How casinos could lose license for violating age policy
Introduction
In Australia, the minimum age for online gambling is set at 18. Operators who allow minors to bid or do not provide reliable age verification risk not only fines, but also the deprivation of a license. This article explains what norms are violated, how regulators identify violations, and what steps they take when revoking an activity permit.
1. Legislative and regulatory framework
Interactive Gambling Act 2001 (IGA)
Article 16 of the IGA expressly prohibits the acceptance of bets from persons under the age of 18.
Provides for sanctions - from warning to license revocation.
Broadcasting Services Act 1992 (BSA)
Limits gambling advertising by time and content, but does not directly regulate operator licenses.
BSA violations can be the basis for a comprehensive IGA audit of casinos.
State-level Gambling Acts
Individual states (NSW, VIC, QLD, etc.) have additional requirements for KYC procedures and age checks.
Regional commissions maintain license registers and conduct compliance audits.
2. Grounds for license revocation
1. Admission of minors
Systematic or single confirmation of registration of an account with a date of birth under 18 years.
Falsification of documents or collusion of verification officers.
2. Inefficient KYC and age-gate system
No automated document verification or manual verification procedures.
Using outdated or unreliable eID services.
3. Non-reporting
Late submission of reports on registration attempts and suspicious transactions to licensing authorities.
Concealment of cases of admission of minors.
4. Relapse of disorders
If, after a warning, the operator re-admits minors, the regulator proceeds to revoke the license as at least.
3. Investigation and Recall Procedure
1. Monitoring and on-site inspections
ACMA periodically conducts an online audit of sites: age check points, registration forms, advertising banners.
State Commissions have the right to request data on specific accounts and employees.
2. Advance notice
The regulator sends an official letter (show-cause notice) - a requirement to explain the revealed violations within the established period (usually 14-30 days).
3. Proceedings and hearing
If the operator disagrees, a hearing is appointed: the participation of representatives of the regulator, independent auditors and casino lawyers.
Arguments are heard about systemic measures, remediation plans and company reputation.
4. Decision-making
If the violations are found to be significant, a decision is made to revoke or suspend the license for a period of 6 months to complete deprivation without the possibility of recovery.
The decision is published in the official register of licenses and on the regulator's website.
4. Consequences for the operator
Complete suspension of activities
- blocking the domain at the provider level, removing the application from stores.
Financial losses
- customer refunds, fines up to AUD 1,000,000 or more, loss of investment.
Reputational risks
- loss of trust of partners (payment systems, aggregators), refusal to cooperate from sponsors and psychological services.
Criminal liability
- in some cases, the case is referred to the police for complicity in the involvement of minors, which may lead to criminal prosecution of directors.
5. Examples of precedents
Operator "FastPlay" (NSW, 2023)
24 facts of registration of 16-17-year-old users have been proven.
The license was suspended for 12 months, and AUD 500,000 was fined.
SpinMaster platform (ACMA federal audit, 2024)
An age-gate bypass through a third-party intermediary site has been identified.
The license was revoked without appeal.
6. Recommendations to operators
1. Strengthen KYC procedures
Integrate passport data verification through certified eID services.
Two-step verification with mandatory manual control for new accounts.
2. Monitoring automation
Implement analytics systems for suspicious registrations: by IP addresses, devices, sessions.
Implement regular compliance audits by internal and external auditors.
3. Transparent reporting
Submit age failure statistics and bypass attempts to ACMA and regional commissions in a timely manner.
4. Personnel training
Conduct training for the Verification Service and the Juvenile Identification and Incident Response Support Service.
Conclusion
License revocation is the most serious sanction for online casinos in Australia when admitting minors to gambling. Compliance with IGA and regional laws, reliable age-gate systems, regular monitoring and transparent reporting are key measures to prevent license revocations and maintain legal status on the market.
In Australia, the minimum age for online gambling is set at 18. Operators who allow minors to bid or do not provide reliable age verification risk not only fines, but also the deprivation of a license. This article explains what norms are violated, how regulators identify violations, and what steps they take when revoking an activity permit.
1. Legislative and regulatory framework
Interactive Gambling Act 2001 (IGA)
Article 16 of the IGA expressly prohibits the acceptance of bets from persons under the age of 18.
Provides for sanctions - from warning to license revocation.
Broadcasting Services Act 1992 (BSA)
Limits gambling advertising by time and content, but does not directly regulate operator licenses.
BSA violations can be the basis for a comprehensive IGA audit of casinos.
State-level Gambling Acts
Individual states (NSW, VIC, QLD, etc.) have additional requirements for KYC procedures and age checks.
Regional commissions maintain license registers and conduct compliance audits.
2. Grounds for license revocation
1. Admission of minors
Systematic or single confirmation of registration of an account with a date of birth under 18 years.
Falsification of documents or collusion of verification officers.
2. Inefficient KYC and age-gate system
No automated document verification or manual verification procedures.
Using outdated or unreliable eID services.
3. Non-reporting
Late submission of reports on registration attempts and suspicious transactions to licensing authorities.
Concealment of cases of admission of minors.
4. Relapse of disorders
If, after a warning, the operator re-admits minors, the regulator proceeds to revoke the license as at least.
3. Investigation and Recall Procedure
1. Monitoring and on-site inspections
ACMA periodically conducts an online audit of sites: age check points, registration forms, advertising banners.
State Commissions have the right to request data on specific accounts and employees.
2. Advance notice
The regulator sends an official letter (show-cause notice) - a requirement to explain the revealed violations within the established period (usually 14-30 days).
3. Proceedings and hearing
If the operator disagrees, a hearing is appointed: the participation of representatives of the regulator, independent auditors and casino lawyers.
Arguments are heard about systemic measures, remediation plans and company reputation.
4. Decision-making
If the violations are found to be significant, a decision is made to revoke or suspend the license for a period of 6 months to complete deprivation without the possibility of recovery.
The decision is published in the official register of licenses and on the regulator's website.
4. Consequences for the operator
Complete suspension of activities
- blocking the domain at the provider level, removing the application from stores.
Financial losses
- customer refunds, fines up to AUD 1,000,000 or more, loss of investment.
Reputational risks
- loss of trust of partners (payment systems, aggregators), refusal to cooperate from sponsors and psychological services.
Criminal liability
- in some cases, the case is referred to the police for complicity in the involvement of minors, which may lead to criminal prosecution of directors.
5. Examples of precedents
Operator "FastPlay" (NSW, 2023)
24 facts of registration of 16-17-year-old users have been proven.
The license was suspended for 12 months, and AUD 500,000 was fined.
SpinMaster platform (ACMA federal audit, 2024)
An age-gate bypass through a third-party intermediary site has been identified.
The license was revoked without appeal.
6. Recommendations to operators
1. Strengthen KYC procedures
Integrate passport data verification through certified eID services.
Two-step verification with mandatory manual control for new accounts.
2. Monitoring automation
Implement analytics systems for suspicious registrations: by IP addresses, devices, sessions.
Implement regular compliance audits by internal and external auditors.
3. Transparent reporting
Submit age failure statistics and bypass attempts to ACMA and regional commissions in a timely manner.
4. Personnel training
Conduct training for the Verification Service and the Juvenile Identification and Incident Response Support Service.
Conclusion
License revocation is the most serious sanction for online casinos in Australia when admitting minors to gambling. Compliance with IGA and regional laws, reliable age-gate systems, regular monitoring and transparent reporting are key measures to prevent license revocations and maintain legal status on the market.
