An independent report in Australia claims that by 2027 illegal gambling could cost nearly AU$3 billion ($1.99 billion) in lost taxes and product fees, urging authorities to take appropriate action to prevent the losses.

New Regulation Should Be Evidence-Based

The Australia Offshore Wagering Market Analysis 2023 Report states that by 2027 racing and sports bodies in the country are set to lose AU$1.6 billion ($1.1 billion) from product fees, with another AU$1.3 billion ($861 million) lost in taxes.

Commenting on the report findings, recently appointed chief executive officer of Responsible Wagering Australia (RWA), Kai Cantwell, outlined that any further regulations on the legal wagering industry should be evidence-based and take into consideration the views expressed by the industry, sporting bodies and broadcasters.

“It is crucial that any future reforms are balanced and prevent Australian players from being driven offshore, where player protections are limited,” he said, adamant that “failure to maintain a sustainably regulated sports betting market could result in a significant loss of economic benefits to the Australian economy, as well as to the sporting, racing, and broadcasting industries.”

Prepared by independent data analytics firm H2 Gambling Capital on behalf of Responsible Wagering Australia, the peak body for the licensed wagering service providers in the country, the report also estimates that currently, the offshore market in Australia is approximately 15% of the total market and worth more than AU$1.1 billion ($728 million).

Taking advantage that they do not have to pay tax revenues or product fees, the offshore operators are offering more competitive pricing to Australians compared to their legal counterparts. As a result of offshore firms aggressively targeting locals, the number of their websites increased almost twofold in the past four years, the report highlighted.

Advertising Helps Players Recognize Offshore Firms

The report also urges that a broad and fair onshore market licensing system that favors licensed operators” is maintained as the offshore market, once established, is hard to eradicate. And Data shows that the offshore market is not only established but growing.

Turning to the subject of gambling advertising, the analysis claims that any prevention of advertising and marketing from legal operators will have a negative impact as players would not be able to distinguish between legal and illegal websites.

The lack of advertising for legal operators will also place them at a disadvantage to their competitors offshore which are utilizing affiliate websites to advertise their products and services regularly and those affiliates are located outside of the country and hard to police.

“RWA and its members look forward to the outcomes of the House of Representatives Inquiry into Online Gambling and will continue to work with government to discuss sensible measures that ensure that the six million Australians who enjoy a punt can do so safely,” Cantwell concluded.

The post RWA Report Projects AU$3B Lost to Offshore Operators by 2027 appeared first on Keno Wizard.