Australia Launches Taskforce Against Fake Casino Scams

Australian authorities have launched a new cross-sector initiative to investigate and disrupt a growing scam involving fraudulent online gambling platforms that imitate legitimate betting services while withholding funds from users.

The National Anti-Scam Centre, which operates under the Australian Competition and Consumer Commission (ACCC), has established a dedicated fusion cell to address the issue, commonly referred to as “scambling”. The move follows a sharp increase in reports and financial losses linked to fake online casino websites, with data suggesting First Nations Australians have been disproportionately affected.

According to Scamwatch figures, 806 scambling reports were recorded in 2025, compared with 677 reports the previous year. Reported losses climbed from approximately A$449,000 in 2024 to A$1.6 million in 2025. Authorities believe the true scale of the problem is substantially larger than official figures indicate.

“These scams create legitimate-looking online gambling platforms to convince consumers to deposit money for supposed gambling services, often before blocking withdrawals or demanding further payments,” ACCC Deputy Chair Catriona Lowe said.

“The National Anti-Scam Centre’s latest fusion cell will seek to better understand these scams which appear to target vulnerable communities and reduce the prevalence of scambling to protect consumers.”

Concerns Over Impact on First Nations Communities

Data collected through Scamwatch has raised concerns about the effect of scambling on Indigenous Australians. More than 45% of reported losses during 2025 came from people who identified as First Nations Australians.

The ACCC is examining whether scammers are specifically targeting these communities through digital channels.

“We need to understand how these scams are targeting First Nations communities so that we can prevent this from happening,” Ms Lowe said.

In separate comments regarding the investigation, Lowe said: “We need to find out if that is true and, if it is true, how it’s being done,” she said.

Authorities believe many victims may not realize they have been targeted by a scam because the fraudulent platforms resemble genuine gambling services.

“Given the nature of this scam, we believe scambling is significantly underreported because people may think they have lost money through gambling, rather than through a scam,” Ms Lowe said.

The fake platforms often mimic the appearance and functionality of legitimate gambling websites and applications. Users are encouraged to deposit money and may initially receive small payouts designed to build confidence. Once larger amounts are deposited, operators may block withdrawals, manipulate outcomes or demand additional payments before allowing access to supposed winnings.

Another tactic involves referral schemes that encourage victims to recruit friends, relatives or members of their communities. “Of course it is not an online casino: it is a sophisticated scam that is designed to take money.”

Fusion Cell Brings Multiple Sectors Together

The newly formed fusion cell will bring together participants from law enforcement agencies, government departments, regulators, financial institutions, telecommunications companies, digital platforms and community support services.

Its purpose is to examine how scambling operations function, identify the methods used to attract users and develop strategies that can interrupt these scams before consumers suffer losses.

“The fusion cell’s work will create a clearer picture of how the scams operate, the impact they’re having on Australians, the factors that are enabling them and how they can be disrupted,” said Lowe.

Authorities in Australia also plan to engage directly with affected communities as part of efforts to better understand how these scams spread and how awareness can be improved.

The taskforce will trial disruption measures across digital platforms, strengthen support pathways for affected consumers and increase public education efforts. The fusion cell is scheduled to continue operating until 9 December 2026, with a report on its findings expected in 2027.

Fusion cells are temporary taskforces that combine expertise from public and private sectors to address emerging scam threats. The scambling initiative is the fourth such fusion cell coordinated by the National Anti-Scam Centre.

Broader Gambling and Regulatory Landscape

Australian law permits licensed operators to offer online sports betting, race wagering and lotteries. Online casino games, real-money pokies and in-play betting services remain illegal under Australian regulations.

Authorities have continued efforts to reduce access to unlawful gambling services. The Australian Communications and Media Authority reported in June that it had blocked 1,751 illegal gambling and affiliate websites since November 2019. More than 230 gambling services have also withdrawn from the Australian market since enforcement measures were strengthened in 2017.

Despite these restrictions, online gambling remains popular among Australian consumers. An Australian Communications and Media Authority survey found that 38% of Australian adults used at least one online gambling product during the six months leading up to June last year, a figure that remained unchanged from the previous reporting period.

Research from the Australian National University showed overall gambling participation declined slightly from 60.3% in 2024 to 58.8% in 2025. However, higher-risk gambling activity increased from 13.7% to 19.4% during the same period. The study also found that 56.1% of people who gambled primarily did so online.

The Australian government has recently announced measures including advertising restrictions, additional action against offshore gambling providers, tighter controls on online lottery products and further development of the BetStop self-exclusion system.

Meanwhile, regulators in other jurisdictions continue to pursue different approaches. New Zealand’s Online Casino Gambling Act 2026 established a licensing framework for online casinos after receiving Royal Assent in April, while Ireland’s new gambling regulator has begun accepting applications for remote betting licenses under a phased licensing structure.