PROHIBITION of online poker in Australia has failed to halt the industry's growth, thanks to the brazen marketing tactics of offshore companies and a reluctance to prosecute illegal operators.
Australian visitors to poker websites are increasing by about 20 per cent a year and it is estimated $333 million will flow offshore this year from Australian players alone.
Most of the companies offering online poker have bases in tax havens such as Britain's Channel Islands, Gibraltar or Native American reservations in Canada, although some are listed on the London Stock Exchange since Britain legalised interactive gaming. Gibraltar-based 888 is the most aggressive, using sports stars such as Test cricketer Shane Warne and AFL footballer Brendan Fevola to endorse its paid sites.
Fevola was an ambassador for 888.com before he admitted to racking up huge gambling debts, mainly through playing online poker. Two of its sites - au.888.com and 888.com - are under investigation by authorities.
To get around the advertising ban in Australia, poker companies have started heavily spruiking their play-for-free sites, typically with ".net" domain names. Industry lawyer Jamie Nettleton, of law firm Addisons, said it was a legally untested "grey area".
Ireland- and Alderney-based poker site Full Tilt has this year sponsored the Roosters in the NRL competition, and Isle of Man-based private company Poker Stars sponsors the Cronulla Sharks. Both use their legal ".net" sites. This sponsorship is the subject of an investigation by the federal government's Digital Economy department.
Online poker has also lifted its presence in Australia through sponsorship of pub poker, which has overtaken trivia as a social pub game. National Poker League spokesman Richard O'Neill said of his 250,000 members, 91 per cent also played online poker.
Mr O'Neill said he had sought extensive legal advice before entering a sponsorship arrangement with FullTilt.org. However, he had received "seven-figure" offers from other online poker websites to promote the money-wagering websites.
Dominated by tech-savvy young men, it's an ego-ridden pursuit, says Scott Stewart, who quit his job as a chef in 2003 to play online poker for a living. Stewart says he can earn more than $115,000 a year from poker. Last year, he won $2 million at the Aussie Millions poker championships at Crown Casino.
"Poker is a bit like sex: everyone thinks they are really good at it and not many people are," Stewart says. "It's an ego-filled game."
He says 2 to 5 per cent of poker players make steady money while the rest steadily "donate".
Researcher Shaaron Kapcelovich, from Southern Cross University, said the potential for problem gambling was "huge".
"I looked at 43 responsible gambling protections, and I looked at 30 websites. The protection was very minimal," she said.
Frequently Asked Questions about this Article…
Why is online poker still growing in Australia despite prohibition?
Prohibition hasn’t stopped online poker because offshore operators use brazen marketing tactics, Australians keep finding and visiting sites (about 20% more visitors each year), and authorities have been reluctant to prosecute illegal operators. The article estimates about $333 million will flow offshore from Australian players this year alone.
Which offshore jurisdictions and companies are prominent in the online poker market mentioned in the article?
Many online poker companies are based in tax-haven jurisdictions such as Britain’s Channel Islands, Gibraltar and Native American reservations in Canada. The article highlights Gibraltar-based 888 as an aggressive operator, and mentions Full Tilt (Ireland/Alderney-based) and Isle of Man–based PokerStars as active sponsors in Australia.
Are any online poker sites or sponsorships under investigation in Australia?
Yes. The article says two 888 sites (au.888.com and 888.com) are under investigation. It also reports that the federal Digital Economy department is investigating sponsorship arrangements by Full Tilt and PokerStars with NRL clubs.
How are poker websites working around Australia’s advertising ban?
To circumvent the advertising ban, many poker companies heavily promote 'play-for-free' sites that use .net domains — a legally untested 'grey area' according to industry lawyer Jamie Nettleton. These sites let companies maintain a public presence while claiming to promote non-wagering products.
How do sports and pub sponsorships feature in online poker marketing in Australia?
Offshore poker companies sponsor major Australian teams (Full Tilt with the Roosters, PokerStars with the Cronulla Sharks) and back pub poker leagues. The National Poker League, with about 250,000 members, says 91% of its members also play online, and operators have offered seven-figure deals to promote wagering sites.
What consumer protection and responsible gambling issues does the article raise?
Research cited in the article found minimal responsible-gambling protections across 30 poker websites, and experts warn the potential for problem gambling is 'huge.' High-profile examples (such as an ambassador later admitting large gambling debts) underline the social and consumer-protection concerns.
What are the economic implications for Australian players and investors from offshore online poker activity?
Economically, the article estimates roughly $333 million will flow offshore from Australian players this year, representing lost local revenue. For investors, offshore companies may generate growth from the Australian user base but also carry exposure to regulatory, reputational and enforcement risks.
What regulatory and reputational risks should everyday investors watch for in online poker companies?
Investors should watch for government investigations, changing advertising rules and enforcement attitudes, and sponsorship controversies that can damage reputation. The article notes investigations into major operators, legal 'grey areas' like .net promotion, and examples of celebrity endorsements tied to gambling harm — all factors that can affect company value and investor risk.
Call 1300 880 160
Start a chat
Schedule a call
