Why online slots are banned for Australian operators

The ban on the offer of online slots by Australian operators is enshrined at the federal level in the Interactive Gambling Act 2001 (IGA). This law completely prohibits Australian companies from providing real-money access to slot games via the Internet. The reasons for the ban are related to protecting the population, preventing problem gambling and controlling the gambling industry.

1. Legal basis

The IGA prohibits Australian operators from offering online slots, even with a ground casino or slot machine licence.
The ban applies to any form of interactive slot machines available via the Internet.
An exception is made only for some types of interactive bets (for example, sports betting before the event).

2. The main reasons for the ban

2. 1. Fighting problematic gambling

Online slots have high game speeds and short betting cycles, raising the risk of gambling addiction.
Online access makes the game available around the clock, without physical restrictions, which increases the risk of cost overruns.

2. 2. Lack of complete control

Online, it is more difficult to track the honesty of the random number generator (RNG) and the correctness of the slot.
Online operators can change the parameters of the game (for example, RTP) without the knowledge of the regulator.

2. 3. Protecting players from fraud

Online casinos are easier to disguise as a legal service than a land-based establishment.
Illegal operators often operate in offshore zones, making it difficult to protect the rights of players.

2. 4. Social policy

Australian authorities are seeking to restrict access to high-involvement gambling.
The legalization of online slots is seen as a factor that can increase social costs, including the growth of debts and problem gambling.

3. Role of regulators

The ACMA monitors compliance with the federal ban and blocks sites that offer online slots to Australians.
Regional regulators (OLGR, Liquor & Gaming NSW, etc.) only license land-based machines.

4. Consequences for operators

Violation of the ban threatens with fines of millions of dollars.
Companies may lose licenses to conduct other permitted activities (for example, bookmaking or land casinos).
ACMA cooperates with banks and payment systems to block transactions to violators.

5. Economic aspects

The state receives taxes from land-based machines, where control is more transparent.
Online slots are harder to tax and control in terms of revenue transparency.

Final conclusion

Online slots are prohibited for Australian operators due to a combination of factors: high addictiveness of the game, difficulty of control, risk of fraud and social policies to limit gambling at a fast pace of betting. The ban is aimed at reducing the level of problem gambling and ensuring the transparency of the gambling industry in the country.