Australia’s scambling problem shows up at withdrawal, and new rules target the payment flow

Australia’s fake online gambling problem is increasingly visible not at deposit, but at cash-out: Scamwatch logged 806 scambling reports in 2025, with losses climbing to A$1.6m from A$449,000 in 2024. For PSPs and banks, the useful part is not the fake casino front-end; it is the payment trail, which is exactly where AUSTRAC’s Fintel Alliance says these schemes can be traced.

1. Scamwatch received 806 scambling reports in 2025, up from 677 in 2024. Reported losses rose from A$449,000 to A$1.6m over the same period, and the National Anti-Scam Centre says the real figure is likely higher because victims may assume they lost money through gambling rather than through fraud.
2. More than 45% of reported 2025 losses came from people who identified as First Nations Australians. That matters for detection and outreach, but for payment providers the operational issue is the same: these are deposits into fake gambling platforms, not ordinary card-not-present gambling turnover.
3. The scam usually reveals itself at withdrawal. The deposit goes through, the balance appears to grow, and then the player is either blocked from cashing out or asked to send more money first. AUSTRAC’s Fintel Alliance says genuine gambling platforms never require an additional payment to release winnings or verify identity; that demand is the clearest sign the site is fraudulent.
4. Fintel Alliance also found that scambling sites use money-mule accounts and micro-laundering via PayID, moving victim deposits through chains of small transactions before they can be traced. In practice, that means the risk is not only the fake site, but the payment routing around it.
5. From January 1, 2027, Australian banks and payment companies must take reasonable steps to block transfers to prohibited gambling services under the Interactive Gambling Amendment (Gambling Reform) Act 2026. That shifts the compliance focus from website blocking to payment interception, which is where PSPs will be judged in practice.

The National Anti-Scam Centre’s scambling taskforce, launched in July, brings together regulators, police, banks, telecommunications companies, digital platforms and community groups. It runs until December 9, with findings expected in 2027.