History of Online Betting in Australia
Online gaming and online betting in Australia have come to fruition and since then have become a major source of entertainment for many who call Australia home. Similar to betting sites in the UK, in Australia, almost 80% of adults engage in some form of online gambling on a weekly basis. This is a substantial number, especially considering the gaming act in place does not allow casinos to actively market their services. Surprisingly, it is the Video pokies that are one of the least popular with only around 4% of adults playing this game of chance.
Online betting has become the major contributing factor as Australian websites provide both national and international sports, horse racing, and much more. Aussie players' preference for traditional forms of gaming is evident, as evidenced by the $3 billion generated from pokies alone. This is substantial when you consider it accounts for a mere 4% of player preferences. The year 2009 saw that figure increase to $19 billion, and the trend of increases continues today.
Casino Games
Australia was one of the first to import online pokies from the U.S. This occurred shortly after they began to appear in the U.S. in the early 1900s. It may be surprising to learn that pokie machines have been in existence for over a century. NSW was the first state to permit poker machines in 1956, and it is also where the term 'pokie' originated.
Eventually, they spread throughout Australia and became an accepted form of entertainment by the government. Some states took longer before accepting and allowing wagers due to a focus towards lotteries and betting, but eventually, they became commonplace and remain so today, albeit only in licensed casinos by the government.
Online Gaming
As many would know, the internet changed many things, and one of those was the ease of access to gaming. By the mid-1990s, developers such as NetEnt and Microgaming began creating video pokies, along with a small number of video poker and table games, complete with platforms for real money wagers. Online Sports Books quickly followed, and by 2001 the Australian government had enforced an act that allowed these casino games and betting options to become licensed and legal. The law was put in place as a protective measure for players but also as a revenue-generating stream.
As the industry took hold, more people made the move to online versus traditional brick-and-mortar style establishments. The reasons are rather simple, with convenience being one factor and the quality of the games being another. It did not take long for people to see its advantages, especially from a promotional perk perspective. Evidence of this is clearly noticed in the $800 million generated in 2010 as a result of those actions. While this is less than land-based operators, that number increases yearly and has garnered much attention as a result. Australia is one of the largest markets in the world currently, and that is not expected to change unless the U.S. once again makes their environment online gaming friendly.
The number of online casinos available and 3rd party advertisement taking place online has only fueled growth. Online casinos operating offshore are not governed by the laws of Australia and in recent years it has caused a number of countries such as Australia to make amendments to their gaming acts.
While the act prevents casinos from promoting “real money” games, it does not limit them from promoting games that do not require real money and as a result, increases in player numbers have been evident as most make their way to real money play and the casinos have not breached laws in the conversions of players.
Taxation
The Australian government does not classify casino winnings as a professional source of income. This means players from Australia will not be required to pay tax on their winnings; however, those casinos operating within its borders are subject to business taxation.
The Future
What the future holds for betting in Australia is up for debate. While some may like to see it be limited, it is ensconced in the lifestyles of those who visit and make it a viable business. Additional measures may be made to change the act to allow for other income-generating taxes, however, seeing it made illegal is not something anticipated.
Key Years in the History of Gambling in Australia
| Year | Event |
|---|---|
| Early 1900s | Introduction of pokie machines in Australia, imported from the U.S. |
| 1956 | NSW permits poker machines, the term 'pokie' originates. |
| Mid-1990s | Development of video pokies and online gaming platforms by companies like NetEnt and Microgaming. |
| 2001 | Australian government enforces an act to license and legalize online casino games and betting options. |
| 2009 | Online gambling revenue increases to $19 billion. |
| 2010 | Online gambling generates $800 million, indicating a shift towards online platforms. |
| 2023 | Continued growth and adaptation in the online gambling market in Australia. |
FAQs: Online Betting in Australia
When were pokie machines introduced in Australia?
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Pokie machines were introduced in Australia in the early 1900s, shortly after they appeared in the U.S.
What percentage of Australian adults engage in online gambling?
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Almost 80% of Australian adults engage in some form of online gambling on a weekly basis.
When did NSW permit poker machines?
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NSW permitted poker machines in 1956, and it's also where the term 'pokie' originated.
When did online sports books become legal in Australia?
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Online sports books became legal in Australia in 2001 when the government enforced an act to license and legalize online casino games and betting options.
Are casino winnings considered a professional source of income in Australia?
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No, the Australian government does not classify casino winnings as a professional source of income, so players are not required to pay tax on their winnings.
What is the future outlook for online betting in Australia?
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The future of online betting in Australia is subject to debate, but it is deeply ingrained in the lifestyle and is considered a viable business. Changes in legislation for additional taxes might occur, but making it illegal is not anticipated.