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The Predatory Nature of Online Gambling in Australia | Revive

Written by Revive Financial | Aug 7, 2023 4:46:00 AM

As a nation, Australia loves a punt. It fits with our love of sports and our pub culture.

Over the years, it’s not only become socially acceptable but also expected on certain days (think Powerball Thursdays and Melbourne Cup).

We know why gambling is bad: addiction, debt, relationship and mental health issues, and criminal activity. But despite this, we continue to do it with the statistics on gambling spend continuing to rise, despite restrictions being in place.

So, what’s going on? Why can’t we stop with the wagers?

While we all need to take our own individual responsibility, the gambling industry holds significant blame due to the predatory tactics they use to engage us—and online has become their playground.

Let’s take a closer look at online gambling here in Australia. We’ll also share with you details of support and gambling help online.

Our Gambling Addiction in Data

Australians are by far the biggest gamblers in the world. We also have the highest rate of gambling losses.

Data from the Queensland Government in the 37th Edition of Australian Gambling Statistics show that Australians bet more than $170 billion in 2018-19. This is more than what the government spent on health, education and defence combined in 2019.

Of this, total winnings were just over $25 billion. This means per-person losses of just over $1,277 to gambling yearly, with the biggest losses seen on gaming followed by racing and sports betting.

Across the states, NSW has the biggest per capita spend at $1,508 in 2020, followed by the NT at $1,352 and Queensland at $976. Tasmania came in last at $602.

The Australian Communications and Media Authority found that one in ten Australians have reported engaging in online gaming at some stage in the past six months.

Online Gambling: Debt at Your Fingertips

While it’s touted as convenient, one of the big problems with online gambling is that it puts temptation at your fingertips—you can bet 24/7.

Types of gambling we’re indulging in via online gambling sites on our phones, tablets and laptops include:

  • Sports betting
  • Lottery (including online scratch cards)
  • Keno
  • E-sports betting

People love the variety of games and betting options, but they’re designed to be dopamine-fuelled and addictive. Online gambling also allows a level of privacy and anonymity. However, this means it’s more likely to become problem gambling.

Current Online Gambling Protections

In addition to the Interactive Gambling Act 2001, the Australian Government, together with states and territories, has introduced a suite of minimum consumer protections for people who gamble online.

The National Consumer Protection Framework for Online Wagering includes ten measures to empower individuals and minimise the harm from online gambling. These include:

  • Prohibiting lines of credit
  • Restricting the use of payday lending
  • Three-day customer verification
  • Restrictions on incentive-based marketing
  • Account closure ease
  • Voluntary gambling limits
  • Activity statements to increase awareness
  • Consistent anti-gambling messages
  • Online gambling staff training
  • National self-exclusion register

But despite these measures, online gambling still presents a big risk because of the predatory nature of the companies that run it.

The Predatory Tactics at Play

Online gambling companies use a range of tactics to pull us in, get us to spend more and facilitate addiction. Their job is, after all, to make a profit. Why would they want us to be sensible gamblers? Problem gamblers spend more!

So what tactics are they using? Here are a few:

  • Bonuses and promotions - They frequently offer bonuses, promotions, and loyalty programs to attract and retain players. These incentives can include welcome bonuses, free bets, cashback, and other rewards that enhance the overall gambling experience.
  • Aggressive advertising - High-profile gambling advertising in Australia is prolific and powerful. According to the Australian Gambling Research Centre (AGRC), two in five Aussies are exposed to sports or race-betting gambling ads four or more times a week.
  • Personalised marketing - They use data analytics to create personalised marketing campaigns. They may send targeted emails or ads based on a player's previous gambling behaviour, preferences, web search or browsing history, making the offers seem more relevant and appealing.
  • Mobile apps and notifications - Mobile gambling apps and push notifications make it easier for players to access gambling services anytime, increasing convenience and potentially leading to impulsive gambling behaviour.

Gambling Ruins Lives — and Finances

Gambling may offer a quick buzz in the short term, but the long-term effects can be significant. As well as the social and psychological impact, financially, it can be crippling—and one of several reasons for debt.

One of the main reasons gambling can lead to debt is the phenomenon known as ‘chasing losses.’

After experiencing a loss, some people feel an intense urge to continue gambling, hoping to recoup their losses. Unfortunately, this only exacerbates the situation, pushing them further into debt.

People also reach to credit cards and high-interest loans to feed their addiction. Again, exacerbating this. In some cases, it can lead to crime to fund it.

Awareness, Education and Gambling Help Online

Being aware and educating yourself about the predatory nature of online gambling is the first step to avoiding falling prey to it. It can help you exercise caution when engaging in online gambling platforms.

Setting limits on gambling activities, understanding the odds, and only using reputable and licensed operators are essential steps to protect yourself from potential harm.

In addition, seeking support from responsible gambling resources, such as helplines and support groups, can be hugely beneficial if you feel you’re developing problematic gambling behaviour or you’re concerned about someone else’s gambling (friends, family, colleagues).

Try Gambling Help Online - one of our social support partners. Gambling Help Online offers a range of support, including online resources and a free, confidential 24/7 helpline or online chat. You could also try the National Gambling Helpline.

If you think you might have a gambling problem and you’re experiencing financial difficulties due to online gambling, get in touch with our team of debt solution specialists today by calling 1800 534 534 for professional, non-judgmental support and guidance.