Australia’s wagering industry, a significant contributor to the country’s economy and a pillar of the racing and sports sectors, faces unprecedented challenges as new regulatory measures loom, according to Responsible Wagering Australia (RWA) CEO Kai Cantwell.
In an interview with AGB, Cantwell voiced concerns over the potential impacts of recent regulatory changes, particularly those targeting advertising and inducements.
“RWA and our members advocate for a sustainable, safe, and enjoyable wagering industry that protects customers, supports the racing, broadcast, and sports industries, and contributes significantly to the Australian economy and broader community,” Cantwell stated.
RWA is the independent peak body for Australian‑licensed wagering service providers (WSPs). Members include Australia’s leading WSPs — bet365, Betfair, Entain, Sportsbet, Pointsbet and Unibet.
Cantwell argueed that overregulation, including bans on advertising and inducements, could have devastating consequences.
“The evidence is clear that overregulating legal providers through measures such as bans on advertising would have devastating impacts on the safety of punters and the economy,” he noted.
The RWA CEO underlined that the number one reason people turn to offshore markets is to access products that aren’t available onshore.
“Australia’s offshore market already makes up 25 percent of the entire market, and if the proposed bans were introduced, Australia would lose billions of dollars in tax revenue. Governments would lose all oversight of the industry, and Australians would be gambling in dangerous illegal markets where they aren’t offered any protections, and sports integrity and money laundering issues are rife,” he points out.
To mitigate these risks, Cantwell stresses the importance of collaboration between the government and the wagering industry. “It is crucial for governments to collaborate with the wagering industry to enact balanced reforms that achieve harm reduction outcomes while supporting the livelihoods dependent on the wagering industry,” he said.
Regulatory Landscape and Industry Response
Recent years have seen the Australian online wagering industry implement world-leading consumer protection measures. These include prohibitions on lines of credit, payday lending services, and enhanced age and identity verification procedures.
Additionally, restrictions on incentives, mandatory voluntary deposit limits, and a National Self-Exclusion Register are part of the Commonwealth Government’s National Consumer Protection Framework (NCPF).
“Online gambling is the safest form of gambling as Wagering Service Providers (WSPs) can identify unusual behavior and intervene before harm occurs.”
Kai Cantwell
A legislated review of the NCPF is set to commence shortly, with Cantwell noting that the RWA is looking forward to engaging in the evaluation process to ensure that they are “fit-for-purpose and achieving the desired harm reduction outcomes.”
In 2023, a Federal Government inquiry report recommended banning advertising and inducements alongside other harm minimization measures. While RWA supports some recommendations, such as cracking down on illegal offshore providers, it warns against blanket bans.
“If these bans were introduced, Australia would lose billions of dollars in tax revenue. Governments would lose all oversight of the industry, and Australians would be gambling in dangerous illegal markets,” Cantwell explained.
Economic and Social Implications
For Cantwell the potential economic impact of these regulatory changes is significant. “Introducing blanket bans would be extreme overreach and would strip hundreds of millions of dollars from sports and broadcasters,” Cantwell warned.
He added that this money supports regional broadcasters, local grassroots, and professional sports, sports integrity programs, and Australian content.
Australian wagering providers already pay some of the highest taxes in the country, with Point of Consumption Tax (POCT) rates recently increased in some states and territories.
“Higher POCT rates reduce capacity for direct investment in racing, investment in promotions and generosities, marketing of the codes, lead to shorter odds for customers and lower overall turnover, ultimately significantly impacting racing funding and Government revenue,” Cantwell noted.
“RWA and our members support sensible reform by reducing gambling advertising across all mediums through measures that focus on reducing the exposure of kids and vulnerable groups to advertising, such as a ban on radio ads during school pick up and drop off times and caps on the number of ads that are allowed on TV each hour. RWA and our members have already significantly decreased levels of advertising in 2023 and 2024.”
Credit card ban and offshore market
On June 11th, 2024, a ban on using credit cards for online gambling in Australia also took effect, with RWA advocating for the implementation of this ban because “we know that Australians should only be gambling with their own money,” notes the expert.
Addressing this issue, Cantwell called for the measure to be extended to all forms of gambling, including keno and lotteries, to ensure consistent protections.
“Research indicates that the offshore market, which currently constitutes 25 percent of the entire Australian market, is expected to cost the economy more than AU$500 million ($336.24 million) in lost tax revenue from 2024 to 2028,” he highlighted.
In contrast he pointed that the UK has a wide product availability and will only lose AU$46 million ($30.9 million) to the offshore market over the same period due to more extensive product availability.
RWA also supports harmonizing regulations across federal, state, and territory jurisdictions, with Cantwell believing that consistent regulation will simplify the landscape for WSPs, governments, and punters.
“Sports integrity bodies have been clear that their outcomes are best met through a nationally consistent approach,” he said.
“The success of the NCPF has proven that states and territories and the Commonwealth can come together and adopt uniform standards to achieve greater consumer protection measures for Australian consumers of wagering”.
