What Online Casinos Can Learn on Responsible Gambling From The Social Media Ban In Australia?

Instant Gratification and Dopamine Dependency

At the heart of social media, online casinos, and gaming lies the promise of instant gratification. Research consistently shows the way these platforms impact our behaviour by activating the brain’s reward system, releasing dopamine. Dopamine is the chemical that is associated with pleasure and responsible for potentially addictive behaviours.

Scrolling on your mobile or playing at an online casino has similar effects on your brain. Those near-misses and small wins keep you engaged, the same way likes on your posts do. Both systems exploit what neuroscientists call the “dopamine loop,” a cycle that encourages repetitive behaviour. Dopamine surges create short bursts of pleasure, but over time, users can develop a dependency and will require more frequent or intense stimuli to achieve the same level of satisfaction.

Australia’s social media restrictions reflect the growing concerns from parents on how the digital age impacts their children. As with social media, casinos—particularly online platforms—must address the risks associated with manipulating reward pathways and take steps to mitigate potential harm.

Is “Gamble Responsibly” Enough?

Both social media and online casinos rely on self-regulatory measures, such as encouraging users to “scroll mindfully” or “gamble responsibly.” However, research indicates these efforts might not be enough.

A 2019 poll in Australia showed that 70% of respondents believed the phrase “gamble responsibly” was ineffective at reducing problem gambling, and only 3% found it helpful. This mirrors criticisms of social media campaigns promoting “digital wellbeing,” which have also been accused of being more performative than impactful.

The challenge lies in translating the messaging into meaningful actions. Instead of well-crafted slogans, the current climate is the right time to implement stronger safeguards to protect users and address problem behaviours before they escalate.

Younger Demographics at Risk

Adolescents represent a vulnerable group, as their ability to assess risks is not fully developed. Research from Growing Up in Australia shows that nearly 10% of Australian teenagers report engaging in some form of gambling activity, despite it being illegal for minors. While the casino industry has taken steps to limit advertising exposure, the prevalence of gambling-like mechanics in video games and social casinos complicates the issue.

Social casinos, which mimic traditional casino games without the need for real-money bets, are particularly concerning. Games like Candy Crush, with their frequent rewards and in-app purchases, also rely on a similar system to keep users engaged.

Similarly, loot boxes, found in many online games, that offer randomised rewards encourage repeated spending, blurring the lines between gaming and gambling.  Loot boxes in video games operate on a similar psychological principle as slot machines—offering rewards through randomised draws—and have been linked to an increased likelihood of future gambling.

While games like Fortnite introduced measures for transparency to reduce the gambling-like nature of the game, concerns persist about their influence on long-term habits.

Australian statistics highlight the extent of the issue:

• 5% of 16-17-year-olds reported betting on racing or sports in the past year.
• 6% of boys and 3% of girls had bet on sports.
• 4% of boys and 3% of girls had bet on horse or dog races.

The online casino industry has an opportunity to address these concerns by adopting innovative measures to create safer environments, particularly for younger audiences. This could include banning gambling-like mechanics in free-to-play games and offering more robust parental controls.

What the Online Casino Industry Can Learn

The online casino sector has an opportunity to lead by example on ethical innovation and player protection. Our experts at CasinoAus outline three key strategies:

Proactive Regulation

While legal requirements often drive changes, casinos could voluntarily adopt stricter advertising standards and safeguards to protect vulnerable demographics. For example, avoiding targeted promotions for users under 21 or banning advertising during hours when minors are likely to be online could set a new benchmark for responsible marketing.

Leveraging Technology for Player Protection

The gambling industry has access to advanced technologies such as artificial intelligence (AI) and machine learning. These tools could identify at-risk players through behavioural analytics—such as increased frequency of play, higher-than-average spending, or erratic betting patterns—and offer tailored interventions. Personalised alerts, mandatory cooling-off periods, or recommendations for self-exclusion could prevent problem gambling from escalating.

Collaboration with Public Health Experts

Cross-industry partnerships are crucial for addressing complex social issues. Casinos could collaborate with public health organisations, psychologists, and government regulators to implement evidence-based policies. Initiatives like funding educational campaigns or contributing to problem gambling research could further demonstrate the industry’s commitment to societal well-being.

Social Casinos: The Overlooked Factor

Social casinos represent a grey area in the gambling industry, as they blur the lines between traditional gambling and gaming. These platforms use virtual currencies instead of real money, but they replicate the mechanics of slot machines, poker, and other games of chance. Players often purchase virtual chips with real money, creating a dynamic where the financial stakes feel lower but the psychological impact remains significant.

Unlike regulated gambling platforms, social casinos are not subject to the same oversight, allowing them to target younger demographics more freely. Research has shown that exposure to social casino games, as well as gaming mechanics like those found in FIFA or Candy Crush, can increase the likelihood of gambling behaviours later in life. The gambling industry can take the lead by advocating for stricter regulation of these platforms and developing educational resources to inform parents and guardians about their risks.

Entertain Responsibility

The social media ban in Australia is a wake-up call for industries that rely on engaging user behaviour through reward mechanisms. For online casinos, this presents an opportunity to think about responsible gambling innovation. By addressing the neurological impacts gambling has on the brain, the sector can improve player protection while maintaining its role as a source of entertainment.

By using technology, the online casino industry can position itself as a proactive partner in safeguarding the public. It is time to set higher standards for advertising and game design so online casinos can strike a balance between fun and responsibility.

In doing so, the industry not only builds trust but also ensures its long-term sustainability in an increasingly regulated landscape. As CasinoAus emphasises, responsible gambling practices aren’t just good ethics—they’re good business.