The Australian Government has introduced the Interactive Gambling Amendment (Stop the Gambling Ads) Bill 2026 to Parliament and announced a package of amendments to the Interactive Gambling Act 2001 (Cth) (IGA) commencing 1 January 2027. The reform package is at the proposed legislative stage, subject to parliamentary passage. The measures include a clarification of the regulatory status of subscription-based rewards programs that operate as recurring lottery-style prize draws, which the Government characterises as 'shadow lottery' arrangements currently outside Commonwealth-level regulation.
The IGA as currently in force does not regulate subscription-based rewards clubs that run frequent prize draws at the Commonwealth level. The Government's consultation paper identifies these structures as engaging lottery provisions under state and territory legislation without consistent Commonwealth oversight. The proposed IGA amendments would bring online trade promotion lotteries within a defined regulatory category, aligning consumer protection requirements with those applied to other lottery products regulated at state law level.
Online platform operators, subscription-based rewards program providers, and retail businesses running recurring prize promotions must assess their structures against the new classification once the amendments pass. Operators currently marketing rewards clubs as trade promotions, rather than gambling products, face potential reclassification and consumer protection compliance obligations under the amended IGA. The targeted commencement date is 1 January 2027, allowing approximately six months from parliamentary passage for compliance preparation.
The broader reform package also includes gambling advertising restrictions under the same Bill, addressing harms identified in the Murphy Report. The trade promotion lottery measure is one component of a multi-part reform agenda. Final legislative text is subject to parliamentary debate and amendment. State and territory lottery regulation continues to apply in parallel with the proposed Commonwealth measures.
Licentium advises online gaming operators, digital platform businesses, and iGaming firms on Australian and cross-jurisdictional gambling regulatory compliance. We can assist with assessing the impact of the IGA amendments on existing promotional structures and compliance planning for the January 2027 commencement. Work we undertake includes iGaming regulatory advisory, trade promotion compliance, online gambling licensing, advertising restriction compliance, and cross-jurisdictional gambling regulatory strategy.