Amusement, gambling, and recreation facilities insurance

For more on this part of the insurance industry:

1. visit our entertainment insurance page for a look at all products in this sector
2. or focus in on all of the amusement, gambling, and recreation facilities insurance products available on IB Markets!

What is amusement, gambling, and recreation facilities insurance?  

Amusement, gambling, and recreation facilities insurance provides specialised coverage for venues like amusement parks, casinos, and recreational centres. This insurance safeguards against risks such as accidents, property damage, and liability claims. The value of such activities in the country is expected to grow by 2030, but this will require more legal and insurance changes. 

Australia's rich history of gambling and other entertainment activities, deeply embedded in its culture, shows the importance of comprehensive insurance for these facilities.  

Recent regulatory issues have impacted major casino operators, highlighting the need for better insurance coverage. Operating such venues involves substantial costs and makes insurance essential to mitigate financial risks. 

Amusement, gambling, and recreation facilities insurance: industry trends and emerging risks 

Australia’s amusement, gambling, and recreation facilities insurance sector is encountering challenges due to economic pressures and rising operational costs. The ASBFEO Small Business Pulse reports a 0.1% quarterly and 1.4% annual decline in small business activity, indicating a temporary shift in these industries. Other major concerns include: 

• gaming reform and its impact on insurance: new gaming laws in Australia are reshaping insurance needs for gambling and recreation facilities 

• insurance crisis and limited capacity: rising premiums and reduced coverage options threaten amusement and recreation businesses 

• cyber threats targeting entertainment facilities: casinos and recreation centres face growing risks of hacking and data breaches 

Rising insurance premiums are also making it increasingly difficult for many operators to afford necessary coverage.  

Brokers should advise clients to explore alternative risk management strategies and consider discretionary mutual funds to mitigate these challenges. 

Amusement, gambling, and recreation facilities insurance FAQs 

What is the meaning of amusement and recreation activities? 

Amusement and recreation activities involve operations that provide leisure and entertainment services to the public. In Australia, this includes facilities like amusement parks, theme parks, and leisure centres. 

What is the difference between amusement and recreation? 

Amusement activities are designed for entertainment and fun, such as rides and games in amusement parks. Recreation activities focus on relaxation and physical well-being, like sports and fitness programs. 

What are common amusement, gambling, and recreation facilities insurance coverage options? 

Common insurance coverage options for these facilities include: 

• public liability insurance: protects against claims of injury or property damage by third parties 
• property insurance: covers damage to buildings, rides, and equipment 
• business interruption insurance: compensates for lost income due to unforeseen events causing operational downtime 
• cyber liability insurance: guards against losses from cyber-attacks and data breaches 

Another important coverage is workers' compensation insurance, which covers employees' injuries at work and ensures compliance with Australia’s Work Health and Safety (WHS) Act 2011. 

Who typically needs amusement, gambling, and recreation facilities insurance coverage? 

Stakeholders in Australia who need this insurance include:  

• operators of large amusement parks and theme parks, which attract thousands of visitors daily  

• casino operators across major Australian cities rely on this coverage to address risks tied to gaming operations and customer interactions 

• local councils managing recreational facilities and organisers of large-scale events also require amusement gambling recreation facilities insurance 

What are the sectors of gambling? 

The gambling industry comprises several sectors, including: 

• casinos: facilities offering table games and slot machines 

• lotteries: games of chance involving ticket purchases for prize draws 

• sports betting: wagering on the outcomes of sporting events 

• online gambling: internet-based betting platforms offering various games and betting options 

Each sector has unique regulatory and operational considerations. 

What are examples of gambling activities? 

Examples of gambling activities include: 

• poker: a card game where players wager over the best hand 

• roulette: a game where players bet on numbers or colours on a spinning wheel 

• slot machines: electronic games of chance with spinning reels 

• blackjack: a card game where players aim to have a hand value closest to 21 

These activities are common in casinos and gambling venues. 

What is the meaning of amusement facilities? 

Amusement facilities are venues that provide entertainment attractions, such as rides, games, and shows. Examples include amusement parks, arcades, and theme parks. These venues are designed to entertain and engage visitors. 

How does amusement, gambling, and recreation facilities insurance help protect clients? 

It helps clients by covering costs if someone is injured at an amusement park or during a casino event. It also protects against property damage from events like floods or bushfires, which are common in Australia.  

Amusement, gambling, and recreation facilities insurance guarantees businesses can recover quickly if they need to close or reduce operations because of unexpected problems.