Are social casinos and gaming simulators legal
1) What are social casinos and gaming simulators
Social casinos are online platforms where players can participate in slots, poker, roulette and other games, but instead of real money, virtual credits, tokens or coins are used, which cannot be directly exchanged for real funds.
Game simulators - programs or applications that simulate gambling for entertainment, training or demonstration, also without real money turnover.
2) Key difference from gambling
In accordance with the Interactive Gambling Act 2001 (IGA) and local legislation, gambling is considered a game where the following are simultaneously present:
Social casinos and simulators, where there is no possibility of converting winnings into real money, are not formally considered gambling and do not require a license in Australia.
3) Why social casinos are legal but nuanced
Allowed - if the currency of the game has no monetary value and cannot be exchanged for real money or goods.
Not subject to licensing - their activities are regulated as online entertainment, not gambling.
Available in the App Store and Google Play without restrictions for AU, if they comply with the rules of the sites.
4) Grey area: buying virtual currencies
Many social casinos allow you to buy additional tokens with real money to continue playing.
If these tokens cannot be exchanged back for money, the game is still considered legal.
However, such mechanics raise questions from regulators, as they stimulate gaming excitement and may be associated with the risks of ludomania.
The ACMA and consumer protection authorities may consider complaints of misleading practices (such as allusions to "real" winnings).
5) Risks for players
Even in legal social casinos, there are potential threats:
6) When a social casino could become illegal
A platform may be found to be in violation of the law if:
7) Examples of enforcement
ACMA in some cases sent warnings to application developers who used hidden monetization mechanics.
In a number of countries (for example, the United States and Canada) there have already been lawsuits against social casinos for "simulation of gambling with real spending" - in Australia, similar precedents are still rare.
8) Withdrawal
In Australia, social casinos and gaming simulators are legal if they do not provide an opportunity to convert virtual winnings into real money. However, the purchase of virtual currencies for real funds is a zone of increased attention of regulators. Players should be aware that even with formal legality, such games can stimulate gambling-like behavior and lead to unnecessary costs.
Social casinos are online platforms where players can participate in slots, poker, roulette and other games, but instead of real money, virtual credits, tokens or coins are used, which cannot be directly exchanged for real funds.
Game simulators - programs or applications that simulate gambling for entertainment, training or demonstration, also without real money turnover.
2) Key difference from gambling
In accordance with the Interactive Gambling Act 2001 (IGA) and local legislation, gambling is considered a game where the following are simultaneously present:
- 1. Randomness element (the game result is determined by the RNG or other random process).
- 2. Rate with monetary value (real money or things with market value).
- 3. Opportunity to win a real reward (money, valuable prizes).
Social casinos and simulators, where there is no possibility of converting winnings into real money, are not formally considered gambling and do not require a license in Australia.
3) Why social casinos are legal but nuanced
Allowed - if the currency of the game has no monetary value and cannot be exchanged for real money or goods.
Not subject to licensing - their activities are regulated as online entertainment, not gambling.
Available in the App Store and Google Play without restrictions for AU, if they comply with the rules of the sites.
4) Grey area: buying virtual currencies
Many social casinos allow you to buy additional tokens with real money to continue playing.
If these tokens cannot be exchanged back for money, the game is still considered legal.
However, such mechanics raise questions from regulators, as they stimulate gaming excitement and may be associated with the risks of ludomania.
The ACMA and consumer protection authorities may consider complaints of misleading practices (such as allusions to "real" winnings).
5) Risks for players
Even in legal social casinos, there are potential threats:
- Formation of gambling habit in minors.
- Encouraging microtransactions, which can lead to unintended spending.
- Aggressive marketing pushing virtual currency purchases.
6) When a social casino could become illegal
A platform may be found to be in violation of the law if:
- Virtual currency or winnings can be exchanged for real money or valuables.
- The game masks gambling bets using "intermediate" tokens, which are then converted into real funds.
- There is integration with platforms that allow you to sell in-game currency to third parties.
7) Examples of enforcement
ACMA in some cases sent warnings to application developers who used hidden monetization mechanics.
In a number of countries (for example, the United States and Canada) there have already been lawsuits against social casinos for "simulation of gambling with real spending" - in Australia, similar precedents are still rare.
8) Withdrawal
In Australia, social casinos and gaming simulators are legal if they do not provide an opportunity to convert virtual winnings into real money. However, the purchase of virtual currencies for real funds is a zone of increased attention of regulators. Players should be aware that even with formal legality, such games can stimulate gambling-like behavior and lead to unnecessary costs.
