporting suspicious transactions, and certain business activities and transactions;
5. keeping records;
6. submitting annual reports to AUSTRAC; and
7. staff training.

Online wagering operators are also required to verify a new customer prior to providing a designated service. This means online wagering operators must conduct customer identity verification prior to opening an account for a new customer.

AUSTRAC has remained active in its review and enforcement of gambling operators. It has commenced Federal Court of Australia proceedings and taken other enforcement action, including the initiation of various investigations in respect of gambling operators and venues (including casinos) and wagering operators.

There have been recent amendments to the AML/CTF Act. However, many of the changes will come into force on either 31 March 2026 or 1 July 2026.

Responsible gambling requirements are a key component of the federal and state/territory gambling regulation framework.

At the federal level, the National Consumer Protection Framework (NCPF) sets the national policy between the Commonwealth and state/territory governments for consumer protection relating to interactive wagering. There are ten NCPF measures; these include:

1. a restriction on inducements;
2. an obligation to verify customers;
3. a requirement to provide responsible service of online gambling training to staff;
4. a requirement to provide activity statements to customers;
5. the implementation of consistent gambling messaging;
6. voluntary opt-out and pre-commitment tools; and
7. BetStop – the Self-Exclusion Register.

At the state/territory level, responsible gambling requirements that apply to land-based gambling operators vary depending on the type of licence held by the operator, and on the jurisdiction in which the operator is licensed. Generally, a gambling service provider will be required to display certain responsible gambling messages and warnings in designated areas, and to provide customers with:

1. an option to self-exclude from the gambling services provided by an operator;
2. options for imposing voluntary pre-commitment limits; and
3. information about responsible gambling support services.

In South Australia, there is a requirement that venues operating more than 30 gaming machines must have facial recognition technology to identify problem gamblers.

Several jurisdictions publish responsible gambling codes of practice or require relevant licensed operators to institute a responsible gambling code. Victoria, for example, requires organisations holding a gambling industry licence to have in place a Responsible Gambling Code of Conduct under the Gambling Regulation Act 2003.

The disclosure requirements for acquisitions of an interest and/or a change of control in respect of a shareholding interest in a gambling operator vary between each Australian State and Territory (and between each type of gambling operator). Accordingly, it is necessary to refer to the provisions of the relevant legislation in the state or territory in which the relevant entity holds a licence.

In any event, most licensing authorities retain the discretion, either under the relevant legislation or licence conditions, to require that a licensee disclose, or seek approval for, any change in their direct or indirect ownership structure. These requirements apply regardless of whether the operator is a public or private company, or a passive investor.

However, in practice, regulatory authorities will ordinarily conduct a full probity investigation into a shareholder that acquires an interest directly or indirectly of more than either 5 per cent or 10 per cent of the issued shares in the company. Passive investors will not usually be excluded from the requirements relating to change of control if they exceed the percentage threshold.

The probity and suitability thresholds have been strengthened recently, as a result of enquiries into the suitability of persons associated with licensed land-based casino operators across Australia.

Gambling licenses granted to operators are personal and cannot be transferred.

The Federal gambling regulator, ACMA, has broad investigative and enforcement powers under the IGA, including powers to:

1. issue formal warnings;
2. issue infringement notices;
3. notify the Department of Home Affairs (Australia’s immigration and border protection agency) of the names of directors to be included on the Movement Alert List;
4. impose pecuniary penalties;
5. impose directions;
6. impose cease-and-desist orders;
7. notify foreign regulators of the operator’s breaches of the IGA; and/or
8. seek an order from the Federal Court of Australia for the imposition of substantial civil penalties.

The enforcement powers of state regulators vary. In general, state and territory regulators have broad investigatory and enforcement powers and can:

1. require the supply of documents and information;
2. commence civil and criminal proceedings;
3. conduct licence reviews; and
4. where required, vary licence conditions, or suspend or cancel the licence.

When considering whether to impose sanctions (eg, suspending or revoking a licence, or varying licence conditions), regulators will consider the administrative and legislative tools that they have at their disposal for implementing and enforcing these sanctions. All state-based regulators have the authority to take enforcement action against wagering operators.

The NSW regulator, LGNSW, is the most active regulator when it comes to taking enforcement action regarding advertising breaches by online wagering oeprators. When determining the relevant penalty, a court will take into consideration various factors, such as:

1. the medium of the publication;
2. the intended audience and context of the advertisement;
3. whether persons were actually induced by the advertisement (ie, whether they signed up for an account);
4. the offending history/record of the publisher; and
5. the number of people in NSW who viewed the advertisement.

A separate penalty may be imposed for each separate publication.

Gambling taxes vary greatly depending on the type of gambling service and the jurisdiction in which it is provided. Generally, specific taxes will be payable to the relevant regulatory body as a percentage of net or gross revenue. The tax applied may also be metered for fixed revenue brackets, or increase year on year under the licence conditions.

For example, the gambling tax that is applicable to gambling operators licensed in the Northern Territory is as follows.

1. For online gaming – the tax rate is 50% of net profits. There is no cap on the maximum tax payable per financial year.
2. For the bookmaker ‒ the tax payable is:
   – 5% of net profits or commissions; and
   – capped at AUD2.9 million per financial year.

An online wagering operator, irrespective of the jurisdiction in which it is licensed, will also be subject to a point-of-consumption tax. This is charged based on net wagering revenue in the following states and territories (subject to certain thresholds being achieved):

1. South Australia – 15%;
2. New South Wales – 15%;
3. Victoria – 15%;
4. Queensland – 20%;
5. Australian Capital Territory – 25%;
6. Western Australia – 15%; and
7. Tasmania – 15%.

All the above taxes are calculated in a slightly different manner.

An online wagering operator will also be required to pay product fees to Australian sporting and racing bodies (for the rights to take wagers on sports matches and races).

In addition to specific gambling taxes, operators will also be required to pay corporate taxes and goods and services tax (GST).

The Federal government is currently considering implementing further advertising bans in response to the 2023 ‘You Win Some, You Lose More’ report, which recommended a blanket ban on online gambling advertising in Australia.

Further details are expected in the next 6 to 12 months.

There have been recent amendments to the AML/CTF Rules, and, following the consultation processes, the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024 (the AML/CTF Amendment Bill) was introduced into Federal parliament and received royal assent on 10 December 2024. However, many of the changes will commence on either 31 March 2026 or 1 July 2026.

The three main objectives of the AML/CTF Amendment Bill are:

1. to extend the AML/CTF regime to services provided by Tranche 2 entities (eg, lawyers, accountants, trust and company service providers, real estate professionals, and dealers in precious metals and stones);
2. to modernise the regulation of virtual assets and payments technology; and
3. to simplify and clarify the AML/CTF regime in order to increase flexibility, reduce regulatory impacts, and support businesses to prevent and detect financial crime.

The AML/CTF Amendment Bill also introduced material amendments relating to AML/CTF program requirements, risk assessment requirements, internal AML/CTF policies, initial/ongoing customer due diligence processes, and increases AUSTRAC’s investigative powers.

The general trend in Australia is towards a more restricted gambling market.

For example, the Report from the Federal government’s inquiry into whether the regulatory framework for online gambling and gambling advertising in Australia is fit for purpose and meeting community expectations (the 2023 ‘You Win Some, You Lose More’ Report) set out 31 Recommendations for changes to be made in the gambling industry to minimise gambling harm). The recommendations are being considered by the Federal government and there is a likelihood that many of the recommendations will be implemented – these include recommendations such as:

1. the establishment of a federal gambling regulator with a broad suite of powers to monitor online gambling and ensure compliance and take enforcement action;
2. a total ban on gambling advertising of online gambling operators;
3. the implementation of minimum bet limits for online wagering at a Federal level; and
4. various obligations imposed on online gambling operators to monitor and reduce problem gambling.

However, Australia is a mature gambling market and, while there are restrictive measures in place for the operation of a gambling business, the gambling market remains strong. It is important for gambling businesses to respond to this regulatory and social risk by proactively demonstrating compliance and effective harm minimisation measures.

Whilst Australia is a mature gambling market, and established gambling businesses perform well, it is difficult for a start-up to commence business in Australia. There are multiple barriers to entry into the Australian market for traditional gambling operators, most notably the costs involved (with both setting up business and ongoing operational costs).

However, having said that, there are opportunities for start-up gambling businesses to establish a presence in Australia, particularly where those businesses are not traditional gambling operators. For new market entrants of innovative gaming products (including those that utilise new technologies in non-traditional applications), the Australian regulatory framework is less rigid than for traditional gambling businesses, and there is opportunity to engage with regulatory authorities to establish a business that remains within the parameters of the regulatory framework.