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iGaming in Australia – How the Online Gambling Industry is Growing

March 31, 2025 By Jonathan Roussel

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The iGaming vertical is one of the fastest growing digital industries, encompassing casinos, sports betting, cyber sports and lotteries. The global online gambling market was valued at $95 billion in 2024 and will grow to $153 billion by 2028.

Back in 2015, online casinos in Australia accounted for only 10% of the industry’s total turnover, but by 2024 the figure will exceed 30%. Especially popular are pokies, card games and live casinos with professional dealers. In this regard, Australian players can benefit from https://500rules.com/, a site dedicated to pokies, card games and other aspects of iGaming, which offers rules, strategies and betting tips.

iGaming In Australia – What Is It And Why Is It Popular?

Unlike traditional gambling, iGaming utilises online platforms and mobile applications to provide players with instant access to real-time betting, games and draws. The industry covers several segments:

  • Online casinos – pokies, table games, live casino with live dealers;
  • Poker rooms are digital rooms for playing poker against real opponents;
  • Sports betting – predicting the outcomes of sporting events, from football and tennis to horse racing and motor racing;
  • Cybersport – betting on matches on CS:GO, Dota 2, League of Legends and other popular disciplines;
  • Lotteries and bingos are digital versions of traditional gambling games with instant draws.

Contrary to popular belief, iGaming is not limited to casinos. Many players combine sports betting with poker or live casino games.

Why is Online Gambling So Popular?

The popularity of digital entertainment is due to several factors:

  • Accessibility and convenience. Online gambling works around the clock, without breaks and weekends. Users can bet from home, mobile device or computer. This is convenient in regions where there are no land-based betting shops and casinos.
  • Wide selection of games. Australian websites offer thousands of pokies, dozens of varieties of poker, blackjack and roulette. Major international casinos offer access to exclusive games and rare forms of betting.
  • Bonus programmes. Gambling operators are attracted by deposit bonuses, cashback, freespins and VIP programmes. For example, many casinos give away 100-200% on the first deposit or freebets for betting on popular tournaments and leagues in different sports.
  • Adaptation to the Australian market. Many overseas websites accept AUD, support local payment systems (PayID, POLi, Neosurf) and offer localised content. This enhances the gaming experience for local users.

Mobile Platforms as the Main Driver of Growth

Mobile devices have become the prioritised way to access iGaming in Australia:

  • 74% of all online betting is done from smartphones and tablets;
  • Most gambling operators have developed iOS and Android apps to play from a smartphone;
  • Support for instant payments via Google Pay, Apple Pay and cryptocurrency makes deposits and withdrawals easy;
  • Live casinos, mobile pokies and fast betting have become standard thanks to improved mobile technology.

Technological evolution has changed gambling in Australia. Online casinos now offer a fully interactive experience with live streaming, AI personalisation algorithms and advanced financial tools.

Australia and the Global Online Gambling Market

Australia ranks fifth in the world in terms of iGaming revenue, behind only the US, UK, Japan and China. According to H2 Gambling Capital, Australians spent more than AUD 8.5 billion on online casino games last year, and by 2027 spending will increase to AUD 12 billion.

Despite stricter gambling laws, iGaming’s share of the Australian market continues to grow. In 2018, online gambling accounted for 22% of the industry’s total turnover, and by 2024, the figure will exceed 30%. According to experts, this is due to the growing popularity of pokies, live casinos and sports betting.

Competition between Local Operators and International Platforms

Australian businesses face competition from international platforms. By law, local gambling operators can offer sports betting and lotteries, but online casinos and poker rooms are prohibited. Because of this, Australian players choose overseas sites that operate under licences from Malta, Curacao and the Philippines.

How local websites are trying to retain players:

  • Legal companies (Bet365, Sportsbet, Ladbrokes) offer extended betting lines and live betting;
  • Pokies and online games are distributed through clubs and land-based establishments, not the internet;
  • Mobile apps and marketing campaigns targeting localised users are used.

Despite the marketing, around 40 per cent of Australian punters bet on overseas platforms.

Impact of Asian and European Markets

The Asian market is influencing iGaming in Australia. This is due to the geographical proximity and popularity of gambling among Chinese, Japanese and Indian players. Many Asian platforms, such as Dafabet and 188BET, target Australians. They offer an English language interface, AUD support and convenient deposit methods (PayID, Neosurf, cryptocurrency).

European companies (Betway, Unibet, 888 Casino) compete for the attention of Australian players. They attract with a variety of games, advanced live shows and bonus programmes. Poker rooms and cyber sports betting, which are not regulated as strictly as casinos, are particularly in demand.

Legislation And Regulation

Australia controls gambling at the state and regional levels. Until the late 1990s, the legislation only covered land-based casinos, betting shops and lotteries. But with the development of the Internet, it became clear that a separate law for online gambling was needed.

In 2001, the Interactive Gambling Act (IGA) was passed, which became the main document regulating gambling in the country. It imposed severe restrictions on casinos and poker rooms on the Internet, but left loopholes for foreign companies that continue to accept Australian players.

What’s Allowed and What’s Prohibited?

Under the IGA 2001, it is prohibited in Australia:

  • Provide online casino, poker and pokies services by local gambling operators;
  • Promote and advertise unlicensed game websites;
  • Operating without an Australian licence (except for offshore companies).

However, the law does not prohibit Australians from playing on overseas sites that are not under Australian jurisdiction. As a result, most users register with casinos licensed in Curacao, Malta and the Philippines.

Only sports betting (bookmakers with a local licence), lotteries and bingo are legal. This category also includes social casinos, where bets are made in virtual currency rather than money.

Interactive Gambling Act 2001 – Key Limitations and Opportunities

IGA 2001 was adopted to protect citizens from unreasonable risks, but over time the provisions of the law had to be revised. In 2017, amendments were made to strengthen measures against illegal casinos:

  • ISPs have been ordered to block offshore sites operating without a licence;
  • Banks may refuse to process payments in favour of illegal gambling operators;
  • Introduced fines of up to AUD 1.1 million for companies offering illegal gambling.

Despite all the bans, the iGaming industry continues to grow. Players use VPNs, cryptocurrency and alternative payment methods to circumvent the restrictions.

Regional Differences

Gambling in Australia is regulated at both the federal and individual state levels. Some regions are more loyal to online gambling:

  • New South Wales (NSW) is the largest gambling market in the country, authorising sports betting and lotteries;
  • Victoria (VIC) – does not restrict casino operations, including Crown Melbourne, but online casinos are banned;
  • The Northern Territory (NT) is a licensing centre for betting platforms, allowing gambling;
  • Queensland (QLD) – does not restrict betting on horse racing and betting.

The rest of the states are mostly guided by federal restrictions, banning localised online casinos. But offshore companies offering games can serve Australian users without restrictions.

How Technology is Changing iGaming

technology igaming

Technology plays a crucial role in the development of iGaming. In recent years, blockchain, artificial intelligence (AI) and virtual reality have changed online gambling. It has become secure, interactive and personalised. The need for innovation is only growing, especially with Australia’s highly regulated gaming environment.

Blockchain and Cryptocurrencies in Gambling

The use of blockchain and cryptocurrencies is changing the structure of iGaming, offering anonymity, low fees and fast transactions. Australia has restrictions on bank payments for online casinos, and transactions in digital assets circumvent the ban.

How blockchain is affecting iGaming:

  • Transparency and fairness – smart contracts allow for automated payouts, eliminating casino influence on the outcome of the game;
  • Instant deposits and withdrawals – transactions in BTC, ETH, USDT take 10-15 seconds, while traditional payments through banks take 24-72 hours to process;
  • Data protection – blockchain technology eliminates third-party interference in players’ financial transactions.

Australian players are increasingly choosing cryptocurrency casinos licensed from Curacao, Malta or the Philippines as they offer bitcoin games, smart contract pokies and decentralised poker rooms.

Artificial Intelligence And Personalisation

AI has become an important tool in iGaming, allowing gambling operators to tailor sites to individual player preferences:

  • Personalised bonuses and promotions – algorithms analyse the user’s behaviour and offer promotions that match their playing style;
  • Anti-fraud systems – AI monitors anomalous bets and suspicious activity, preventing fraud;
  • Interactive live casinos – AI assistants help newcomers get to grips with the games by offering betting tips;
  • Responsible Gaming – Websites are implementing AI monitoring to detect signs of ludomania in a timely manner and suggest deposit limits.

Thanks to AI, players get a personalised interface and useful betting recommendations. This increases audience engagement and interest in new gaming products.

VR and AR Casinos – Perspectives on Immersive Gambling

Virtual (VR) and augmented reality (AR) technologies are transforming online gambling, bringing it closer to the experience in a real casino:

  • VR casino users can interact with the environment and other players through avatars;
  • AR effects available in mobile games complement the classic interface with new elements, such as 3D chips on the screen;
  • At interactive tables in poker, blackjack and roulette with an immersive experience, the player sees the gestures of other users.

For now, VR casinos remain a niche product, but with the development of 5G, cloud technology and affordable VR headsets, the popularity will grow. Australian gambling operators are already testing VR modes in live games, and providers like Evolution Gaming and NetEnt are investing millions of dollars in the development of the new trend.

The Financial Side of iGaming in Australia

Australia remains one of the largest iGaming markets despite heavy regulation. Pokies account for the largest share of revenue – around 30% of total turnover. The average annual gambling expenditure among Australian adults is 1,276 AUD, which is 1.5-3 times higher than in Europe and the US.

Average Checks and Betting Amounts in Different Types of Games

The amount of betting done by Australians is directly related to the category of games:

Type of game Average rate, AUD Frequency of bets
Poker machines 1-5 Up to 50 times an hour
Roulette and blackjack 10-50 5-10 times an hour
Online poker 20-100 1-5 times per hour
Live casino 10-100 5-10 times an hour
Sports betting 25-150 1-3 times a day

Pokies are one of the most popular forms of online gambling in the country. The stakes are low, but due to the low round length, users can play up to 600 spins per hour.

In sports betting, the average bet size is higher. Australians are more likely to place single bets and less likely to place 3-4 event spreads. In online poker, Australians prefer cash games and tournaments with stakes from 20 to 100 AUD, but professionals are happy to participate in tournaments with buy-ins from 500 AUD.

What Payment Methods Do Australian Players Prefer?

Since local banks often reject transactions in favour of gambling operators, players use alternative payment systems and services:

  • PayID – instant transfers through Australian banks. One of the most convenient ways for local users.
  • Neosurf are prepaid vouchers that allow you to top up without a bank card. Supported by many international casinos.
  • POLi is a banking service for instant transfers without entering card details.
  • Cryptocurrency (Bitcoin, Ethereum, USDT) – anonymous transactions that are not blocked by banks and allow you to bypass restrictions.

Cryptocurrency payments are in demand among players who prefer overseas websites. They provide instant transactions, low fees and no withdrawal restrictions.

The Future of Online Gambling in Australia

Australia has a tough stance on online casinos and poker, but market pressures and the growth of illegal iGaming are pushing for relaxed legislation. In 2023, the government launched an initiative to tighten controls on offshore platforms, but at the same time new licensing schemes are being considered to allow legal gambling platforms to offer enhanced services.

What changes are possible in the coming years:

  • Introducing licences for online casinos to keep revenues within the country rather than on foreign platforms;
  • Authorising digital poker, as some states in the US and Canada have done;
  • The development of regulated cryptocurrency casinos that will enable transaction tracking and reduce financial risks.

Experts predict that Australia could move to a hybrid system, with localised businesses gaining more rights and international sites being heavily filtered.

How will Player Behavior Change?

Over the past 10 years, Australian users have become more likely to choose mobile betting, cryptocurrency transactions and live gaming. In 5-10 years’ time, there may be a further change in habits:

  • The rise in popularity of micro betting – games with minimal investment and quick results will be a major trend;
  • Expanding social casinos – websites with in-game currencies and the ability to compete with other players without monetary stakes;
  • Automated strategies – AI will calculate optimal bets, managing the gameplay instead of the user.

The younger generation of players (18-35 year olds) will favour interactive formats, while traditional games (roulette, blackjack) are adapting to the new digital environment.

Let’s Summarize the Results

Australia is at the forefront of the interactive gaming industry. According to the Australian Productivity Commission, 80% of local adults regularly participate in gambling, making the country a world leader in iGaming engagement.

Mobile devices have been a key catalyst for growth. 74% of online bets are made from smartphones and tablets. Most gambling operators are adapting websites for mobile versions, releasing apps that support payments via PayID, POLi and cryptocurrency. At the same time, the government is tightening regulation, which creates a dual situation: players are moving to foreign casinos, while local gambling platforms are trying to adapt by offering new technologies and mechanics.

The country’s gambling market will change in the coming years. There may be relaxations in regulation, expansion of licensing and legalisation of certain forms of online gambling – digital poker and casinos with local licences.

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