Australia Pushes Gambling Reform Under Mounting Pressure

Australia is facing renewed calls for overhaul of gambling laws, amid growing scrutiny over regulator performance and industry conduct. A high-profile lawsuit targeting Sportsbet has intensified debate about money laundering checks and regulatory oversight.

Lawsuit forces focus on KYC and AML

A recent lawsuit filed by Victoria resident Kym Cavigan accuses Sportsbet, owned by Flutter Entertainment, of accepting deposits made with stolen funds. The case has intensified scrutiny of how online operators handle Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations. Several major brands, including Entain, have already faced investigations for similar compliance breaches. Lawmakers argue that the sector’s existing safeguards are insufficient and that greater accountability is needed. The ongoing case could set a precedent for how betting operators are expected to monitor suspicious transactions in the future.

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At the same time, political frustration continues to grow over the government’s slow pace of reform. Two years after the Murphy Report recommended the creation of a national gambling regulator, progress remains limited. Critics accuse the government of protecting industry interests while ignoring social harms linked to gambling. The Northern Territory Racing and Wagering Commission has also come under fire for being too lenient in enforcing standards. Increasingly, politicians are urging the federal government to introduce clear, unified legislation that would replace fragmented regional oversight.

Industry growth meets political backlash

Despite the criticism, Australia’s gambling market continues to thrive. Annual wagering turnover now exceeds AU$244 billion, generating more than AU$32 billion in gross profits. New operators, including XBet, NextBet, and Betdragon, have recently entered the market, while Japanese technology company MIXI has taken a majority stake in PointsBet. The sector’s expansion underscores the ongoing popularity of online wagering across the country.

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However, this growth has triggered a strong political backlash. Prime Minister Anthony Albanese is under mounting pressure to revive gambling reform legislation, which has stalled amid industry lobbying. Independent MP Andrew Wilkie has repeatedly criticized the government for failing to act on the Murphy Report’s recommendations. Public opinion polls also show rising support for restrictions on gambling advertising and stricter KYC enforcement. With multiple scandals unfolding, the debate over regulation is likely to dominate Australia’s gambling policy in the months ahead.