Australia is facing a dramatic rise in offshore gambling activity, with new research showing that unlicensed operators now account for 36% of all online wagering across the country. The report—commissioned by Responsible Wagering Australia (RWA) and produced by H2 Gambling Capital—reveals that Australians are losing AU$3.9bn (US$2.6bn) each year to illegal gambling platforms, more than double the estimated level in 2019.
According to the projections, annual losses could escalate to AU$5bn (US$3.3bn) by 2029, putting significant pressure on public finances. Governments stand to forfeit nearly AU$2bn in tax revenue over the next five years, while sport and racing bodies could lose close to AU$800m in product fees during the same period.
The research links the rapid growth of offshore operators to their ability to offer better odds, larger bonuses, and access to prohibited products such as online casino games and live in-play betting. By 2029, losses for racing could hit AU$135m, while sports betting is projected to shed AU$40m annually to illegal platforms.
RWA chief executive Kai Cantwell described the environment as a “regulatory wild west,” noting that many offshore operations are tied to organised criminal networks operating from tax havens.
“Illegal providers exploit loopholes to launder money and evade sanctions,” Cantwell said. “Australia’s consumer protection framework only works when bettors remain within the licensed system—and right now, bypassing it is far too easy.”
One of the report’s most concerning findings is that 50% of Australians gambling offshore are registered on BetStop, the national self-exclusion system. While licensed operators use behavioural data to detect and support at-risk customers, illegal operators use the same data to aggressively target vulnerable players and even minors with high-risk offers.
Cantwell stressed that offshore platforms enjoy a significant and unfair competitive edge because they do not pay taxes, follow integrity rules, meet compliance obligations or invest in safer-gambling tools. This allows them to offer products and prices that regulated operators cannot legally match.
“If Australians can’t find the offerings they want onshore, they don’t stop gambling—they simply go offshore,” he warned.
The report also finds that the Australian Communications and Media Authority (ACMA) lacks sufficient enforcement powers to effectively disrupt illegal operators. It calls for a strengthened national crackdown, including enhanced blocking measures, centralised blacklists, improved payment monitoring, and deeper cooperation with banks, technology providers and foreign jurisdictions.
Cantwell concluded that Australia needs a unified national strategy to “cut off the lifelines that keep illegal operators in business” and shield consumers, sports and racing industries from mounting offshore risks.
