According to the Australia Offshore Wagering Market Analysis 2023 report, developed by H2 Gambling Capital on behalf of RWA, it is estimated that black market activities in the country could result in a loss of $3.35bn in taxes between 2022 and 2027. Additionally, there is an estimated grey market tax loss of $3.32bn. Combined, these potential losses could amount to $6.67bn.
RWA has highlighted that offshore operators are attractive to customers due to their competitive pricing and less stringent consumer protection rules compared to licensed operators. To prevent Australian players from resorting to the offshore market, RWA CEO Kai Cantwell emphasizes the need for balanced reforms that eliminate offshore options while ensuring sufficient player protections are in place.
The report also reveals that Australia’s illegal offshore gambling market is valued at over $1.1bn, constituting approximately 15% of the total gambling market in the country. H2 estimates that 92% of the online market in 2022 was based domestically, indicating a steady growth from 82% in 2017. For the same year, onshore racing operations accounted for 96% of the market, while sports accounted for 78%. The total gross gaming revenue (GGR) for 2022 was estimated at $7.71bn, with a projected increase to $7.85bn in 2023. In terms of revenue, black market activities generated $571m, while the grey market accounted for $560m.
