Australian Gambling Market Leaders

Gambling in Australia appeared more than 300 years ago, when the first settlers stepped ashore. Over the entire period of the existence of the country gambling business has received large-scale development, and the population supports the progress, involving in a gambling pastime. Both land and online casino Australia, as well as lotteries, races and sweepstakes are popular.

According to the statistics, every adult resident spends $ 1,300 on gambling, which makes a total of about $ 5 billion a year. The main players are men and women aged 35-39 years, whose annual income is equal to $ 100,000.

This situation makes the country attractive for land and online casino operators, which are licensed by the local authorities and operate legally. At the same time, the shadow market of the sector, which does not pay the due taxes to the budget of the country, actively operates.

Legislative initiatives and new requirements

This situation causes concern on the part of the authorities, who take all kinds of measures to regulate the market and prevent people’s gambling addiction. For this purpose, a number of laws are adopted and new initiatives not yet adopted are being developed.

The main law regulating the gambling business is the Interactive Gambling Act, adopted in 2001. Sixteen years later, in 2017, amendments were made to increase the requirements for licensees. The reason for this was to limit the influence of the gambling industry in the market and to reduce the involvement of the population in gambling. Such measures were taken even despite the fact that the budget received serious amounts from tax collections.

In total there are four packages, for which deductions to the budget are levied:

• Sales tax – it is levied on gambling games such as: sweepstakes, lottery tickets, bookmaking, etc.
• Player’s loss tax – is imposed on sports betting, casino, sweepstakes, etc.
• Net income tax – calculated on income earned from online poker, investment sweepstakes.
• Licensing fees – casino, lotteries, bookmaking, bingo, etc.

How to get a gambling license in Australia

Every year the country is getting tougher rules for gambling permits.To get a permit to operate, companies need to carefully study the laws of the country. 

The fact is that Australia consists of states and several mainland territories. Each individual region has the right to set its own requirements for the licensee, however, all have the same basic conditions:

• cooperation with law enforcement agencies;
• monitoring the security of financial transactions;
• limitation of deposits in order to prevent money laundering;
• availability of professional staff;
• implementation of preventive measures against crime and addiction.

It is more difficult for foreigners to get a license than for local businesses, for this purpose it is recommended to enlist the support of Australian companies.

It is worth noting that iGaming in the country is completely prohibited, the exceptions are online lotteries, racing, sports betting. But even for them there are special conditions – the betting must not be done in live mode.

Licensed local companies are not allowed to provide their services in other countries, while foreign ones are able to host their services, offer slots, online poker and other card games, etc.

Leaders of the Australian gambling market

Due to the constant attempts of the authorities to tighten the rules for obtaining licenses and the lack of clear legislation, which is often supplemented by changes, several serious brands, such as PokerStars and Gaming Innovation, left the market. But the demand for gambling among the population does not decrease, so there are still large companies that are active in the country.

These include brands that provide different types of gambling, let us get acquainted with the most famous Australian companies, known to almost everyone in the country.

Tabcorp

It is one of Australia’s largest companies, employing about 5,000 people. Since its appearance in 1961, it has grown into a corporation that includes a host of brands and smaller companies. In different years there have been major acquisitions of operators such as Structured Data Systems, Jupiters, Star City Holdings and many others. And since 2017, there has been a merger with another major brand, Tatts Group.

The company’s activities are related to the provision of lottery, keno, betting and other gaming products. Since recently, some sectors have been separated into a particular business, such as the sphere dealing with lotteries and casinos. 

The company operates legally and has obtained all necessary licenses from the state, including a 15-year monitoring permit and a new Victorian wagering license. 

Tabcorp is a major taxpayer, contributing a solid portion of its net profits to the government. Its shares are listed on the Australian Stock Exchange.

The divisions that make up the company are:

• The Lott – provides more than 12 types of lotteries to players, including Super 66, Lotto Strike and Keno. In 2018, it paid out more than $2.7 billion in winnings. Lotteries are available at 3,700 locations across the country. More than a billion dollars in taxes were paid to the state.
• TAB – the brand is involved in betting, being the largest operator in the industry, taking 57% of the country’s total revenue in this business. It has 4,400 sites with more than $1 billion in turnover to do business.
• MAX — provides gaming products and services at 3,500 venues nationwide.

In 2021, the company’s owners announced their intention to split the business into separate divisions Lotteries & Keno and Wagering & Gaming.

Paddy Power Australia Pty Limited

It is part of the Irish company Flutter Entertainment, on the Australian market it is represented by the bookmaker Sportsbet. The main activity is accepting bets on various events, including sports, political and other events. 

Paddy Power was founded in 1988, the head office in Australia is located in Melbourne. The brand is considered a foreign resident, and pays taxes to the local budget. The annual turnover is $1.2 billion, as evidenced by the 2020 financial report.

The corporation includes 20 companies and employs over 800 people. The Sportsbet division is one of the largest betting operators, allowing you to bet on sports such as:

• Horse racing;
• Racing;
• Greyhound racing;
• Cricket;
• Soccer;
• Basketball – USA;
• Rugby League;
• Boxing;
• Golf.

The company has specialized in betting, online and over the phone, for more than 15 years. Its betting turnover is $780 million a year.

Another brand that is part of the corporate family is IAS, registered in 1994. The company offers the following types of services:

• investment wagering;
• horse racing sweepstakes;
• ratings analysis. 

IAS also owns information platforms, publishes racing and sports news, helpful tips, guides, and racing results and highlights.

Racing and Wagering Western Australia

This is the largest company in Australia, which is engaged in comprehensive work in the sports betting industry and directly specializes in harness racing and dog racing. However, the RWWA‘s activities are not limited to this, other industries are also included:

• registration of ownership transfer of animals participating in sporting events;
• registration of leasing contracts, masties;
• issuance of breeding documents and licensing of individuals.

Information services about disqualifications, injuries, participant disqualifications, approved equipment, and veterinary services are also included in the scope of activity.

The TABtouch service provides the opportunity to make predictions without leaving home, using your phone in online mode.

A separate division deals with insurance and counseling concerning purebred animals.

There are working groups dealing with individual breeds, types of animals participating or preparing for competitions.  

The company’s aim is to develop the horse racing industry in the country, and through the payment of all taxes fairly, to ensure the financing of sport in Western Australia.

The company prioritizes values related to fair play, transparent policies and improved service quality, and open interaction with users. To this end, preference is given to specialists in recruitment who will be interested in promoting the culture.

Specifics Of Gambling And The Favorite Gambling Entertainment Of Australians

The first event associated with a gambling event officially dates back to 1810. It was a horse race in Sydney. Already in the 1880s, the first lotteries appeared, and only many years later, in the 50s of the twentieth century, slot machines in pubs began to be installed.

Online casinos are still a new hobby for Australian gamblers, but they have quickly become popular and sought after by millions of gamblers. The first online casino opened in the mid-90s.

Favourite games of Australians

Roulette and card games such as blackjack and baccarat are favored by most. Craps are no less popular. Poker, lotteries and sports betting are next in demand.

It is noteworthy that Australian gamblers are developing their own game, such as crab races, camel racing and guinea pig racing. Unfortunately, such entertainment is outside the legal field, so you can’t find it in the official register.  

In Australia, there is a date, April 25, when players gather in bars and take turns flipping two coins. This is called Orlyanka and is very popular with visitors. Each participant makes a bet, and the winner is the one who guesses which side the tossed coin will fall on.

Prospects For The Development Of Australian Gambling

Income from the gambling industry generates a substantial increase in local budgets. Each state has its own rate, and, accordingly, different revenues. But on average, deductions from the gambling industry account for about 10% of the entire treasury.

To compare the two states, you can take as an example the state of Victoria, in which the income from games makes 13%, but in Western Australia hardly reaches 4%. The reason is that in the latter most of the games remain illegal.

Despite the funds received, the country is struggling with both illegal sites and gambling addiction. As such, new initiatives are coming out to improve the business industry. For example, since 2017, in order to play a slot machine in the bar, the customer must provide a document confirming his identity, and then be instructed about the dangers of addiction.

From 2019 it is planned to create a special registry, which will include data of persons subjected to gambling addiction. The National Banking Association, supporting the aspirations of the authorities, has warned of credit card restrictions on casino deposits.

In South Wales the authorities want to introduce a gambler’s card, which will allow them to control financial transactions that should help to identify illegal operators working unlawfully. 

All these actions will affect the development of gambling industry and will make the process of casinos legalization in the country even more difficult. Because of this, the budget is losing about $300 million each year and the trend continues to grow. Being an attractive market for gambling business, Australia stays uncomfortable with legal platforms, we can only hope that the situation will change soon.