The participation rate of gambling in Australia is one of the highest in the world. Most types of gambling are commonly available to Australian gamblers, there is just one exception: online casino gambling, which is almost completely banned.
Australia Gambling License Laws
The Interactive Gambling Act, regulating gambling activities was adopted by the Australian government in 2001. The law is focused on operators of online gambling, people’s winnings are not taxed because it is not considered a professional activity, but rather a recreation and entertainment. And in 2017, there was an amendment requiring additional licensing of gambling establishments by Australian authorities that also added ways for players to opt out of gambling protections. However, this law bans the majority of gambling on the Internet, from poker to roulette, blackjack, and online poker. One thing it does not prohibit is car racing and sports betting, provided that bets are not placed while playing, as well as online lotteries.
Each region regulates the industry through its government departments:
- Australia’s metropolitan casinos are regulated by the Gaming and Racing Commission.
- In New South Wales, the Liquor, Gaming and Racing Regulatory Authority controls the industry.
- It is possible to obtain a license in Victoria from the Gambling and Liquor Control Commission.
- In Queensland, the industry is regulated by the Liquor and Gambling Entertainment Control Commission.
- In North Australia, you can purchase a gambling permit from the North Australian Licensing Commission.
- The Independent Gambling Authority operates in South Australia.
- Control of the industry in Western Australia belongs to the Department of Racing, Liquor and Gaming.
- In Tasmania, there is the Tasmanian Gambling Commission.
Types of Australian Gaming License
Table games, slot and gaming machines in casinos, non-regular betting, lotteries, and keno all require an operator’s license, which is usually issued for a long period of time and is granted by the relevant state or territory of Australia. Bookmaking activities require a corporate bookmaker’s license or an online bookmaker’s license.
How to get a gaming license in Australia?
The requirements for obtaining an online gaming license are also very different because of the variety of regulatory bodies in Australia. It is necessary to research the legal framework, conditions, and licensing requirements in the state or territory that has been chosen for the gambling business. The best solution is to analyze the offer of all 8 jurisdictions in order to choose the most suitable option for your particular business.
Online Gambling Licence Requirements
It was mentioned in the previous paragraph that there are many regulatory authorities, and each has its own rules and regulations. However, there are some that are common:
- Cooperation with law enforcement authorities.
- Ensuring the security of financial transactions. AML/CFT policies compliance. Limiting the flow of funds to prevent money laundering.
- Securing personal data and privacy.
- Making a comfortable playing experience for the players.
- Complying with advertising laws. It is illegal in Australia to advertise online casinos and other forms of online gambling.
- Ensuring fair and transparent play and discouraging any scams.
- Employees must be certified and have the appropriate professional skills.
List of Documents
The following documents must be prepared to submit a license application:
- Documents identifying business participants (passports, driving licenses of co-founders).
- Certificates in absence of criminal records.
- Documents confirming financial stability.
- Certificates of conformity of software and technical resources.
- Documents confirming payment of tax levies.
Australian Gaming Licence Cost
The cost to obtain an Australia Gambling License varies firstly according to region. Secondly, the cost depends on the number of founders and the specialization of the company.
Gaming license of the Northern Territory of Australia
The initial requirement is to pay a fee of 20,000 units, with each unit costing $1.15. The cost of services is then negotiated and agreed upon.
Australian Metropolitan Territory Gaming License
A license can be obtained for sports betting, betting games, and lotteries. The initial fee starts from $200,000 for the issuance of the license, then every year $100,000 is paid as an annual fee.
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The gambling taxes imposed on casinos and other gambling operators depend on the state and territory where the company has registration documents. The approximate state revenue from the gambling industry is about 15% of the budget.
The following taxes also apply in Australia:
- Turnover tax is imposed on such gambling activities as sweepstakes, lottery ticket sales, bookmaking, etc.
- Player loss tax is taxed on sports betting, casino, sweepstakes, etc.
- License fees must be paid by casinos, lotteries, bookmakers, bingo, etc.
- Tax on the net profits that are accrued from online poker, and investment sweepstakes.
The complexity and length of the licensing process depend on the particular region of the country. However, there are several other factors that will affect the time it takes to issue an online casino and other types of licenses in Australia. For example, if you need to register a business entity and open bank accounts, this will also take a considerable amount of time. On top of that, collecting documents can take a long time, and if you make a mistake, you will have to start the whole process from the beginning.
Pros and Cons of getting an online gambling license
Obtaining an online gambling license in Australia has a lot of advantages and disadvantages:
- Many types of gambling allowed
- Clear rules for obtaining
- Support from Regulatory Authorities
- The complicated process of obtaining
- High cost
- Each province requires its own license