How To Get A Gambling License In Australia

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Overview

i Definitions

In general terms, for an activity to be classified as gambling in Australia, it must involve the staking of money or other valuable consideration of real-world value on the outcome of an event determined in whole, or in part, by chance and with the objective of winning a prize.

The actual gambling license to operate online gaming site is issued by many governments worldwide, but the most popular jurisdictions issuing such offshore gambling licenses are from the Caribbean and Pacific Island Governments such as Antigua and Barbuda, Costa Rica, St Kitts, Dominica, Curacau and Vanuatu.

1. All leading gambling businesses in Australia (many of whom are listed) conduct business under a licence granted by a state or territory government (or regulator). The principal licensed gambling.
2. The Gaming License is separate to the above courses. This licence is obtained through the Victorian Commission for Gambling Regulation. We go through the procedure to get your Gaming License as part of our complete Bar & Gaming Course.

Where an activity does not satisfy these criteria, it is not generally considered to be gambling under Australian law.

'Trade promotions', being free-to-enter competitions for the promotion of trade, are also regulated under gambling legislation in each jurisdiction. These competitions are subject to specific restrictions and, in certain jurisdictions, are only able to be conducted where a permit has been issued by the relevant regulator.

Fantasy sports operators have existed in the Australian market for some years. Initially, they were regulated as a form of trade promotion, whereas now they are treated by regulators as a form of bookmaking.

No specific regulation of 'pool betting' exists in Australia. Exclusive licences are granted to totalisator operators in all Australian jurisdictions. These operators are licensed to accept bets relating to a contingency (generally, the outcome of a racing or sporting event), which are then contributed to a pool that is paid out by reference to successful bets (after the operator deducts a percentage of the pool as commission, as well as various fees and taxes).

Spread betting and betting on financial products are regulated by the Corporations Act 2001 (Cth). To be conducted legally, operators must obtain an Australian Financial Services Licence. These products are regulated under a different regulatory regime to gambling products; however, in certain circumstances, a sports betting licence may also be obtained.

ii Gambling policy

In Australia, there is a general prohibition in all jurisdictions on the conduct and promotion of gambling. Legislative exemptions exist for gambling activities that are conducted under a licence. These activities include:

1. lotteries (both in venue and online);
2. wagering and sports betting (both in venues and online);
3. electronic gaming machines, slot machines, or 'pokies' (just in venues); and
4. land-based casinos where casino games, including poker, baccarat and blackjack (among others) can be played.

The paternalistic approach to the regulation of gambling services by Australian state and federal governments is a response to the concerns that arise from the adverse social consequences associated with gambling.

However, gambling has long been a part of Australia's culture and identity and, together with racing and sport, is well established in the national consciousness. State and territory-based regulation of gambling in the early 20th century marked the beginning of the legislative regime in place today. With the introduction of online wagering in the late 20th century, the industry continues to flourish, despite the continuing conflict between the economic returns provided by the gambling sector to state and territory governments, and sporting and racing bodies, and the pressure for governments to take action to minimise problem-gambling behaviour.

iii State control and private enterprise

Historically, lottery and totalisator operators were government-owned entities. Almost all states and territories (Western Australia being the exception in respect of its totalisator and lottery) have corporatised and privatised these gambling operators. All leading gambling businesses in Australia (many of whom are listed) conduct business under a licence granted by a state or territory government (or regulator).

The principal licensed gambling operators are:

1. Tabcorp Holdings Limited, which, since combining with Tatts Group Limited (Tatts) (see Section VIII, below) has the exclusive right to conduct both lotteries and totalisators (and off-course betting) through retail outlets in Queensland, Tasmania, New South Wales, Victoria, South Australia, the Australian Capital Territory and the Northern Territory;
2. The Star Entertainment Group Limited, which operates casinos in Sydney and in South East Queensland;
3. Crown Resorts Limited, which operates casinos in Melbourne and Perth (and Sydney from 2024) and also conducts the Australian Betfair betting exchange;
4. Sportsbet Pty Limited, a sports bookmaker;
5. BetEasy Pty Limited (formerly, CrownBet, now owned by The Stars Group), a sports bookmaker that acquired William Hill's Australian operation in 2018; and
6. Aristocrat Leisure Limited, Ainsworth Game Technology, Scientific Games Australia, Konami Australia, International Game Technology (IGT) and Aruze Australia (all being suppliers of gaming machines).

In Western Australia, the totalisator and lottery are conducted through state-owned corporations, respectively operated by Racing and Wagering Western Australia and LotteryWest. However, the Western Australian government announced in late 2018 that it is conducting a tender process in respect of the exclusive licence to operate the state's totalisator.

Separate exclusive licences are also issued in each state and territory in respect of the conduct of Keno games in land-based retail venues.

The right to operate a casino has been the subject of an exclusive licence in the relevant jurisdiction, save for Queensland, New South Wales and the Northern Territory. The recent issue of new casino licences in New South Wales and Queensland is discussed further in Section II, below.

Wagering services are not only provided by totalisator operators (who also provide fixed-odds betting services) but also by on-course bookmakers (some of whom also operate online) and corporate bookmakers (mostly licensed in the Northern Territory).

iv Territorial issues

As mentioned in subsection iii, above, licences to conduct gambling are issued by the relevant state or territory government (or regulator) including those listed in Section II, below. Traditionally, gambling was conducted solely in venues. However, as a result of new technologies and the challenges posed by gambling monopolies in most Australian states and territories, a number of gambling businesses (particularly in the wagering sector) are licensed to conduct gambling remotely. This includes corporate bookmakers, most of whom are subsidiaries of leading European online betting companies.

However, it is generally understood under principles of Australian constitutional law that gambling services provided under a licence issued in any state or territory of Australia are able to be provided to residents of other Australian states and territories. This principle was confirmed by the decision of the High Court of Australia in Betfair Pty Ltd and another v. Western Australia (2008) 244 ALR 32.

Each licensing jurisdiction imposes different licence conditions on its licensed operators, by reference to the relevant legislation. Most online corporate bookmakers, for example, are licensed in the Northern Territory by the Northern Territory Racing Commission (NTRC).

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v Offshore gambling

How To Get A Gambling License In Australia State

In 2001, the federal government enacted the Interactive Gambling Act 2001 (Cth) (IGA) which prohibits the provision of 'interactive' (or online) gambling services with an 'Australian customer link'. The IGA is enforced by the Australian Communications and Media Authority (ACMA) and the Australian Federal Police. In September 2017, the IGA was amended by the Interactive Gambling Amendment Act 2017 (Cth) (IGA Amendment Act) in response to claims that the existing legislation was ineffective as a means of deterring unlicensed offshore gambling operators from providing services to Australian residents.

The amendments, among other things, increased penalties, expanded existing aiding and abetting offences, clarified the prohibition on the use of VoIP technology by licensed wagering operators to facilitate in-play betting services, banned the provision of lines of credit by wagering operators and granted the ACMA greater investigative and enforcement powers, including the power to issue formal warnings and infringement notices.

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Broadly speaking, the IGA prohibits the provision of 'prohibited interactive gambling services' (the Section 15 Offence) and 'regulated interactive gambling services' without an Australian licence (the Section 15AA Offence), to persons present in Australia (together, the Operational Prohibitions). Regulated interactive gambling services include wagering services (with the exception of in-play sports betting services provided via an internet carriage service, including VoIP technology, which is prohibited) and lottery services (with the exception of instant or scratch lotteries, which are also prohibited). In addition, the IGA prohibits the advertising in Australia of 'prohibited interactive gambling services' and, unless the relevant party is licensed in Australia, 'regulated interactive gambling services' (the Advertising Prohibition).

The IGA targets the supply of online gambling to residents of Australia by offshore operators, but does not prevent Australian residents from accessing those offshore services, or the provision of services by Australian operators to customers in other countries.

How To Get A Gaming License In Australia

A defence is available for an alleged breach of the IGA where the operator did not know, or could not reasonably have known, that their service had an 'Australian customer link,' that is, that any or all of the customers of the service were physically present in Australia.