Yes, under the Interactive Gambling Act 2001, online betting on racing and sports is legal in Australia. However, under the IGA it is an offence to provide or advertise real money online interactive gambling services – like online pokies or casino games casino – to Australian residents.
It is not illegal for the average Australian citizen to play online pokies or casino games, but there are serious risks in using these services, with the biggest risk being that you may never see your winnings – especially if you win big.
If you win big, you will be asked to KYC (Know Your Customer) your account before the withdrawal is processed. During this process, it is possible for the online casino to not accept your KYC because you come from a prohibited jurisdiction.
For this reason alone, it is best to stick with licenced and regulated Australian betting sites, where KYC is usually very straightforward, and you are guaranteed to receive your winnings.