Australian gaming company. How to build an unlicensed gambling business in a reputable jurisdiction?

Australia has one of the most developed gambling systems in the world. Despite its significant economic importance, the government makes efforts to regulate and control gambling to minimize negative social consequences. Gambling regulation in Australia is carried out at the federal, state, and territory levels.

But what if I tell you that it is real to conduct international gambling activities from Australia even without having a special license? Not real, you think? But it’s real.

Let’s first delve into the peculiarities of gambling regulation in Australia. The primary legislation regulating gambling at the federal level is the Interactive Gambling Act (IGA) 2001. This legislation prohibits the provision of certain types of online gambling to Australian residents and regulates the activities of operators providing online gambling services overseas. The law aims to protect consumers and prevent problems associated with gambling.

There are only a few territories that regulate gambling activities on the continent, such as New South Wales, which has the Liquor & Gaming NSW Authority, which oversees the licensing and regulation of all forms of gambling in the state; Victoria, where regulatory functions are performed by the Victorian Commission for Gambling and Liquor Regulation (VCGLR); Queensland, which has an Office of Liquor and Gaming Regulation (OLGR), as a regulator; etc.

As you can see, in Australia, there isn’t a profile gaming regulator that regulates the interactive gaming industry, as for example in the UK, Germany, Malta, and other countries.

The main thing is that the Australian Interactive Gambling Act regulates online gambling services provided to customers in Australia. However, if services are offered to non-residents, then the Gaming Act has no restrictions regarding operating from Australia. 

Key clauses from IGA can highlight it in such a case can be:

• Section 5 of the IGA prohibits the provision of interactive gambling services to customers physically present in Australia.
• Section 15 prohibits an Australian provider from offering online gambling services to Australian residents regardless of the company’s location.
• The IGA’s focus is to control the offering of online gambling services within Australia and to Australian residents. 
• The Act does not govern the operations of Australian-based companies offering services to foreign markets where no service is provided to Australian residents.

In this case, we can conclude that IGA is not applicable to those who wish to use his Australian company for international gaming operations, which means that such a business doesn’t need a license according to aforementioned legislation.

What is more interesting, according to Australian tax legislation, if an Australian-resident company has foreign income and gains carrying on business at or through an overseas permanent establishment and equity distributions from a foreign company made after 16 October 2014 if you had a minimum 10% participation interest in the company, then Australian don’t pay any taxes from this type of income. 

For this type of business, it is crucial obtaining a clear and comprehensive legal opinion from local lawyers will highlight the legality of gambling operations by Australian companies that provide their services only outside Australia.

Anyway, it is critical to note that while the IGA does not impose restrictions on overseas operations targeting non-Australian residents, the company must ensure compliance with the laws and regulations of the country in which it intends to operate. This may include obtaining the appropriate licenses and adhering to local gambling laws.

Despite all this, Australia is recognized as one of the strictest jurisdictions of gambling regulation. You must have a professional legal team that can help you to prevent all risks associated with Australian gambling laws. Conversely, this continent provides us a great chance to start an iGaming project without paying high regulatory fees and complex supervisory procedures. As a result, Australia can become a great shelter to build your iGaming startup easily or to expand your online gambling services to different international markets.