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Current Trends and Pitfalls in the Development of the iGaming Industry in Australia

By  //  April 23, 2025

The Latest News from the iGaming Industry in Australia

The beginning of the year was quite intriguing for the iGaming industry in Australia – tightening of legislative regulations, mistakes in the work of local operators and high-profile openings of new brands. Let’s take a look at the main events that affected the local market and became decisive in determining the trends of the industry’s development and best australian casinos. 

Innovations and Achievements

To begin with, let’s note the positive developments that have been memorable for Australian users in recent months. 

BetMakers Has Extended Its Agreement with Sportsbet 

BetMakers Technology Group has announced a long-term agreement extension with Sportsbet, one of the largest betting service providers in Australia.

Under the terms of the deal, Sportsbet will continue to utilise BetMakers’ technology solutions to manage data and pricing strategies for horse racing. In particular, the company is interested in such popular local destinations as thoroughbred, trotting and greyhound racing.

Following the signed agreement, BetMakers will provide a comprehensive service to help Sportsbet monitor betting results and manage markets, as well as offer its audience ready-made strategies and coupons, and send reminders of upcoming events. 

BetMakers is in an active growth phase, so it regularly enters into partnership agreements with both Australian projects and overseas operators. In early 2025, the company renewed its partnership memorandum with Dabble. This project now has access to innovative technologies such as Price Manager and Racelab, which will ensure it enters the UK market more quickly.

At the same time, the company also continues to actively invest in technology development and integration of new solutions. One of the latest major deals was the purchase of software and intellectual property developer Protocol Zone for AU$1.5 million (US$0.9 million). Under the terms of the agreement, BetMakers gained access to the use of API data feeds, rating models and digital betting technologies, which the company plans to integrate into its GTX platform.

Bally’s is Considering the Purchase of Star Entertainment

US management company Bally’s Corporation could be a potential buyer of Star Entertainment, a major australian casino sites franchise that is now in a difficult financial position.

According to the Australian Financial Review, a delegation from Bally’s recently visited Australia and held meetings with Star Entertainment’s management and its creditors. Among the rumoured members of the delegation was Soo Kim, chairman of Bally’s and founder of Standard General, the hedge fund that became the company’s largest shareholder after buying out its shares in July 2023.

Bally’s interest is driven by the opportunity to acquire Star Entertainment’s three casinos, Star Sydney, Star Brisbane and Star Gold Coast.

If the deal goes through, it will be Bally’s first entry into the global iGaming market. The company now owns 19 casinos in 11 US states. However, experts doubt how sensible it is for Bally’s to take on such a complex asset, given Star’s own problems and Bally’s current projects in the US.

Today, Bally’s is not the only company considering buying Star Entertainment. Other possible investors include:

  • Blackstone (US) – already owns Crown Resorts, Star’s main competitor. Blackstone could make an offer if Star is on the verge of bankruptcy, but New South Wales (NSW) legislation prohibits one company from operating two casinos in Sydney;
  • Chow Tai Fook and Far East Consortium (Hong Kong) – offered to buy out Star’s stake in Star Brisbane, but their offer was rejected;
  • Oaktree Capital (US) – offered AU$650m to refinance Star’s debt.
  • Star itself has already sold its Sydney Events Centre for AU$60 million and is also considering selling other assets.

In an official statement, the company emphasised that so far management has no confidence in the successful conclusion of negotiations and financial sustainability remains in question.

BlueBet Acquires TopSport Assets

Australian management company BlueBet Holdings has entered into an agreement to acquire a number of assets of Merlehan Booking, better known under the TopSport brand.

Under the terms of the deal, BlueBet will pay AUD 10 million (approximately USD 6.3 million) for the assets of TopSport. 70% of the consideration will be paid in cash and the remaining 30% in BlueBet shares. In addition, the agreement provides for additional payments dependent on BlueBet’s share performance and the financial performance of the acquired assets.

To fund the deal, BlueBet made an additional share issue, raising AUD 15 million through the issue of 44.1 million new securities.

TopSport is a family business founded by Lloyd and Tristan Merlehan that specialises in sports betting and horse racing in Australia. In the first half of the 2025 financial year, TopSport had a turnover of AUD 198.9 million and a net profit of $11.8 million.

However, BlueBet is not buying the entire company, just key assets including:

  • Customer base;
  • Brand and intellectual property;
  • A number of strategic contracts;
  • Key team, including TopSport CEO Tristan Merlehan, who will take over as BlueBet’s head trader.

The transaction is expected to be finalised in April 2025, subject to the satisfaction of all regulatory requirements.

BlueBet CEO Andrew Mentz said the acquisition of TopSport is an important step towards achieving a 10 per cent share of the betting market in Australia: “This acquisition significantly enhances BlueBet’s profitability and accelerates our growth strategy. We continue to consolidate the Australian betting market and this deal is just the first step in our plan to scale.”

TopSport CEO Tristan Merlehan also backed the deal, noting that BlueBet has a unique track record of integrating customers and scaling businesses.

Tabcorp Strengthens Its Position in Victoria

Australian bookmaker Tabcorp has reported its financial results for the first half of the 2025 financial year. The company’s revenue totalled AUD 1.33bn, up 10.1% year-on-year.

One of the key success factors was obtaining an exclusive 20-year licence to provide sports betting services in Victoria. The licence came into effect in August 2024 and allowed Tabcorp to remove a number of co-financing obligations for the horse racing industry, significantly reducing operating costs.

Tabcorp CEO Gillon McLachlan said the company is adopting new technologies and tightening cost control “We have reduced operating expenses by $30 million, which is 50 per cent more than planned. We have also reduced capital expenditures by $25 million. This allows us to focus on developing new products and improving our competitive position.”

The key factors that contributed to profit growth were:

  • Successful marketing campaigns during Melbourne Cup Carnival;
  • Enhance digital products and mobile app;
  • Increased discipline in spending.

McLachlan also emphasised that the company will continue to invest in technology and expand its online presence.

Sydney Resident Wins Record $100m Oz Lotto Jackpot

A Western Sydney resident has made history as she claimed the biggest Ozz Lotto win ever for the online lottery. She entered the following numbers during draw #161616: 3, 34, 35, 26, 44, 39, 36. As well as additional numbers: 5, 45, 6. The total payout amounted to $100 million.

According to the operator, which is the organiser of this online lottery, this is the largest Oz Lotto jackpot in more than 10 years.

When the winner found out about her winnings, she didn’t believe it at first and thought she was being played by fraudsters. Now her life has changed forever. Previously, the woman had to work seven days a week. Now she is now planning to take some time off: invest some of her money in buying a property and go on a big trip.

Oz Lotto is one of the most popular online lotteries in Australia. According to official figures, more than one-third of the Australian adult population has participated in the legendary draw, indicating an increased interest in this format. 

Tightening of Legislation 

Now let’s talk about the offenders. As part of the implementation of the requirements of the Interactive Gambling Act 2001, several local and international operators broke the rules and were fined by regulatory organisations. Let’s take a look at the most high-profile cases and the results of investigations. 

VGCCC Has Introduced New Fines

The Victorian Gaming and Casino Control Commission (VGCCC) has fined Victorian Amateur Turf Club AU$7,000 as part of a policy to restrict minors from gambling. 

Former VGCCC CEO Annette Kimmitt said that investigating such cases is a priority for the organisation. Therefore, the team will continue to investigate cases where children and teenagers are allowed to enter arcades and bring the perpetrators to justice.

The incident itself took place on 10 June 2023. According to the investigation, the minor had visited the Peninsula Club on two occasions and even played slot machines without hindrance.

On the second occasion, the child entered the establishment accompanied by an adult and used the slot machine for about five minutes before staff responded and took action. 

Although there were no convictions in this incident, the owner of the Victorian Amateur Turf Club was found guilty of two offences under the Victorian Gambling Act 2003. The fines totalled AU$7,000 plus an additional AU$3,500. These were immediately paid to the VGCCC.

At the moment, two more complaints about similar situations are also pending before the VGCCC office. It is expected that the final judgement will be finalised by the end of 2025. Both players have already been fined: Supreme Edinburgh PTY Ltd was fined AU$2,500 for three incidents in breach of the Gambling Act, while Correct Bet Pty Ltd was fined AU$3,000 for allowing a minor to be active in their establishment.

VGCCC representatives note that such strict measures should affect the work of all operators and remind them once again of their responsibility in restricting access to services for minors. For this purpose, it is important to finalise the control of staff and to prevent children from gambling, even if they come accompanied by their parents. 

ACMA Blocks New Illegal Gambling Sites 

Under new requirements from the Australian Communications and Media Authority (ACMA), Australia’s internet service providers will now block illegal offshore websites that provide gambling services to local users. An investigation earlier this year found at least two projects violated the Interactive Gambling Act 2001. Thus, the following online casino sites were blocked most recently: Pokizino and ABA Lucky 33. So far, the consequences apply only to the teams of the projects themselves, and not to their audience. 

According to ACMA executives, blocking illegal gambling sites is one of the most effective legal methods to protect local audiences from fraudulent activities and warn them against breaking the law. Blocking activities by ACMA administrators and Australian ISPs first began back in November 2019. As of early March 2025, 652 illegal affiliate sites have been blocked, as well as many fraudulent activities.

Such activities are having an impact and driving unlicensed operators out of the market, whose registration with systems can end negatively for local users, as nothing can guarantee the protection of their interests. More than 180 illegal services have already left the Australian market since ACMA in 2017 started to implement new rules to restrict access to service provision for illegal overseas projects. 

These tough measures are well justified: ACMA reminds all gambling enthusiasts in Australia to be clear and informed when choosing online casino sites and applications. Modern scammers are becoming more and more sophisticated: therefore, even if the service looks legitimate, it is necessary to check whether the management company has the appropriate licence. Otherwise, users put their financial assets and personal data at risk.  

You can check the project you are interested in, as well as get more information about legal gambling and responsible gambling policy in a special register on the ACMA website. Here you can also file a complaint against a fraudulent site. 

Western Australia Steps Up Gambling Regulation

The Western Australian government has introduced new reforms that should significantly strengthen regulation of the gambling industry. As part of the changes, it is planned to increase fines and expand the powers of regulators.

The adopted changes are among the first steps towards a complete modernisation of legislation in relation to the iGaming industry and the operation of projects and brands in the state, in line with the recommendations of the Perth Casino Royal Commission.

Key areas for reform include:

  • Extending the powers of the Gaming and Wagering Commission (GWC) to more strictly control licences for local and overseas projects;
  • Increasing fines for gambling offences to improve the deterrent effect.

This policy has sparked heated discussions in the iGaming industry.  According to the Minister for Racing and Gaming Paul Papalia, it will take a long time to implement all the legislative recommendations of the Royal Commission, but the regulators have already achieved impressive and impressive results in creating a comprehensive system to manage all operators and processes within the industry. Today it covers not only casinos but also other popular destinations in Western Australia.

The forthcoming changes have been welcomed by GWC CEO Gary Drybergs, who commented on the introduction of the reforms and the substantial increase in fines as one of the most effective deterrents and punishment for violators and fraudsters. Previously, low fines could be perceived as a compromise on possible rule breaking for the sake of higher potential profits.

It is expected that the expansion of the GWC’s powers will be an excellent opportunity for more in-depth and detailed investigations and prosecutions related to violations of the law. It is also expected to be an effective tool to combat the illegal activities of criminal gangs that aim to steal financial assets and launder funds through illegal online casinos and betting sites.

The Green Party Has Proposed Its Solution to Regulating Gambling in Australia

Let’s end on a positive note. The Australian Greens Party recently submitted an updated draft to the Albanese government with specific proposals to restrict gambling advertising. The decision now looks like a compromise that could lead to new laws being passed within a fortnight.

More specifically, the following initiatives from party representatives were put to Communications Minister Michelle Rowland for discussion:

  • Limiting adverts before and after sports broadcasts;
  • A complete ban on advertising while watching children’s programmes; 
  • Limiting the number of gambling adverts to two per TV programme.

Thus, projects in the iGaming industry have a field and channels to promote their services. But restrictions on advertising to vulnerable groups are automatically imposed. This move can also be seen as a pressure on the Labour Party and a demand for a speedy reform.

Senator Sarah Hanson-Young, the Greens’ public affairs spokesperson, said that the reform of gambling advertising regulations is still an unresolved issue by the current Parliament. This is of concern to the general public, so legislation must be passed before the election.

Previously, the Cabinet postponed consideration of the bill, citing internal disagreements. This neglect of an important agenda for Australia has drawn criticism from community organisations and the opposition.

Major Fines and Restrictions 

The iGaming industry in Australia is not without some high-profile scandals. Let’s take a look at what the tabloids and local media have been discussing in recent months.

Foxtel Breached Gambling Advertising Rules 

According to an ACMA investigation, Foxtel cable TV has been found guilty of breaching local legislation regarding gambling advertising.  The incident itself occurred during the broadcast of an Australian Football League (AFL) match between Port Adelaide and Essendon in April 2024.

ACMA representatives analysed the essence of the advertising message and the context of what was happening: according to the official data of the investigation, during the live broadcast of the match, a virtual banner with an advertisement of one of the operators operating in Australia appeared on the screen for a few seconds. The essence of the offence is that the image itself lacked the mandatory warning about the risks associated with gambling. 

Such actions are in direct contravention of the principles of the Cable Television Code of Practice, which requires that all gambling-related adverts broadcast during sporting events contain a message about potential risks.

ACMA member Caroline Lidgerwood commented on the results of the investigation and once again drew attention to the importance of compliance with such measures. In her opinion, every message related to gambling, released in the public field in the format of advertising must necessarily emphasise the risks of gambling addiction in the absence of a responsible approach to the gambling process. At the same time, the mark “18+” is not a sufficient warning, as it is aimed only at counteracting the involvement of minors in gambling.

No objections were received from the administration of Foxtel cable channel. The team promptly corrected the situation by adding the necessary text to the advertising message. In addition, the broadcaster took additional measures to train the team on the requirements and terms of implementation of advertising contracts with online casino operators to avoid similar violations in the future.

Such an incident is not unique to the iGaming market in Australia. Last month, the ACMA also revealed that Network Ten television station in Sydney ignored gambling advertising restrictions during the broadcast of the 2024 Formula One Australian Grand Prix.

The Star Sydney Received a $15 Million Fine

Australia’s famous casino The Star Sydney has been fined heavily following an investigation by the NSW Independent Casino Commission (NICC). Now the management company will have to pay 15 million AUD. The project’s operations have also been severely restricted, but so far it has managed to retain its licence and continue to provide services. 

The situation was commented on by NICC Chief Commissioner Philip Crawford. He expressed concern that tightening controls on gambling-related projects, local and overseas projects continue to commit numerous breaches, including governance, technology and compliance issues. 

NICCs are now doing their best to protect the local market from criminal infiltration. Therefore, local brands only have to comply with strict requirements to avoid losing their licences. 

For the time being, Star Sydney will remain under the regulator’s supervision, and the fate of its licence depends on whether the management can rectify the identified irregularities.