A report by an independent Australian organization claims that illegal gambling in Australia could cost up to 3 billion dollars ($1.9 billion) in lost taxes and product charges. The report urges authorities to take the necessary steps to prevent these losses.
New Regulations Should be Evidence-Based
According to the Australia Offshore Wagering Analysis 2023 report, by 2027, racing and sports organizations in Australia will lose $1.6 billion ($1.1billion) in product fees. Another $1.3 billion ($861m) in taxes.
Kai Cantwell commented on the findings of the report. was recently appointed Chief Executive Officer for Responsible Wagering Australia.
He said that it was important that future reforms be balanced to prevent Australian players being forced offshore where there are fewer protections for them. He also stated that failure to maintain a sustainably-regulated sports betting industry could lead to a loss of significant economic benefits to Australia’s economy as well as the racing, sporting and broadcasting industries.
The report, prepared by independent data analytics company H2 Gambling capital for Responsible wagering Australia (the peak body of licensed wagering services providers in Australia), estimates that the offshore market is currently worth approximately 15% the total market.
Offshore operators offer Australians more competitive prices than their legal counterparts, mainly because they don’t have to pay taxes or product fees. The report highlights that offshore firms have aggressively targeted locals and the number of websites has almost doubled in the last four years.
Advertising Helps Players Recognize Offshore Firms
The report urges the maintenance of a fair and broad onshore licensing system which favors licensed operators, as it is difficult to eliminate an offshore market once it has been established. The data shows that not only is the offshore market established, but it’s growing.
The analysis states that if legal operators are prevented from advertising or marketing, it will negatively impact players as they won’t be able distinguish between legal websites and illegal ones.
Legal operators who do not advertise will be at a competitive disadvantage with their offshore competitors, as they use affiliate websites to promote their products and services. These affiliates are located overseas and are difficult to police.
Cantwell concluded that “RWA, its members and the government will continue to work together to discuss sensible measures to ensure that the six millions Australians who love to gamble can do so in a safe environment.”