• Online Casino Australia Laws 2020
• Online Casino Australia Laws 2019

The complex laws behind online poker in Australia Written by News Company In recent years, the Australian government has tightened laws around gambling, particularly online gambling through the introduction of the Interactive Gambling Amendment Bill in 2016. As we’ve come to know, Australia has only one act that regulates gambling activities, and it should concern operators more than punters. In other words, if you were wondering whether or not you could get into trouble for gambling online, the answer is no. There is no law that can prosecute you for placing bets online.

1. Australian gambling laws were quite lenient in the past, allowing for brick-and-mortar establishments and some online gambling options. The current legal gambling framework still permits brick-and-mortar gambling, but online options are scarce due to tighter restrictions.
2. Australian gambling laws were quite lenient in the past, allowing for brick-and-mortar establishments and some online gambling options. The current legal gambling framework still permits brick-and-mortar gambling, but online options are scarce due to tighter restrictions.

Online gambling started out as an unregulated industry. The first step in the process of bringing legitimacy to the industry was the creation of online gaming commissions. Many started in island nations.

These include Malta, Gibraltar, Alderney, Isle of Man, Curacao and Kahnawake.

These jurisdictions are still by and large involved in online casino regulation. But over time, regulation of online gambling, and the development of law surrounding online gambling, has become an area of interest for larger economic powers.

Below is an overview of how online gambling is handled in a variety of major international jurisdictions.

UK online gaming regulation

The United Kingdom was the first country to address this situation. The UK Gambling Commission was created through the Gaming Act of 2005 and oversees remote gaming. This combined all gaming in the United Kingdom under one regulator. Online gaming under the jurisdiction of the Gambling Commission includes online poker, casinos, sports betting, bingo and keno.

The UK Gambling Commission created a tax on internet gaming but it had a loophole. Only companies located in the United Kingdom were required to be licensed. This motivated companies that once calling UK home to migrate to tax havens.

These offshore companies were not just evading taxes, but there were also player disputes that UK regulators could not intervene with due to a lack of jurisdiction. These two issues pushed the country to revisit its online gaming licensing process.

Any company that now operates in the UK must be licensed by the Gambling Commission. There is 15 percent tax on all gaming win, known as a point of consumption tax. The Gambling Commission also has jurisdiction in gaming disputes.

This caused some remote gaming companies to leave the market. Others consolidated brands as each required licensing under the Act.

Canada online gaming regulation

Online Casino Australia Laws 2020

Canada is largely an unregulated country in terms of online gaming. Gaming regulations are up to the individual province. Provincial lotteries regulate online gaming in all jurisdictions where it is regulated. Poker, sports parlays and casino games are operated under a license where it is specifically approved.

Remote games are licensed under the lotteries in British Columbia, Manitoba, Ontario and Quebec.

British Columbia and Manitoba operate under the PlayNow brand. Ontario’s site is PlayOLG. Quebec’s is Espacejeux. These are the only sites operated and regulated by Canada governments.

Boss Media software is used by these lotteries. The poker sites between the lotteries are networked.

There are more than 100 other sites that accept Canadians. These are not licensed and there is little recourse if there is a dispute.

France online gambling

Online gambling in France is regulated by the Autorité de régulation des jeux en ligne. This translates into English as the regulatory authority for online games. It is typically referred to by the acronym ARJEL. It was created by the French Gambling Act in 2010.

ARJEL regulated all forms of online gambling. This includes poker, casino games and sports betting.

There are multiple criticisms of ARJEL. The tax rate is 44 percent. This is the highest of any country in the world. Only the tiny US state of Delaware has a higher rate, which is 45 percent, but 100 percent up to the $3 million in annual revenue.

This high tax rate is a burden on operators. This cuts into the marketing budgets. This is one reason there are virtually no affiliate deals in the French online gaming sector.

Another complaint by operators is that online poker in ring-fenced. Poker players in France may only play at sites that operate within the country’s borders. There is no access to international player pools on legal French sites. This hurts liquidity. It limits the game availability as well as the size of tournament prize pools.

Winamax is the largest operator licensed by ARJEL. Others include PokerStars, bwin.party and Playtech. These and other companies licensed by ARJEL will use a .fr domain.

Spain online gambling regulation

The Spanish Gambling Act nationalized regulation of the online gaming industry in Spain. It created uniform framework between all regions of the country.

Online poker, casinos and sports betting are regulated by a central authority. The tax rate is 25 percent. This is more reasonable than the 44 percent demanded in neighboring France, but it is still historically high compared to most other countries.

In addition to the high tax rate, online poker players receive a poor deal. The tax rate forces Spain’s regulated online poker companies to charge a higher rake than sites in other countries. Another issue is that Spanish online poker does not share liquidity with other countries. All Spain poker sites are ring-fenced within the country.

PokerStars.es is the largest poker site in Spain. Other Spanish operators include 888, Playtech, bwin.party and Boss Media. Licensed sites in Spain will use the .es domain extension.

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Italy online gambling regulation

Italy is another European country that strictly regulates its online gambling industry. Italy originally tried to block and blacklist companies from other EU nations that accepted Italian players. The EU Commission tossed out the blacklist and demanded Italy open its country to all companies licensed in the European Union.

Amendments to the Italian online gambling laws were made in 2009. The new regulations went live in 2010. This permitted companies outside Italy to receive an interactive gaming license. Games included poker, casinos and sports betting.

The first stage of online poker only permitted tournaments. This hurt popularity and drove players to underground sites. Cash games were later added to the available list of games. Licensed Italian poker sites are ring-fenced, meaning these platforms do not have access to player pools outside of Italy.

The tax rate is 20 percent in Italy. This is lower than other ring-fenced countries, but still higher than most jurisdictions.

PokerStars is the largest poker site in Italy. Other interactive gaming providers that hold an Italian license include Playtech, Microgame, Boss Media and bwin.party.

Online gambling regulation in the United States

Online poker and casino games are legal in three states. Delaware, Nevada and New Jersey each take a unique approach to its interactive gaming industry.

There are many similarities between the three states. Each requires players to be at least 21 years of age. Geolocation software pinpoints the device being used to log into the site. This ensures that players outside the jurisdiction cannot gain access. Each state regulates and taxes the activity.

There are also several differences. The tax rates differ between the states. Delaware uses the state lottery as the hub of the gaming. The other two states license outside companies. The games are also different between the jurisdictions.

Nevada online poker and sports betting

Nevada was the first state to legalize and regulate online gambling. It all started with online sports betting in 2010. Mobile apps and websites are permitted to accept wagers from anyone 21 years of age or older in Nevada at the time of initiating the action. CG Technologies, Leroy’s (now William Hill) and Station Casinos were all early entrants into that market.

Online poker was the next step for Nevada’s online gaming industry. It started on April 30, 2013 with the launch of Ultimate Poker. WSOP.com entered the market on September 17, 2013.

Real Gaming entered the Nevada online poker market in February 2014. Ultimate Poker shuttered in November 2014. Real Gaming struggled to draw a single game most hours of the day and folded in August 2016. WSOP.com now has a monopoly in Nevada.

Delaware and Nevada entered into a poker liquidity sharing agreement in February 2014. In March 2015, this went live. WSOP.com is the Nevada platform for this network. It connects to the Delaware Lottery’s poker network. New Jersey joined this network in May 2018.

Online poker and sports betting are the only two statewide forms of regulated online gaming. Both are available over the Internet and on mobile devices. Casinos may offer mobile casino games but only within the boundaries of their property.

The Nevada Gaming Control Board regulates online poker and sports betting in Nevada. It is the same gaming regulator that oversees Nevada’s bricks-and-mortar casinos. Nevada’s online poker and sports betting industry pays a tax rate of 6.75 percent.

Delaware online poker and casinos

Delaware was the second state to launch regulated online gaming. Casino games went live on November 1, 2013. The state’s online poker network launched the following week.

The Delaware Lottery regulates its online gaming industry. There are three skins on the platform: Delaware Park, Dover Downs and Harrington Raceway. All three are nearly identical. 888 provides the software for Delaware’s interactive lottery.

In addition to online poker, casino games are permitted. This includes slots, video poker and house-banked table games. The only two table games spread in Delaware at this time are blackjack and roulette. The casino software is limited in its game selection. Online and mobile apps are permitted as platforms. There is one video poker game and about a dozen slot titles bricks-and-mortar casino players will not recognize.

The tax rate for Delaware’s online gaming industry is effectively 100 percent due to its inability to generate more than $3 million in annual revenue. That rate lowers to 45 percent if the industry manages to break the $3 million annual threshold.

New Jersey online poker and casinos

New Jersey was the third state to enter the US regulated online gaming market. It permits online poker and casino games.

Atlantic City casinos are permitted to offer up to five brands on each bricks-and-mortar license. All New Jersey casinos partnered with software providers to power poker networks and casino platforms.

Borgata and Party Poker offer one poker network. WSOP.com and 888 paired for another one. PokerStars launched in 2016 with Resorts as its Atlantic City partner.

There are numerous casino brands in the New Jersey online casino market. These include Harrah’s, Caesars, 888, Tropicana, Virgin, Mohegan Sun, Resorts, Golden Nugget, Betfair, Borgata and Party.

Most platforms offer a unique aspect in terms of game variety. Most offer dozens of slot titles, multiple video poker games, blackjack, roulette, and a number of house-banked card games. Websites and mobile apps are acceptable platforms for New Jersey online gaming.

The New Jersey Division of Gaming Enforcement regulates the state’s interactive gaming industry. This is the same regulator that licenses Atlantic City’s eight casinos. The tax rate in New Jersey is 15 percent plus 2.5 percent to the state’s Casino Reinvestment Development Authority.

US Federal law regarding online gambling

Gambling law in the United States is an incredibly complicated matter, thanks in part to the awkward intersection of state and federal law on the issue.

Online Casino Australia Laws 2019

Below are some of the key federal laws that are often invoked in discussions related to online gambling; click on any to learn more about the law:

Images Martin Good / Shutterstock.com & gary718 / Shutterstock.com

Gambling is an activity undertaken by many Australians. Over 80% of Australian adults engage in gambling of some kind, which is the highest rate of gambling in the world.^[1] This number includes some 4% of the adult population who play the pokies once a week, accounting for some 62% of locals' annual gambling spend.^[2]

Gambling is a significant public health issue, with around 80,000 to 160,000 (or 0.5 - 1.0%) of Australian adults experiencing significant problems from gambling and a further 250,000 to 350,000 (or 1.4 - 2.1% of adults) experiencing moderate risks that may make them vulnerable to problem gambling.^[3]

Revenue[edit]

In 2015–16, gambling revenue made up 7.7% of state and territory taxation revenue. The rate was lowest in Western Australia (2.5%) and highest in the Northern Territory (12.0%). Gambling revenue made up 2.5% of total state revenue when other revenue sources were taken into account. The rate was lowest in WA (0.9%) and highest in Victoria (3.2%). Gambling revenue as a portion of state taxation revenue has fallen for all states and territories between 2006–07 and 2015–16.^[4]

Total Australian gambling revenue in 2008-09 was just over $19 billion and the share of household consumption was 3.1%^[3]

New South Wales[edit]

New South Wales has a long history of gambling; Australia's first official horse racing meeting occurred in 1810 at Hyde Park in Sydney; the first official Australian lottery occurred in 1881 at the Sydney Cup; and registered clubs operated the first legal poker machines in Australia from 1956.^[5]

Approximately 95,800 of 'pokies' are in NSW, a state total beaten only by Nevada, which operated 181,109 gambling machines in 2014.^[6]

Between 1 December 2017 to 31 May 2018 NSW Clubs made a net profit of $1,945,161,625 and hotels made a net profit of $1,169,040,731 from pokies alone.^[7]

Fairfield[edit]

Fairfield had the highest poker machine revenue in the state for 2013, generating $298 million in clubs and $93 million in pubs, from the start of the year to August.^[8] This figure is $123 million greater than the combined total of profits generated from poker machines in the City of Sydney.^[8]

Hunter Region[edit]

From January to March 2013 poker machines in the Hunter region had a turn over of $4.5 billion, showing an increase of $500 million since 2010.^[9] Daily figures show a spend of $12.5 million, working out to be $8682 per minute.^[9] The Office of Liquor Gaming and Racing found that Newcastle was the Hunter Regions most profitable location with the 3206 poker machines averaging $44,963 each.^[9]The top five most profitable clubs for gaming revenue in the Hunter region in 2010 were:^[10]

• 1. Western Suburbs Leagues Club (Wests), New Lambton
• 2. Wests (formerly Club Phoenix), Mayfield
• 3. Wallsend RSL & Community Club, Wallsend
• 4. Belmont 16 Foot Sailing Club, Belmont
• 5. Cardiff Panthers, Cardiff

The top five most profitable hotels for gaming revenue in the Hunter region in 2010 were.^[10]

• 1. The George Tavern, East Maitland
• 2. Bay Hotel Motel, Bonnells Bay
• 3. Hotel Jesmond, Jesmond
• 4. The Lake Macquarie Tavern, Mount Hutton
• 5. Warners Bay Hotel, Warners Bay

Central Coast Region[edit]

According to the latest figures from Liquor and Gaming NSW there are 4,046 poker machines in 39 clubs on the Central Coast, and 626 poker machines in 29 hotels; making a total of 4,672 poker machines on the Central Coast. That means 2.37% of the total number of poker machines in Australia are on the NSW Central Coast.^[11]

Gosford has approximately 1928 pokies, spread across 37 venues. That is the equivalent of one poker machine for every 71 adults. In 2010–11, venues in Gosford made approximately $95,865,000 in profit from pokies. That equates to $700 for each adult member of Gosford's population.^[12]

Wyong has approximately 2608 pokies, spread across 35 venues. That is the equivalent of one poker machine for every 47 adults. In 2010–11, venues in Wyong made approximately $123,159,000 in profit from pokies. That equates to $1,000 for each adult member of Wyong's population.^[12]

The Central Coast has a higher prevalence of problem gambling than the NSW average. Young men between the ages of 18-24 living on the Central Coast are the biggest players of poker machines in NSW and are the highest risk group for problem gambling.^[13]

In 2008 Central Coast Gambling Help carried out a survey of 200 young people aged from 13-24 and found:

• 96% of people from 18-24 had gambled for money or possessions
• 62% of those under 14 years old and 77% of those aged up to 17 had gambled for money or items, including mobile phones and MP3 players
• 25.5% of 14- to 17-year-olds and 55% of 18- to 24-year-olds had lost more than they had intended
• and 6% under 18 had played a poker machine^[14]

Regulatory authorities[edit]

Since the introduction of new gambling services, including online gambling, the Commonwealth has taken a more active role in the regulation of gambling, but the Australian gambling industry is also regulated by State and Territory authorities:^[15]

• Australian Capital Territory - ACT Gambling and Racing Commission
• New South Wales - New South Wales Office of Liquor, Gaming and Racing
• Northern Territory - Licensing Commission
• Queensland - Office of Liquor and Gaming Regulation
• South Australia - Independent Gambling Authority
• Tasmania - Tasmanian Gaming Commission
• Victoria - Victorian Commission for Gambling and Liquor Regulation
• Western Australia - Department of Racing, Gaming and Liquor

Key legislation[edit]

Traditionally gambling has been legislated at a state and territory level rather than by the Commonwealth:^[16]

• Australian Capital Territory
  • Betting (ACTTAB Limited) Act 1964
  • Casino Control Act 2006
  • Gaming Machine Act 2004
  • Interactive Gambling Act 1998
  • Lotteries Act 1964
  • Pool Betting Act 1964
  • Race and Sports Bookmaking Act 2001
  • Racing Act 1999
  • Unlawful Gambling
• New South Wales
  • Betting Tax Act 2001
  • Casino Control Act 1992
  • Charitable Fundraising Act 1991
  • Gambling (Two-Up) Act 1998
  • Gaming and Liquor Administration Act 2007
  • Gaming Machines Act 2001
  • Gaming Machines Tax Act 2001
  • Liquor Act 2007
  • Lotteries and Art Unions Act 1901
  • Public Lotteries Act 1996
  • Racing Administration Act 1998
  • Registered Clubs Act 1976
  • Totalizator Act 1997
  • Unlawful Gambling Act 1998.
• Northern Territory
  • Gaming Control Act 2005;
  • Gaming Machine Act 2005;
  • Northern Territory Licensing Commission Act 2001;
  • Racing and Betting Act 2004;
  • Soccer Football Pools Act 2004;
  • Totalisator Licensing and Regulation Act 2004; and
  • Unlawful Betting Act 2004.
• Queensland
  • Brisbane Casino Agreement Act 1992
  • Breakwater Island Casino Agreement Act 1984
  • Cairns Casino Agreement Act 1993
  • Casino Control Act 1982
  • Charitable and Non-Profit Gaming Act 1999
  • Gaming Machine Act 1991
  • Interactive Gambling (Player Protection) Act 1998
  • Jupiters Casino Agreement Act 1983
  • Keno Act 1996
  • Lotteries Act 1997
  • Wagering Act 1998.
• South Australia
  • Authorised Betting Operations Act 2000
  • Casino Act 1997
  • Gaming Machines Act 1992
  • Lottery and Gaming Act 1936
  • State Lotteries Act 1966
• Tasmania
  • Gaming Control Act 1993
  • TT-Line Gaming Act 1993
• Victoria
  • Casino control Act
  • Casino (Management Agreement) Act 1993
  • Gambling Regulation Act 2003.
• Western Australia
  • Betting Control Act 1954
  • Bookmakers Betting Levy Act 1954
  • Casino (Burswood Island) Agreement Act 1985
  • Casino Control Act 1984
  • Gaming and Betting (Contracts and Securities) Act 1985
  • Gaming and Wagering Commission Act 1987
  • Gaming and Wagering Commission (Continuing Lotteries Levy) Act 2000
  • Racing and Wagering Western Australia Act 2003
  • Racing and Wagering Western Australia Tax Act 2003
  • Racing Restriction Act 2003
  • Racing Bets Levy Act 2009

Online gambling[edit]

The Interactive Gambling Act (2001) was passed by the Australian Commonwealth Parliament on 28 June 2001.^[17] It received assent on 11 July 2001^[18]

The Act is targeted at online gambling operators, making it an offense for them to offer 'real-money' online interactive gambling to residents of Australia. It also makes it illegal for online gambling operators to advertise 'real-money' interactive gambling services (such as online poker and casino) to Australian citizens.^[17]That being said, the amount spent on online gaming by Australians reached some $800 million by 2010, according to the official 2010 Productivity Report of the Australian Government.^[2]

Accessing and using the interactive gambling services is not an offence. It is also allowed to companies based in Australia to offer their gambling services to gamblers located outside Australia with the exception of those countries that were called 'designated countries'.^[19]

Taxation laws on gambling in Australia[edit]

Gamblers' winnings in Australia are not taxed. There are 3 main reasons for that:

• Gambling is not considered a profession, it's treated as a hobby or recreational activity.
• The Australian government views gains from gambling activities not as income, but as a result of good luck. Even if someone wins big, they also lose a lot in other gambling sessions.
• The government taxes gambling operators instead.^[20][21]

Taxation of gambling operators in Australia differs from state to state and different gambling services are taxed in a different way. There are taxes on the turnover, on player loss and net profit. As gambling operators need to obtain a license to offer their services, certain fees must also be paid at this stage of gambling business development.^[22]

The use of different tax rates and tax bases makes it difficult to compare taxes across states. For example, the ACT's keno tax rate of 2.53% of turnover is equivalent to a tax rate on gross profits of 10.12%.^[23]

Tax rates (2015–16)^[24]

See also[edit]

References[edit]

1. ^Bryant, Nick 'Australia in thrall of gambling mania', BBC, 30 January 2007
2. ^ ^abAustralian Gambling Habits
3. ^ ^abProductivity, Commission. 'Productivity Commission Inquiry Report'. pc.gov.au/. Australian Government. Retrieved 22 January 2015.
4. ^Fourth social and economic impact study of gambling in Tasmania (2017), Volume 1: Industry trends and impacts(PDF). ACIL Allen Consulting. pp. 57–60. Retrieved 17 January 2018.
5. ^Australian Institute of Gambling Research. 'Australian Gambling Comparative History and Analysis'(PDF). www.vcgr.vic.gov.au. Victorian Casino and Gaming Authority. Retrieved 29 January 2015.
6. ^Ziolkowski, S. 'The World Count of Gaming Machines 2013'(PDF). www.gamingta.com. The Gaming Technologies Association. Retrieved 29 January 2015.
7. ^McNally, Caroline. 'Gambling in Australia'. problemgambling.net.au. Central Coast Gambling Help.
8. ^ ^abNeedham, Kristy. 'Punters in west pile money in pokies', 'The Sydney Morning Herald', Australia, 23 March 2014. Retrieved on 10 September 2014.
9. ^ ^abcPage, Donna. 'Hunter punters blow $8682 a minute on pokies', 'Newcastle Herald', Australia, 4 October 2013. Retrieved on 9 September 2014.
10. ^ ^abPage, Donna.'How the Hunter gambled $4bn', 'Newcastle Herald', Australia, 26 July 2010. Retrieved on 9 September 2014.
11. ^Office of Liquor and gambin NSW 2018 https://www.liquorandgaming.nsw.gov.au/resources/gaming-machine-data
12. ^ ^abMarkham, Francis. 'Who wins big from gambling in Australia'. theconversation.com. The Conversation. Retrieved 29 January 2015.
13. ^ACNielsen. 'Prevalence of Gambling and Problem Gambling in NSW – A Community Survey 2006'. www.olgr.nsw.gov.au. NSW Office of Liquor, Gaming and Racing. Retrieved 29 January 2015.
14. ^McNally, Caroline. 'Gambling in Australia'. problemgambling.net.au. Central Coast Gambling Help. Retrieved 29 January 2015.
15. ^Parliament Library: Gambling Policy and Regulation
16. ^Australian Gambling Statistics, 1986-87 and 2011-12, 29th Edition, 2004, p. 7.
17. ^ ^abInteractive Gambling Act Receives Assent
18. ^Interactive Gambling Act 2001: Compilation
19. ^Review of the Interactive Gaming Act 2001
20. ^Australia’s future tax system - Report to the Treasurer 2009^{[permanent dead link]}
21. ^Australian Gambling laws: Taxes
22. ^ ^ab'Australian Gaming Council: Gamblng Taxes'(PDF). Archived from the original(PDF) on 22 March 2012. Retrieved 3 November 2011.
23. ^Joint Select Committee on Future Gaming Markets: Final Report. Parliament of Tasmania. p. 146. Retrieved 11 January 2018.
24. ^Joint Select Committee on Future Gaming Markets: Final Report. Parliament of Tasmania. pp. Tables 6–10. Retrieved 11 January 2018.

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