The streaming service platform Kayo is in big trouble after breaching gambling advertising rules. According to the current regulations imposed by Australian authorities, there should be no gambling ads shown during live sports events between 5 am and 8:30 pm. The said rule also applies to the five minutes before and after the live event.
During the Fremantle Vs Collingwood AFL match in May 2022, Kayo was found breaking the aforementioned rules, showing gambling ads within the five-minute time slot before the event started as well as during scheduled breaks.
Following the breach of the advertising rules, Kayo was slapped with a formal warning from the Australian Communications and Media Authority (ACMA).
Gambling Advertising Becoming Serious Issue among Australians
In the last few months, wagering advertising has been a hot topic and a subject of heavy criticism following the recent inquiry into online gambling in Australia. Tabcorp CEO, Adam Rytenskild commented on the issue with gambling advertising, saying it “has gone too far”.
According to recent research conducted by the Australian Gambling Research Centre, 53% of Australians would support a complete ban on any gambling advertising before 10:30 pm. That includes gambling content shown on media outlets like radio, TV, live stream and on-demand platforms.
When commenting on the case, Nerida O’Loughlin, ACMA chair, underlined that streaming services are required to follow the same rules, which apply to traditional broadcast channels. She added that gambling advertising during live sports events has become a severe issue for Australians. O’Loughlin shared that parents deserve to enjoy live sports games with their children without worrying about them seeing gambling as a part of sports events.
Technical Error was the Reason for Wrong Gambling Ad Placement
A spokesperson for Foxtel Group, which is Kayo’s parent company, ensured the mistake was due to a system error rather than any malicious intent on Kayo’s part. During the investigation initiated by the ACMA, Streamotion, which is Kayo’s digital B2C streaming and technology partner, admitted that an “edge case bug” was the reason for the incorrect placing of the gambling ad.
According to Streamotion’s explanation, the said edge case bug caused a certain number of viewers who joined the streaming platform during the AFL Game to be identified as individuals who were not watching the game on a live basis. This was due to a delay in the system, which was supposed to indicate that the said AFL Game was streamed in real-time for said streaming platform users.
Even though the system did correct itself, identifying these viewers as users watching a live sports event, the said individuals were presented with gambling promotions due to the edge case bug, said Streamotion. Even though the company admitted its mistake, calling it “obviously regrettable”, it notified the ACMA that the errant gambling ads were shown only to about 5,000 to 7,000 Kayo users.
- Author
Olivia Cole
