Content Writer: Janice Chew • Thursday, 25/11/2025 - 23:01:55 - PM
New research commissioned by the industry body Responsible Wagering Australia (RWA) and carried out by H2 Gambling Capital has estimated that Australia’s illegal offshore gambling market has surged to approximately AU$3.9 billion (about US$2.53 billion) per year as of 2025, more than doubling since 2019.
The study highlights that approximately 36 % of all online gambling in Australia in 2025 is conducted via offshore operators. It further notes that about one-quarter of that offshore volume relates to gambling products that are illegal in the domestic market (such as online casinos and live in-play betting).
RWA projects that the illegal offshore market will continue expanding, forecasting a value of AU$5 billion (around US$3.24 billion) by 2029. The growth of this grey-market segment is seen as a threat to government revenue: over the next five years, Australian authorities and regulated operators are expected to lose nearly AU$2 billion (roughly US$1.30 billion) in tax and product-fee income due to this offshore leakage.
According to the study, there are also significant consumer-protection concerns: half of the Australians surveyed who used offshore gambling sites did so while still listed on the national self-exclusion register (BetStop), thereby undermining the effectiveness of that safeguard. The offshore operations often operate beyond Australian regulatory reach and may exploit weaker jurisdictions for money-laundering or other illicit activity.
In response, RWA has called for a stronger, consistent national regulatory framework in Australia to ensure the on-shore market remains competitive, to reduce consumer migration offshore, and to protect revenue streams for sports and racing.