You May Have More Options Than You Think
Australians lose more money to gambling per capita than people in any other country. According to the Australian Institute of Health and Welfare, total gambling losses were estimated at around $31–32 billion in 2022–23, an average of roughly $1,500 per adult.
However, behind those numbers are real people: people who couldn’t stop, whose accounts stayed open when they should have been closed, and who kept receiving promotions and phone calls from operators that knew exactly what was happening. People who lost everything.
Some of them are now taking betting companies to court, and in some cases achieving significant settlements or court outcomes in their favour.
The law has traditionally taken a “gamble at your own risk” approach. However, recent cases have made clear that when a gambling company crosses the line from offering a service into exploiting a person’s addiction, there can be legal consequences. This fact sheet explains when a claim against a gambling company is possible, what the courts look at, and what to do if you think you have been treated unfairly.
Key Takeaways
- It is possible to bring a legal claim against a gambling company in Australia.
- The main legal grounds are unconscionable conduct and misleading or deceptive conduct under the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010 (Cth)).
- An operator that continued to target you with promotions while you were showing clear signs of a gambling problem may have engaged in unconscionable conduct.
- Many claims are resolved through private negotiation without going to court.
- The regulatory environment is tightening, recent changes strengthen the position of people bringing claims.
- O’Brien Criminal & Civil Solicitors has experience running compensation claims for people affected by gambling harm.
Signs a Betting Company May Have Crossed the Line
A claim may be worth exploring if a gambling operator:
- Continued to accept your bets or offer promotions after you showed clear signs of a gambling problem
- Sent targeted bonuses, personal phone calls, or VIP offers designed to keep you gambling
- Ignored escalating loss patterns, frequent deposits, or erratic betting behaviour
- Failed to comply with its responsible gambling obligations under federal or state law
- Advertised “free” bets or promotions with significant conditions that were not clearly disclosed
- Allowed you to continue gambling after you had attempted to self-exclude or set limits
How Gambling Is Regulated in Australia
Understanding the regulatory framework matters because a breach of any of these obligations can strengthen a legal claim.
The Interactive Gambling Act 2001 (Cth) is the main federal law governing online gambling. It prohibits operators from offering certain online casino services to Australians and gives the Australian Communications and Media Authority (ACMA) the power to enforce compliance, block illegal sites, and impose penalties.
The Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010) is the most directly relevant law for individual claims. Section 21 prohibits unconscionable conduct. Section 18 prohibits misleading or deceptive conduct. The ACCC enforces these provisions and has already taken successful action against operators.
The National Consumer Protection Framework for Online Wagering, agreed to by all Australian governments in 2018, introduced 10 consumer protection measures for online betting. These include bans on credit for online wagering, mandatory identity verification before placing a bet, restrictions on inducements to open accounts, and the creation of BetStop, the National Self-Exclusion Register.
State and territory regulators each have responsibility for licensing, compliance, and responsible gambling obligations within their jurisdiction. In NSW, this includes Liquor and Gaming NSW and the Independent Liquor and Gaming Authority.
When Can You Sue a Gambling Company?
Not every gambling loss gives rise to a legal claim. But there are specific situations where an operator’s conduct may go beyond acceptable business practice into unlawful territory.
Unconscionable Conduct
Unconscionable conduct is behaviour that is so harsh, unfair, or predatory that it goes against good conscience. Under section 21 of the Australian Consumer Law, a business must not engage in conduct that is, in all the circumstances, unconscionable in connection with the supply of goods or services.
When assessing whether conduct is unconscionable, courts can consider factors set out in section 22, including the relative bargaining power of the parties, whether one party was at a special disadvantage due to addiction, mental health issues, or financial vulnerability, whether the stronger party knew about or should have known about that disadvantage, and whether the company used undue pressure, targeted inducements, or unfair tactics.
In the gambling context, this means a betting company that keeps promoting bets to someone showing obvious signs of a gambling crisis, escalating losses, frequent deposits, desperate betting patterns, may be liable for unconscionable conduct, depending on the evidence.
It is worth noting that the Full Federal Court confirmed in ACCC v Quantum Housing Group [2021] FCAFC 40 that unconscionable conduct under section 21 does not require the person to have been vulnerable or at a special disadvantage. The key question is whether the conduct sufficiently departed from the norms of acceptable commercial behaviour.
Misleading or Deceptive Conduct
Section 18 of the Australian Consumer Law prohibits conduct that is misleading or deceptive, or likely to mislead or deceive. Betting companies that advertise “free” bets or promotions with material conditions buried in fine print may fall into this category. The ACCC has successfully taken action against Bet365 over “free bet” promotions that were found to be misleading.
Read our civil law case studies.
What Evidence Supports a Claim?
Gathering evidence early makes a real difference. The records that tend to be most useful include:
- Betting account records: transaction histories, deposit and withdrawal records, account statements
- Promotional materials: emails, text messages, app notifications, and phone call records from the operator encouraging you to keep gambling
- VIP or loyalty programme records: correspondence or offers linked to VIP status, bonus bets, or cashback promotions
- Your own communications with the operator: any contact about closing your account, setting limits, or flagging concern about your gambling
- Bank and financial records: statements showing the frequency and size of deposits to gambling accounts
- Medical or counselling records: evidence of treatment for gambling addiction or related mental health conditions
- Self-exclusion records: evidence of attempts to self-exclude through BetStop or any operator’s own exclusion system
Our solicitors are experienced in gambling harm claims. We can help you identify what records are most relevant and assist you in obtaining them, including through formal requests to the operator.
What Compensation Can You Claim?
If a gambling company is found to have engaged in unlawful conduct, a court can order a range of remedies under the Australian Consumer Law, including compensation for financial losses, recovery of some or all of the money lost as a result of the operator’s conduct, damages for non-financial harm such as emotional distress and psychological impact, injunctions requiring the operator to stop particular conduct, and voiding or variation of contracts entered into as a result of unconscionable conduct.
As our own experience shows, many claims are resolved through negotiation or private settlement long before they reach a courtroom. A formal letter of demand, backed by evidence and clear legal arguments, is often the most effective first step.
Real-World Scenarios
Scenario 1: VIP Promotions After Repeated Losses
A person deposits money into their betting account multiple times a week, escalating their spend over three months. During this period, the operator sends them targeted bonus offers, a personal call from a “VIP manager,” and cashback promotions after significant losses. The operator’s own records show they flagged the account for elevated activity but continued contact anyway. This pattern may support a claim for unconscionable conduct.
Scenario 2: A Failed Self-Exclusion
A person registers with BetStop to block themselves from all licensed Australian online betting services. Shortly after, they discover that one operator has allowed them to continue placing bets. Under the Interactive Gambling Act 2001 (Cth) and the National Consumer Protection Framework, this is a serious breach, and the ACMA has already fined multiple operators for exactly this failure.
Scenario 3: Hidden Conditions on Promotions
A person signs up for a betting account after seeing an advertisement for a “$200 free bet.” The fine print, not prominently disclosed, contains conditions that effectively prevent the bet from ever being withdrawn. Losses follow. This may constitute misleading or deceptive conduct under section 18 of the Australian Consumer Law, consistent with the ACCC’s successful action against Bet365.
How the Law Is Changing
The regulatory environment around gambling in Australia is shifting, and these changes matter for people considering a claim.
The parliamentary inquiry into online gambling (“You Win Some, You Lose More”) made 31 recommendations, including a phased ban on online gambling advertising and a ban on inducements to gamble.
Since June 2024, the use of credit cards and cryptocurrency for online wagering has been banned under the Interactive Gambling Act. The ACMA has fined multiple operators for breaching BetStop self-exclusion rules, including Unibet (fined $1 million), PointsBet, and Tabcorp. Victorian bookmaker MintBet was fined $100,000 after allowing a customer to gamble for 35 hours within a 50-hour window.
These developments signal a growing expectation that gambling companies will be held to higher standards. If you believe you have been harmed by an operator’s conduct, the current regulatory climate may strengthen your position.
Frequently Asked Questions
Do I need to have lost a very large amount to bring a claim?
Not necessarily. While the size of the loss is relevant to whether a claim is economically viable, what matters most is the nature of the operator’s conduct. A solicitor can assess whether a claim is realistic based on your specific circumstances.
Does the claim have to go to court?
No. Many gambling harm claims are resolved through private negotiation after a formal letter of demand is sent. You do not need to commence court proceedings to recover losses.
What if I kept gambling even after I knew I had a problem?
This is a real issue, and courts will consider it. However, it does not necessarily defeat a claim. If an operator had knowledge of your gambling problem and continued to target you with inducements regardless, that conduct may still be found to be unconscionable. Your contribution to the harm may affect the amount of compensation rather than eliminate the claim entirely.
What if the operator is based overseas?
The Australian Consumer Law and the Interactive Gambling Act apply to conduct directed at Australian consumers, regardless of where the operator is based. However, the practical difficulty of enforcing against overseas operators is a factor worth discussing with your lawyer.
Is self-exclusion a prerequisite for a claim?
No. Self-exclusion is a relevant piece of evidence, particularly if the operator allowed you to continue gambling after you registered with BetStop. But it is not a requirement for bringing a claim.
Taking the First Step
If you believe a betting company took advantage of you while you were struggling, it is worth getting advice. You do not have to have gone to court, and you do not need to be certain you have a case before speaking to a lawyer.
Steps you can take now:
- Keep records. Save betting statements, bank records, promotional emails, and any communications with the operator.
- Self-exclude. If you haven’t already, register with BetStop to block yourself from all licensed Australian online betting services.
- Seek support. Contact the National Gambling Helpline on 1800 858 858 (free, 24/7) or visit Gambling Help Online for free counselling.
- Get legal advice. Speak with a solicitor who understands gambling harm claims.
How O’Brien Criminal & Civil Solicitors Can Help
Our civil law team has experience running compensation claims for people affected by gambling harm, including claims based on unconscionable conduct against betting operators. We understand that the impact of gambling goes far beyond financial loss; it affects relationships, mental health, and quality of life.
If you think a betting company treated you unfairly, we can assess your situation honestly and tell you whether a claim is viable. If it is, we will work with you to pursue the best possible outcome.
Call O’Brien Criminal & Civil Solicitors on 02 9261 4281 or enquire online for a confidential consultation.
This fact sheet is for general information only. It does not constitute legal advice and should not be relied upon as a substitute for advice specific to your circumstances. If you need legal advice, contact O’Brien Criminal & Civil Solicitors for a confidential consultation.
