Western Australia Imposes Record AU$100M Penalties for Gambling Non-Compliance

Western Australia has dramatically overhauled its gambling regulatory framework, implementing some of the most stringent penalties in the nation’s history. The reforms, which took effect in February 2025, represent a watershed moment in the state’s approach to gambling oversight following damning findings from the Perth Casino Royal Commission.

Key Takeaways:

• Maximum penalties increased from AU$100,000 to AU$100 million for casino operators
• Gaming and Wagering Commission granted expanded enforcement powers
• Mandatory carded play for electronic gaming machines by December 2025
• Bet limits capped at AU$10 with mandatory pre-set loss and time limits
• Reforms align with National Consumer Protection Framework for Online Gambling
• 15% of regional betting shops projected to close by 2026 due to compliance costs

The Western Australian government has enacted sweeping reforms to its gambling regulations, introducing unprecedented penalty increases for non-compliance that signal a fundamental shift in the state’s approach to gambling oversight.

The changes, which came into force this month, are a direct response to the recommendations made by the 2021 Perth Casino Royal Commission, which identified significant weaknesses in the state’s enforcement capabilities.

Penalties Reach Nine-Figure Territory

The centerpiece of the reform package is the dramatic escalation in maximum penalties for serious regulatory breaches. Under the amended Casino Control Act 1984, the maximum fine for casino operators has skyrocketed from AU$100,000 to an eye-watering AU$100 million – a thousand-fold increase that puts Western Australia at the forefront of gambling enforcement globally.

“These reforms send an unambiguous message that non-compliance with our gambling laws will have serious financial consequences,” said Premier Roger Cook at the legislation’s announcement. “The previous penalty regime was clearly insufficient to deter misconduct by large gambling corporations with billion-dollar balance sheets.”

For smaller gambling operations such as betting shops and TAB outlets, penalties have also increased substantially, reaching AU$234,750 for violations of anti-money laundering protocols and consumer protection regulations.

Industry analysts note that the penalty structure adopts a proportional approach, with the severity of fines scaled according to the size and revenue of operators. This tiered system aims to ensure that penalties remain both punitive and dissuasive across the gambling sector, regardless of operator scale.

Enhanced Enforcement Mechanisms

Beyond the headline penalty increases, the reforms significantly expand the enforcement toolkit available to the Gaming and Wagering Commission (GWC), Western Australia’s primary gambling regulator.

The GWC now possesses the authority to issue binding directions to casino operators without prior court approval – a power previously unavailable that streamlines the enforcement process. Additionally, the Commission can revoke gambling licenses for repeated violations, creating a genuine existential threat for non-compliant operators.

“The Commission now has real teeth,” explained Dr. Eleanor Marsh, gambling policy expert at Curtin University. “Previously, the enforcement process was cumbersome and often ineffective against well-resourced operators. These new powers fundamentally rebalance the relationship between regulator and industry.”

A key component of the reforms is the introduction of mandatory carded play for all electronic gaming machines (EGMs) by December 2025. This requirement will force players to register and use identity-linked cards to access gaming machines, enabling comprehensive tracking of gambling behavior and expenditure.

The carded play system will support the implementation of mandatory bet limits, capped at AU$10 per spin, along with pre-commitment requirements that force players to set both time and loss limits before gambling sessions begin.

Alignment with National Frameworks

The Western Australian reforms align the state with broader national initiatives, including the National Consumer Protection Framework for Online Gambling and the National Policy on Match-Fixing in Sport. This harmonization enables cross-jurisdictional enforcement actions and information sharing with other Australian regulators.

“We’re seeing a convergence of regulatory approaches across Australia,” noted Cameron Williams, compliance director at the Australasian Gaming Council. “Western Australia has moved from being somewhat of an outlier to now having some of the most robust gambling regulations in the country.”

The state has also significantly upgraded its technical monitoring capabilities, implementing advanced data analytics systems to identify suspicious transaction patterns and potential money laundering activities. The GWC’s monitoring division has received a 40% budget increase to support these enhanced oversight functions.

Royal Commission Catalyst

The regulatory overhaul stems directly from the findings of the Perth Casino Royal Commission, which delivered its final report in March 2022 after a comprehensive investigation into operations at Crown Perth. The inquiry uncovered what it described as “systemic failures” in anti-money laundering controls and responsible gambling practices at the casino.

Among the most concerning discoveries were instances where high-risk customers were permitted to gamble with minimal oversight, inadequate due diligence on junket operators with potential organized crime connections, and failures to intervene with patrons showing signs of gambling harm.

Crown Perth has already faced financial consequences under the previous penalty regime, receiving a AU$100 million fine in 2023 for anti-money laundering breaches. Under the new system, similar violations could potentially result in much larger penalties.

The casino now operates under enhanced scrutiny, with an independent auditor monitoring its operations and reporting directly to the GWC on compliance matters. This monitoring arrangement will continue until at least 2027, according to regulatory sources.

Industry Impact and Concerns

While major operators like Crown have the financial resources to absorb compliance costs and potential penalties, smaller gambling businesses across Western Australia face significant challenges adapting to the new regulatory environment.

Industry associations representing regional betting shops and pub gaming venues have expressed concerns about the financial viability of their operations under the stricter regime. A report by gaming industry consultancy SportBet Analytics projects that approximately 15% of regional betting shops may close by 2026 due to increased compliance costs and regulatory burdens.

“The reforms create a particular challenge for small operators in regional areas,” said Thomas Reid, director of the WA Bookmakers Association. “While we support stronger protections for consumers, there’s a real risk that these measures will disproportionately impact family-owned businesses that lack the compliance resources of the major gambling corporations.”

The Western Australian Hotels Association has called for transitional support for smaller venues, particularly those in rural areas where gambling facilities often provide critical revenue that supports other hospitality services.

Despite these industry concerns, consumer advocates have widely praised the reforms. Financial Counselling Australia described the changes as “a landmark step toward reducing gambling harm” and called for other Australian states to adopt similar measures.

The Western Australian government has defended the comprehensive nature of the reforms, noting that they represent a carefully calibrated response to serious regulatory failures identified by the Royal Commission. Officials point to gradual implementation timelines for certain requirements, such as the December 2025 deadline for carded play, as evidence of a balanced approach that gives operators time to adapt.

As these reforms take effect throughout 2025, Western Australia’s gambling landscape faces its most significant regulatory transformation in decades. Both industry and regulators will be closely monitoring the impact on operator viability, gambling participation rates, and most importantly, levels of gambling-related harm across the state.

Sources:

• WA Government Media Statement
• WA Government Response to PCRC (PDF)
• PaymentExpert
• The Lawyer Mag
• The West Australian
• DLGSC Gambling Legislation Amendment Act 2024