The Australian gambling market is one of the most successful in the world, with local residents spending $20 million on gambling activities every year. However, local operators are missing out on that revenue, as more and more players are spending their money at offshore gambling websites. According to a recent report in the Business Insider, offshore betting operators are attracting 14% of gambling profits away from local companies.
Many Australians are choosing to wager at online casinos that are operated by offshore companies instead of betting with locally-owned firms. Industry analysts have yet to determine a reason why Australian gambling dollars are being spent at offshore gambling sites, but we have a few speculations.
Local betting laws are quite stringent, and Australians may want to engage in gambling activities that are not available from operators that are locally-based and must therefore abide by these regulations. So, they are spending more time and money at offshore sites. However, while players believe that they are receiving more benefits from offshore operators, there are some potential risks.
They are not regulated by Australian gambling laws, so the same consumer protection standards do not apply. “Because unlicensed offshore operators are not regulated to Australian standards, there are significant risks to consumers in terms of inadequate protection, as well as to the integrity of sport and racing,” says Paula Dwyer, Chairman of TabCorp. However, most offshore sites are regulated within their own jurisdictions.
Countries like Malta, Gibraltar and Antigua are all popular online gambling hubs, and they enforce strict laws for gambling operators. So, Australian players can still rest assured that they will not be cheated out of their hard-earned money. Still, it makes the case for online gambling regulation in Australia.
Local residents and operators would certainly benefit from online gambling being legalised in the country.
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