According to RWA CEO Kai Cantwell, the ACMA has blocked over 1,500 illegal offshore gambling sites in the past few years, but the whack-a-mole cycle continues. Overseas operators can quickly resurface with new site addresses, while the bulk of their acquisition can be done through social media (which doesn’t rely on a particular domain name).
Cantwell also cited estimates that offshore gambling sites currently control 36% of Australia’s sports betting market. That diminishes activity from licensed brands that comply with local rules and tax obligations.
Blacklist Would Expand Enforcement Beyond URLs
The proposal from RWA is based on a blacklist with more severe consequences compared to ISP blocking. In this case, the platforms would be forced to delete any advertising and accounts associated with blacklisted overseas operators. Payment services, such as banks and processors, would also be required to stop any transactions associated with the listed entities.
Like many other online safety systems, this one aims to minimize reach and then limit monetization. RWA claims that the most effective approach would be to stop payments and distribution on platforms rather than simply adding a new blocked URL to the list.
Advertising Policy Debate Adds Pressure
The pressure comes as Australia is still debating changes to gambling ads in general. A 2023 parliamentary inquiry report made recommendations that could result in sweeping changes, such as a gradual ban on gambling ads.
RWA is essentially making a case for a more targeted approach: illegal offshore gambling ads should be targeted, but licensed operators shouldn’t be subject to the same restrictions. This is important for regulated businesses that claim they already have to comply with stricter regulations than their offshore competitors.
Expert Takeaway
The challenge for regulators and industry is one of speed: relaunching and remarketing offshore brands can take less time than it does to publish a URL block. A blacklist that requires removals from the main platforms and limits payments would shift the enforcement from access to distribution and revenue. Execution might be the main hurdle, particularly in scope, compliance, and avoiding conflicts with the broader ad reform proposals currently on the table.
