New research commissioned by industry body Responsible Wagering Australia (RWA) has found that Australia’s illegal offshore gambling market has more than doubled to AU$3.9 billion (US$2.53 billion) since 2019 and is projected to reach AU$5 billion (US$3.24 billion) by 2029.
The study, conducted by H2 Gambling Capital for RWA, also indicates that 36% of all online gambling in Australia in 2025 is conducted offshore and that a quarter of this is on products that are unavailable legally such as online casino and live in-play betting. Under Australia’s antiquated gambling laws, sports betting and lottery are the only forms of licensed online gambling with other forms such as online casino and online poker strictly prohibited.
RWA said it expects governments to miss out on almost AU$2 billion (US$1.30 billion) in revenue over the next five years as a result of offshore operators, with annual losses to reach AU$585 million (US$377 million) by 2029 including AU$135 million (US$87.5 million) stripped from racing and AU$40 million (US$25.9 million) from sport every year.
The body noted that those using offshore sites have no access to the safeguards that exist onshore such as safer gambling tools and dedicated teams who monitor behaviour in real time.
“These operations are often controlled by organized criminal networks in tax and regulatory safe havens, exploiting loopholes to launder money and dodge sanctions,” said RWA CEO Kai Cantwell.
The study also found that 50% of Australians gambling on offshore sites have done so while registered on the government’s self-exclusion tool BetStop, undermining its effectiveness.
It also revealed the ability to place live in-play bets, currently only available via a phone call-in feature on licensed Australian sportsbooks, was the most influential overall factor for consumers in choosing offshore sites, alongside better odds and bonuses.
“Ensuring Australia’s onshore market stays competitive is essential, because if people can’t find the products or prices they want here, they don’t stop gambling, they just go offshore,” Cantwell added.
“A strong, consistent national framework will protect Australians, preserve funding for sport and racing, and ensure initiatives like BetStop aren’t undermined by unregulated offshore sites.”