Unlike land-based pokies, which are legal and regulated at the state and territory level, online pokies face stricter prohibitions under national laws. The legal framework governing online pokies is primarily shaped by the Interactive Gambling Act 2001 (IGA), alongside state and territory regulations that control land-based gambling.
Interactive Gambling Act 2001 (IGA)
The Interactive Gambling Act 2001 (IGA) is the primary piece of federal legislation that governs online gambling in Australia, including online pokies. The IGA was introduced to manage the rise of internet gambling and to protect Australian consumers from the potential harm of unregulated online gambling platforms, particularly those operating offshore.
Key Provisions of the IGA
Prohibition on Online Pokies: The IGA makes it illegal for online gambling operators, whether based in Australia or overseas, to offer "interactive gambling services" like online pokies to Australian players. These services include online casinos and slot machine-style games, which are classified as prohibited interactive gambling services under the Act.
Targeting Operators, Not Players: The IGA focuses on prohibiting gambling operators from providing or advertising online pokies to Australian residents. However, it does not criminalize individual players for accessing these services. This means that while it is illegal for an operator to offer online pokies to Australians, there are no penalties for Australians who choose to gamble on offshore sites that provide these services. This legal loophole has allowed many Australian players to continue accessing online pokies through unregulated offshore providers.
Enforcement by the Australian Communications and Media Authority (ACMA): The Australian Communications and Media Authority (ACMA) is responsible for enforcing the IGA. The ACMA has the power to investigate complaints, block illegal offshore websites, and issue warnings or fines to operators who breach the Act. However, enforcing the law against offshore operators has proven to be a significant challenge due to jurisdictional limitations.
Blocking Offshore Websites: In recent years, the ACMA has stepped up efforts to block access to illegal offshore gambling websites that offer online pokies. The ACMA can issue directives to Australian Internet Service Providers (ISPs) to block access to these websites. Since 2019, the ACMA has blocked hundreds of offshore gambling websites to protect Australian consumers from unregulated services.
Penalties for Operators: Operators who offer or advertise prohibited gambling services, such as online pokies, face significant penalties under the IGA. These can include fines of up to AUD 1.35 million per day for corporate entities and AUD 270,000 per day for individuals. However, enforcing these penalties on offshore operators can be difficult in practice.
The 2017 IGA Amendments
In 2017, the Australian government introduced amendments to the IGA to tighten regulations on online gambling and address the rise of offshore operators targeting Australian players. Key changes included:
- Banning in-play sports betting: This amendment targeted in-play sports betting, which allowed players to place bets after a sporting event had started. Although not directly related to online pokies, the amendment was part of broader efforts to curb online gambling practices that were seen as potentially harmful.
- Requiring Licenses for Operators: Online gambling operators wishing to offer services to Australian customers must now obtain a license from an Australian state or territory regulator. This amendment primarily affected online sports betting companies, but online casinos and pokies remain prohibited regardless of licensing.
