Australia’s illegal offshore gambling market now worth US$2.5 billion annually, study finds
Summary
New research for Responsible Wagering Australia (RWA), carried out by H2 Gambling Capital, finds Australia’s illegal offshore online gambling market has more than doubled since 2019 to AU$3.9 billion (US$2.53 billion) in 2025 and is forecast to hit AU$5 billion (US$3.24 billion) by 2029. The study estimates 36% of online gambling by Australians in 2025 occurs offshore, with around a quarter of that on products not available legally in Australia such as online casino and live in-play betting.
Key Points
- Illegal offshore market value: AU$3.9 billion (US$2.53 billion) in 2025; projected AU$5 billion (US$3.24 billion) by 2029.
- 36% of Australian online gambling is conducted offshore in 2025; ~25% of that is on prohibited products (online casino, poker, live in-play).
- RWA warns governments could lose almost AU$2 billion (US$1.30 billion) in revenue over five years due to offshore operators.
- Annual losses to onshore racing and sport funding may reach AU$585 million by 2029, including AU$135 million from racing and AU$40 million from sport each year.
- Half of offshore gamblers had used the national self-exclusion tool BetStop, undermining its effectiveness.
- Offshore sites often offer live in-play betting, better odds and bonuses — key drivers pushing customers offshore.
- RWA highlights risks: lack of onshore safeguards, exposure to organised criminal networks, money-laundering and regulatory evasion.
Content summary
The H2 Gambling Capital study commissioned by RWA quantifies the scale and growth of offshore gambling used by Australians. Under current Australian law, only sports betting and lotteries are licenced online — other online products remain prohibited, pushing demand to offshore operators. The report links consumer preference for product variety (especially live in-play betting), attractive odds and bonuses to the shift offshore, and flags major public-interest consequences: lost tax and funding for sport and racing, and reduced effectiveness of harm-minimisation tools like BetStop.
Context and relevance
This matters to regulators, sporting bodies, racing industries and operators because the revenue and consumer protections that underpin onshore regulation are being eroded. The findings come amid broader international and domestic debates about modernising gambling regulation to reflect digital behaviour. If product availability and pricing onshore remain uncompetitive, demand is unlikely to decline — instead it will feed unregulated markets where consumer safeguards and responsible-gambling measures are absent.
Why should I read this?
Because it’s basically the shopping list showing why Aussies are slipping offshore — better odds, live in-play and stuff you can’t get at home. If you care about how much money sport and racing lose, whether BetStop actually works, or how regulators might need to change the law, this saves you the time of wading through the full report.
Author style
Punchy — the piece flags clear financial and social risks and pushes the urgency of a national, consistent regulatory response to protect revenue streams and gamblers.
