Online Gambling Regulations, Laws and Taxes in Australia

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Published: July 14, 2020
Updated: April 2, 2026

Australia is a country with one of the highest proportions of gamblers on earth. Online gambling, especially, is incredibly popular down under. Statistics show that about 80% of Australians gamble online at least once a year.

With such high rates, it was expected that the world’s top online casinos would try to get into the blooming market. However, the landscape has changed and now more limits have been put in place. Aussie players can now enjoy only a limited range of games.

Online gambling regulations, laws and taxes in Australia

With everything happening in Australia, it can leave players confused about the legalities of online gambling. In this guide, we take a look at the history of gambling in Australia, its current laws, and how they affect players.

The history of gambling in Australia

In the past, the law had a little bit of a grey spot when it came to online gambling. Players were free to enjoy most forms of it to their heart's content.

Since 1901, punters could indulge in gambling especially card games and horse racing.
The government announced their first lottery gaming system in the 1920s as a way to cash in on some revenue from this popular pastime.
In the 1970s, slot machines and casinos became the next big thing.

Throughout the years, the Australian government has done everything possible to try to regulate gambling. The only downfall was the constant growth and improvement of technology and trends.

As such, the government has had a long-term battle with online operators, especially international casinos. In more recent years, however, it has slowly started to gain control and introduced legislation to change the look of gambling there.

The Interactive Gambling Act passed in 2001 and seemed to satisfy most parties. An entire decade passed before any major changes were brought in. Upon review in 2011, the IGA received only recommendations for tweaks and updates. Everything changed in 2016.

The current laws on online gambling

Alan Tudge became the Minister of Human Services in 2016. Tudge was determined to take the bull by the horns, as one of his biggest tasks was to get the nation’s billion-dollar gambling industry up to modern standards.

In that year, he introduced new legislation, which was reviewed before being passed into law in 2017.

The Interactive Gambling Act Amendment Bill of 2016 placed stringent regulations on the otherwise out-of-control iGaming industry provided by offshore gambling operators since those were not subject to Australian gambling laws.

The Bill wasn’t yet fully passed before many major operators made the decision to withdraw from the Australian market.

The new Bill required all offshore gambling operators to be licensed for iGaming within Australia. Without a license, their services are rendered illegal.
All operators who violate this are subject to blacklisting, their IP addresses being blocked, and travel restrictions placed on their officers, as well as other “significant penalties”.
The amendment bill also banned virtual sportsbooks from making credit line offers to players or offering them free bets. The bill also bans any and all gambling advertisements during live sports events.
Players are no longer able to bet on a sporting event while that game is in progress. The bill also brought changes allowing sports bettors to voluntarily join an online self-exclusion register for a period of three months or more.
In addition, it forced online bookmakers to offer a pre-commitment scheme to their players.

The new Bill isn’t all that bad, as it simply aims to increase the regulation of the online gambling market rather than destroy it. Offshore operators will still be able to provide their services to Australian players if they go through the procedure of getting licensed by the country's local regulators.

While some might consider such laws merely as a warning rather than serious, the Australian government has gone to great lengths to show that they are not playing around.

Of course, the sudden withdrawal of offshore online casinos left many players in a panic and struggling to get back the money still in their accounts. It just goes to show that the new law was to be taken very seriously.

Are gambling winnings taxable in Australia?

No, your gambling winnings will not be taxed in Australia.

The implementation of the new Interactive Gambling Bill got many players confused about taxes. However, the Australian government has refrained from taxing players on gambling winnings. The main reason for this is that gambling is considered a hobby or recreational activity.

The government doesn’t consider winnings as income but rather the result of good luck, and instead of taxing players, they tax operators.

To this date, it is still the same. Even with the new IGB implemented, players are not taxed on any of their winnings as long as they are obtained from a secure and legal site.
Operators, on the other hand, have seen an increase in the level of tax they are required to pay in order to lawfully provide their services to citizens in Australia.

Speculators believe that this is also one of the main reasons why plenty of online operators have opted to completely withdraw from Australia.

Is online gambling legal in Australia?

Yes, but only in casinos that hold the correct license according to the Australian government.

The current gambling laws are quite clear in their determination to keep illegal gambling at bay and protect players from harm or the development of a possible gambling problem.

For instance, in March 2026, the government hed into a major reset of its entire AML policy to better protect players with earlier identification of risks, quicker verification, and detection of suspicious behaviours right away.

In simple terms, any sites offering real-money casino games to Australians are considered illegal, especially if they don’t have the correct licensing. The government has made it clear that they will take serious steps against all transgressors. Fortunately, this does not apply to Australian citizens.

You, as a player, can still participate in online gambling, and no harm will come to you.
However, you can't use credit cards, digital wallets, or digital currencies to place your bets. These are now banned by the Australian Government for any type of wagering, except the National Lottery.

If you want to bet online, it would be wise, though, to choose from the selected online casinos that have been deemed safe to play at.

Especially considering the strong laws and regulations regarding online gambling, it’s best to play responsibly at a site that is guaranteed to pay out your winnings and provide you with a fair and secure gambling experience.