Key Moments:
- Australians currently lose A$3.9bn each year on offshore gambling sites, a figure projected to approach A$5bn within several years
- These offshore platforms now account for 36 percent of all online gambling activity in Australia
- Government tax revenue losses could reach nearly A$2bn in five years, with sports and racing facing a shortfall of about A$800m
Offshore Gambling Captures a Growing Market Share
Recent findings from H2 Gambling Capital have underscored a significant shift in Australia’s gambling sector. Offshore gambling websites have attracted a considerable portion of Australian players, with losses estimated at A$3.9bn annually. This amount is predicted to nearly reach A$5bn before the end of the decade, as more participants turn to unlicensed platforms.
These offshore operators now represent 36 percent of all online gambling conducted in the country, signaling major disruption for both regulators and licensed providers.
Economic Impact on Tax Revenue and Sports Funding
If the current pace is maintained, nearly A$2bn in government tax collections could be lost within five years. Sporting and racing bodies are preparing for an estimated A$800m shortfall, raising concerns given the sector’s mounting operational expenses.
The report highlights how offshore platforms circumvent many requirements enforced on licensed Australian operators, including measures such as customer identity checks, behavioral oversight, and harm prevention initiatives.
Illegal offshore betting is now costing Australian racing up to $135 million a year, with new analysis showing 14% of racing bets are being placed with unlicensed overseas operators.
The illegal market has surged to $3.9 billion annually and is on track to pass $5 billion by… pic.twitter.com/a3QyLQfiAr
— The Straight | Racing. Wagering. Breeding. (@TheStraightonX) November 21, 2025
Factors Fueling Offshore Site Popularity
According to RWA CEO Kai Cantwell, “many offshore platforms operate from jurisdictions with little oversight.” As a result, customers may have no recourse if their funds vanish or contact ceases with the operator.
The analysis indicates a concerning gap in the national self-exclusion system, BetStop. Half of Australians using offshore websites reportedly remained listed on BetStop at the time, pointing to the ease of sidestepping domestic protections.
Marketing Practices and Consumer Confusion
The research notes that illegal operators are increasingly using influencer campaigns, affiliate marketing, and substantial promotional offers to gain credibility. In response, the ACMA has increased enforcement against gambling-related influencer promotions.
Survey results reveal that nearly 50 percent of users find it challenging to distinguish between regulated and offshore gambling sites. Lacking tax or responsible gambling obligations, offshore brands use attractive bonuses, improved odds, and online casino options to attract users, presenting ongoing challenges for licensed competitors.
Regulatory Pushback and Ongoing Challenges
While the Australian Communications and Media Authority continues to block illegal gambling domains, new operators emerge rapidly. Ongoing enforcement, including domain blocks led by ACMA, aims to curb accessibility, though obstacles persist.
The RWA emphasizes the need for a collaborative strategy among financial entities, technology platforms, regulators, and the sporting sector to effectively combat the offshore gambling threat.
Industry Outlook
The current data points to an environment where the regulated sector is losing ground, diminishing the tax base and leaving vulnerable consumers exposed to riskier products. As offshore providers gain influence, the disparity between regulated protections and unregulated offerings is set to increase, raising critical questions regarding the industry’s long-term direction.
| Metric | Current Value | Projected Value | Timeframe/Comment |
|---|---|---|---|
| Annual Player Losses to Offshore Sites | A$3.9bn | Nearly A$5bn | Before end of decade |
| Share of Online Gambling Activity | 36% | – | Current |
| Government Tax Revenue at Risk | – | Nearly A$2bn lost | Within 5 years |
| Sports & Racing Sector Shortfall | – | A$800m | Future (unspecified) |
- Author
Daniel Williams
