According to a report by Responsible Wagering (RWA), illegal offshore gambling can cost Australians up to $3bn in lost tax (£1.60bn/€1.84bn).
The Australia Offshore Wagering Market Analysis 2023 was compiled by H2 Gambling Capital, a betting and gaming consulting firm on behalf of RWA.
H2 estimated between 2022-2027 that black market activities may cause a tax loss of up to $3.35bn. This combined with the estimated tax loss on grey markets of $3.31bn could result in a total loss of $6.67bn.
RWA stated that offshore operators offer better prices and are less restrictive in terms of consumer protection than licensed operators.
Kai Cantwell is the CEO of RWA. He said that in Australia, future reforms must be aimed at eliminating the offshore market.
Cantwell said that it is important to balance any future reforms and stop Australian players being forced offshore where there are few protections for the players.
The Australian economy as well as the racing, sporting and broadcasting industries could suffer a loss of significant economic benefits if a sustainable sports betting market is not maintained.
Reporting findings
The report found that Australia’s offshore illegal gambling industry is worth more than $1.1bn. This is estimated to be 15% of Australia’s total gambling market.
H2 estimates 92% of online market will be onshore by 2022. The onshore market has increased steadily since 2017 when it was estimated to be 82%.
The consultancy estimated that onshore racing will be 96% of all sports in 2022.
H2 estimated the GGR total for 2022 at $7.71bn and projected the GGR to grow further in 2023, reaching $7.85bn
In 2022, gross gaming revenues (GGR) are expected to reach $571m from black market activities. GGR for the grey market was $560m.
