Another week, another storm circles the gambling industry in Australia as frustrations around the government’s slow progress on gambling reform continues to grow.

Kym Cavigan, a 53 woman from Victoria, leads a lawsuit against Flutter Entertainment’s Sportsbet, the LSE/NYSE gambling giant’s main brand in Australia.

The lawsuit stems from a series of incidents in which accountant Andrew Marshall stole from his clients, with Cavigan being one of them, and whose accounts he took $280,000 from.

Marshall has pleaded guilty, but Cavigan is now taking the legal challenge to Sportsbet, arguing that the firm had an obligation to ensure deposits were not made using stolen funds.

The case shines a light on the concerns around KYC and AML in Australian gaming, as although Marshall was not laundering money the case still raises flags around source of funds checks.

This licensing duty was thrown into the spotlight earlier this year when it was reported the Entain, operator of the Ladbrokes Australia and Neds brands and one of Flutter’s biggest competitors in the country, is under investigation for failing to meet AML requirements.

Meanwhile, political sharks are circling around the Australian gambling industry……

MPs losing patience

It’s been two years since the Murphy report was published, the results of an extensive parliamentary inquiry into gambling’s societal impact headed up by the late MP, Peta Murphy.

The report made 31 recommendations for gambling law reform change in Australia, including curbs on advertising and marketing, a number of player protection measures, and the creation of a central, national gambling regulator.

MPs are getting impatient with the government’s lack of progress on this. According to ABC News, a measure MPs are particularly keen to see adopted is the introduction of a new national gambling regulator.

Policymakers have been targeting the Northern Territory Racing and Wagering Commission (NTRWC) in particular. Regulation in Australia is carried out on a state-by-state basis, but the Northern Territory is often considered the ‘de facto’ national regulator for online gaming with all major Australian web betting companies licensed there.

MPs accuse the regulator of being too close to the industry by benefiting from hospitality gifts while comparing its staffing, according to ABC consisting largely of part-time employees, to the some 300 people working at the UK Gambling Commission (UKGC).

Legislators have been taking to social media this week to express their discontent with the government’s slow progress on gambling. Gambling reform was on the table last year, but PM Anthony Albanese shelved major changes in late 2024 ahead of campaigning for the May 2025 election.

“Gambling regulation in Aus is a national disgrace,” Andrew Wilke MP, an independent MP, former member of the Liberals and the Greens, and a longtime advocate for gambling reform, wrote on X.

He continued: “The govt has ignored the Murphy Report & repeatedly blocked my bill to hold gambling giants accountable. If they won’t listen to evidence, experts or the crossbench, they should at least listen to the community.”

Gambling regulation in Aus is a national disgrace. The govt has ignored the Murphy Report & repeatedly blocked my bill to hold gambling giants accountable. If they won’t listen to evidence, experts or the crossbench, they should at least listen to the community. #auspol #politas pic.twitter.com/hmhT2VCyVW

— Andrew Wilkie MP (@WilkieMP) October 7, 2025

Others like Kate Chaney, also an independent federal MP, have also been expressing frustration on social media.

The MPs’ comments come shortly after an AustralianGamblingResearchCentre’s (AGRC) report found that 65.1% of Australians had gambled in the 12 months prior to October 2024, though admittedly lotteries accounted for the bulk of this.

Another study out today (ANU) showing increasing harm from online gambling: “More than half of all gambling in Australia is now happening online [which is] clearly related to more risky gambling, more frequent gambling and psychological distress.”
Time to act @AnikaWells

— Kate Chaney (@ChaneyforCurtin) October 1, 2025

PM Albanese is facing continuous calls to make good on the recommendations of the Murphy report, including the creation of a federal regulator. The PM has also expressed reluctance to press ahead with some topics however, particularly calls for a blanket ban on advertising.

Coincidentally it was widely reported that Albanese’ desire to avoid a showdown with betting and media firms ahead of the election was a key reason behind the shelving of the Murphy report last November.

It does seem that reform is on the horizon Australia, however, and this will have big implications for the country’s hugely valuable gambling market, which sees estimated total wagering runover of AU$244bn (€145–150bn) and annual gross profit of around AU$32bn (€20bn-€22bn).

The prospect of regulatory changes is not deterring the industry, however. The market continues to welcome new entrants, including XBet, Philippines owned and newly formed NextBet, and Betdragon, whose parent company MintBet also operates the RipperBet, Bet ALpha, Bet Buzz and MintBet brands.

A bitter bidding war between local challenger brand Betr and Japanese tech firm MIXI to acquire PointsBet also seems to be reaching its conclusion, with MIXI securing 66.43% majority ownership of the firm complete with spots on its board of directors.