Key Moments:
- Regulators have escalated enforcement against social media influencers promoting prohibited gambling services in Australia
- Instances of influencers allegedly receiving over $50,000 in cryptocurrency for Rainbet promotions have come to light
- New restrictions on online gambling advertising are set to take effect from 1 January next year
Growing Regulatory Focus on Influencer Promotions
A wave of Australian social media influencers has increasingly been embedding promotional content for illegal offshore gambling platforms within what appear to be standard lifestyle and entertainment posts. This approach, which often incorporates brief segments featuring gambling apps, makes it challenging for both moderation systems and audiences to distinguish paid sponsorships from regular content. The strategy closely mimics subtle product placements, allowing hidden promotions to fly under the radar.
Rainbet Emerges as a Key Player
One prominent name showing up in these campaigns is Rainbet, a cryptocurrency casino headquartered in Curaçao and banned from offering its services to Australians. According to industry sources, Rainbet has engaged creators with audiences predominantly made up of young men. Reports indicate that some influencers were offered compensation exceeding $50,000 for three Instagram Stories, with payments made in cryptocurrency and additional commissions tied to successful referrals.
Instagram creator Chrogman, who has an audience of over 1.4 million followers, was linked to Rainbet promotions. In one video highlighted during the period reviewed by AdNews, Chrogman urged his followers to challenge him to a fight—an ongoing motif in his content—while displaying Rainbet branding. That post is no longer viewable by Australian users, who are now shown a notice that Meta restricted access due to a legal request. Neither Chrogman nor Rainbet provided comment when approached. AdNews learned that the Australian Communications and Media Authority (ACMA) was already aware of Chrogman’s relationship with Rainbet prior to the removal of the content in Australia.
Regulatory Actions Intensify
Regulatory agencies have moved from issuing warnings to taking enforcement measures. Earlier in the year, Ad Standards found that a separate Instagram post promoting Rainbet violated Section 2.7 of the Australian Association of National Advertisers’ Wagering Code. The content showcased an influencer gambling in a bid to pay rent, capturing their reactions to blackjack games as part of a recurring online series.
This month, ACMA announced what it called its first enforcement action against an influencer for violating Australia’s online gambling advertising regulations, signaling a decisive shift toward holding individuals accountable alongside operators. The regulator stressed that offshore gambling sites present a significant risk to Australians, as they frequently evade the reach of Australian law, making traditional enforcement like court orders or fines less effective. Website blocking has thus become a cornerstone of ACMA’s strategy, leading to the blocking of more than 1,560 illegal gambling and affiliate domains since late 2019.
ACMA has also joined forces with technology companies and hosting services to take down gambling promotions and has begun sending compliance alerts directly to influencers to warn them of possible legal ramifications.
Industry and Legal Perspectives
Technology platforms have responded in various ways to regulator pressure. TikTok stated that its policies ban user-generated gambling ads, only permitting approved paid ads aimed at users aged 18 or older, with frequency controls and opt-out options. TikTok added that its practices align with Australian requirements. Meta did not comment.
Regulatory responsibility is not limited to communications authorities. The Australian Competition and Consumer Commission emphasized that influencers, advertisers, and companies must all ensure their promotions adhere to local laws, including refraining from misleading statements about the legality or safety of gambling services. The ACCC also cited efforts by the National Anti-Scam Centre to combat fraudulent online gambling schemes, sometimes called “scambling,” which may target First Nations Australians in particular.
Ongoing community unease over gambling promotion is evident, with Ad Standards stating: “public research continues to rank gambling promotions as Australians’ biggest advertising concern,” and noting its mandate to assess compliance of gambling ads with responsible content codes.
Legal and Compliance Risks
Legal experts caution that influencers risk significant financial penalties for promoting forbidden gambling services. BlackBay Lawyers senior associate Isabella Orlic said creators have substantial sway, especially among younger audiences, and must proceed with added vigilance before agreeing to sponsor gambling brands.
Australia’s Interactive Gambling Act 2001 bars the advertising of certain interactive gambling products to local customers, stipulating civil penalties up to $2.73 million for intentional breaches. Although the law provides a possible defense if a promoter genuinely did not—and could not reasonably have—known the targeted service was illegal for Australians, Orlic warned this is a difficult standard to meet. She explained that professional creators are generally expected to perform due diligence, such as seeking legal counsel, reviewing obligations, verifying advertising compliance, retaining relevant records, and ensuring gambling operators possess licenses required for legal operation in Australia.
Impending Policy Changes
The spotlight on influencer-driven gambling promotions comes as Australia prepares to introduce new federal restrictions. Beginning 1 January next year, most online gambling advertising will be barred unless users have both confirmed they are at least 18 years old and chosen to opt in. The forthcoming reforms will also ramp up initiatives to block unlicensed offshore gambling operators targeting Australians without local authorization, including platforms for casinos, sportsbooks, and wagering.
| Key Entities | Role | Action/Policy |
|---|---|---|
| ACMA | Communications Regulator | First enforcement action against influencer; website blocking program |
| Ad Standards | Advertising Industry Authority | Ruled influencer content breached Wagering Code |
| Rainbet | Offshore Cryptocurrency Casino | Promoted in influencer campaigns targeting Australians |
| Chrogman | Instagram Influencer | Featured Rainbet in posts; content restricted by Meta |
| ACCC | Consumer Regulator | Warning on compliance for advertisers/influencers |
| National Anti-Scam Centre | Fraud Prevention | Identifies emerging scambling schemes |
- Author
Daniel Williams
