Are Traditional Aussie Casinos On The Decline?
We Aussies love a flutter. Currently, there are licensed casinos operating across the country. And, while iGaming hasn’t been regulated in the country, many Australians are taking their casino gaming online. However, while the number of casinos has remained stable, the revenue they generated has contracted.
Australia’s Love Of Gambling
Australia has a love of gambling in a lot of different forms. Card Player, the home of Australian gambling, lists a host of poker tournaments and games, as well as details of casino games that, according to poker expert Ricky Davies, have proven very popular with Australian gamblers. Pokies are especially popular in the country: arguably even more so than in the rest of the world. Slot machines are popular because they are easy to learn, can offer big jackpots, and, in Australia especially, they can be found in venues from local bars to any of Australia’s traditional casinos. Speaking of which…
Australian Casinos
There are 14 casinos in Australia, with most major towns and cities having at least one. The most recently opened was the Crown Sydney, which opened in December 2020. Prior to that the Reef Hotel Casino opened in 1996 with a handful of casinos having opened in 1995 and 1994.
The number of openings has slowed considerably, having reached its peak. It is difficult for smaller operators to open casinos, and state governments seem reluctant to grant new licenses.
Casino Revenue
Casino expenditure has also seen a decline. Over the five years to 2024-25, revenue has dropped more than 5% per annum and is expected to have fallen a further 0.7% in 2024-25 as a result of the cost-of-living crisis being faced around the world. However, despite the decline, Australians still spend around $4.7 billion a year at casinos.
Online Casinos
One of the reasons casino expenditure may have dropped is the emergence of online casinos. Many Australian players are turning to iGaming sites because they are more convenient and offer access to a greater variety of games, including large selections of online pokies. Online casinos also tend to offer generous bonuses, to new players but also to existing players. While some retail casinos do offer VIP programs, such bonuses are more common and tend to be more generous at online casinos.
Unlicensed Casinos
However, online casinos are not licensed in Australia, which means players use offshore casinos. These casinos are not permitted to specifically target their marketing to Aussie players, and the government has taken action to prevent sites from doing so in the past. Some social casinos and sweepstakes casinos are available, but these do not strictly permit real-money gambling.
Why Players Are Going Online
Online casinos offer the same games as physical casinos, often with a much larger selection available for play. Players don’t need to leave their houses, and games can generally be played on desktop devices through a web browser, or on mobile devices, via mobile casino apps.
As well as being more convenient because of their mobility, online casinos can also be played anywhere and at any time. They don’t close their doors like physical casinos.
A recent innovation to hit online casinos is that of cryptocurrency. Players can deposit and withdraw funds using cryptocurrencies like Bitcoin and Ethereum. These transactions take minutes to complete, rather than the days that players sometimes have to wait with traditional payment methods.
This payment method has become popular with Australian players, not only because of the increased popularity of cryptocurrencies but also because these innovative payment methods offer greater anonymity and privacy compared to bank cards and bank accounts.
Conclusion
Online casinos have become increasingly popular in Australia, even though they are not regulated in the country. Their convenience, availability, and wide selection of games have seen an increase in their player count and revenue, and this could be taking away from Australia’s physical casino industry because, while the number of casinos has remained fairly constant, expenditure at those casinos has dropped over the past few years. Although it’s far from being an industry crisis, the industry and government are taking note.