With Australia making the top ten for the world’s largest gambling country, it should come as no surprise that it has an incredible turnover rate in this sector. As of 2022-23, the gambling giant pulled in a gross profit of AU$ 51 billion ($31 billion) through land-based gambling and over AU$ 70 billion ($44 billion) in online gaming. As one of the largest in the world, it is estimated that 2 in 5 Australians will wager weekly, showcasing their large gambling culture. With Australia holding about 1% of the world’s population, how did it manage to grow into one of the largest gambling sectors globally?
The History of Aussie Gambling
To fully understand this, one needs to first unpack the complex historical, cultural, and regulatory factors that helped shape the current sector. In the digital world, gambling is as easy as taking out a mobile phone and finding a reputable online casino, which, at times, can prove tricky. As gambling expert Vlad Grindu points out, finding a solution to this is quite easy; there is always a variety of online options for Australians, including Techopedia’s picks for AU online play. These sites are based offshore and accept players from Australia, but of course there are also plenty of land-based gambling options available across the country.
However, this has not always been the case for Aussie punters, with the popular practice dating all the way back to the early 19th century.
This came in the form of horse racing, with the sport being the first institutionalized version of gambling in the country. By the early 1900s, betting was allowed at race tracks alongside licensed bookmakers, with the Melbourne Cup still standing as one of the largest horse racing events in the world. Unofficially, however, gambling became popular through a game introduced by European settlers called Two Up. Simply put, players would toss two coins in the air and bet on how they would fall, making it one of the most popular games during the Great Gold Rush.
Gambling as a Cultural Narrative
As gambling became more popular in Australia, so did the cultural significance surrounding this practice. Soon, Aussies saw ‘having a punt’ as more than a form of entertainment but also a means to socialize, making it that much easier to accept as the norm. For one, with sports betting being the catalyst for the gambling industry to take off, it is no surprise that it makes up a large part of the gambling market. With Aussies being passionate about their respective sports teams, gambling is a great way to add an extra layer of immersion and risk while still showing their support and fair go traditions.
The Impact of Regulatory Frameworks
Due to the sheer size of the gambling sector in Australia, it is only natural for the country to have strict regulatory systems in place. This is done through two levels of regulation, federal and state/territory, with the latter governing land-based gambling (slot machines, sports betting, lotteries, etc). In comparison, there is a federal law principle, IGA (Interactive Gambling Act 2001), that controls online gambling in the country to ensure no illegal/unlicensed activity is taking place. These regulations reach as far as gambling advertisements, stringently monitoring the content and spaces these services are marketed in.
However, while gambling may be strictly monitored, the Australian government does heavily rely on the revenue generated from this sector. These funds are allocated to finance other sectors, making this a very profitable partnership for all parties involved.
Gambling in the Digital Age
While it may not sound like it, it is much easier for Aussies to access online gambling platforms as these regulatory practices make it that much safer for consumers. As a result, technological advancements have not only made it easier for players to gamble but also easy for operators to open shop in Australia from across the globe. Furthermore, many punters opt for online gambling over brick-and-mortar casinos due to the convenience and incentives that cannot normally be found with land-based wagering. Naturally, iGaming has greatly spurred the growth of the Australian gambling industry.
The Flip Side
A large reason gambling is so heavily regulated is the risks of dependence and financial loss that come along with a country whose culture is so heavily integrated with gambling. As such, many online and land-based services offer self-exclusion programs and other resources to support consumers in need of help. However, this is not so easily resolved, with there being ongoing debates discussing the delicate balance between social responsibility and revenue generation.
