Australia is confronting a dramatic escalation in its illegal offshore gambling market, with new data showing losses have more than doubled since 2019. Research conducted by H2 Gambling Capital for Responsible Wagering Australia (RWA) found that Australians are now losing $3.9 billion each year to unlicensed overseas gambling platforms, a figure expected to rise to $5 billion by 2029. The expanding market now represents 36% of all online gambling in the country.

The financial consequences extend well beyond player losses. Governments risk almost $2 billion in lost revenue over the next five years, along with close to $800 million in forgone product fees for sport and racing. Racing alone is projected to lose between $110 million and $135 million every year due to wagering taking place offshore, while annual losses related to sport are predicted to reach $40 million by 2029.

Consumer Risks and Regulatory Gaps Deepen

The report highlights that the people most affected by illegal offshore sites are consumers themselves. Without the safeguards embedded in Australia’s regulated system—such as safer gambling tools, real-time monitoring, and intervention protocols—players face heightened vulnerabilities. According to RWA CEO Kai Cantwell, “Unlike licensed operators, who use data to identify and support at-risk customers, illegal sites use it to target vulnerable Australians and minors with high-risk offers and exaggerated bonuses.”

Alarmingly, half of all Australians gambling offshore were registered with BetStop, the national self-exclusion register intended to block them from onshore wagering. The report notes that 50% of offshore gamblers were able to bypass BetStop entirely. Cantwell stressed in the official media release that “Australia’s world-leading consumer protections are only effective if people stay within the system, and right now, it’s too easy to bypass them offshore with a few clicks.”

Around one in three offshore bettors also used credit to gamble—despite the practice being illegal in Australia since mid-2024. Meanwhile, 60% of respondents said they had been exposed to offshore advertising, and 44% reported they could not easily distinguish legal websites from illegal ones.

A separate detailed analysis by H2 Gambling Capital, commissioned by RWA, reinforces these findings. One in five sports bets in Australia is now placed with offshore providers, while 14% of all racing wagers occur with unregulated overseas operators. These operators often function from tax-light jurisdictions such as Curaçao, and in some cases operate in “grey” or pre-regulated territories. Many offer online casinos, live in-play betting, and cryptocurrency wagering—products either banned or tightly restricted in Australia.

Drivers of Offshore Gambling and Industry Concerns

When surveyed, Australian offshore gamblers identified better odds (48%) and bonuses (44%) as the biggest motivators for betting with illegal websites. Access to live in-play betting, which is restricted domestically, was cited as critically important by many respondents.

RWA argues that the illegal market grows partly because offshore operators avoid the tax, compliance, integrity, and responsible gambling obligations required of licensed Australian companies. This allows them to offer more aggressive promotions and a wider range of products, drawing consumers away from regulated platforms.

There are also significant integrity risks. The report cites concerns that illegal markets lack local oversight, making it difficult to monitor suspicious betting activity. The absence of transparency, according to the research, undermines confidence in racing and sporting outcomes. While licensed operators contribute hundreds of integrity reports each year, offshore counterparts provide no such data.

The parliamentary inquiry into online gambling recently called for a phase-out of advertising and inducements, but the federal government has not yet responded to its recommendations. RWA, meanwhile, is pushing for more robust enforcement measures, including a national blacklist, stronger transaction blocking, and expanded powers for the eSafety Commissioner.

Cantwell warned that “Ensuring Australia’s onshore market stays competitive is essential, because if people can’t find the products or prices they want here, they don’t stop gambling, they just go offshore.” He added that “A strong, consistent national framework will protect Australians, preserve funding for sport and racing, and ensure initiatives like BetStop aren’t undermined by unregulated offshore sites.”