The largest online sports betting operator in Australia – Sportsbet – has spent a total of AU$63 million on TV adverts during live sports and racing events over the past 18 months – a figure that more than triples the amount spent by its major rivals Tabcorp and Ladbrokes.
The confidential spending data, compiled by Nielsen researchers and obtained by The Australian Financial Review (AFR), provides information on the extent of local bookmakers’ advertising expenditures at a time when the country’s Federal Government has been considering the potential suspension of TV gambling ads.
As reported in the report, Tabcorp has spent only AU$5 million on TV advertising since the online gambling inquiry of the Federal Government started in the middle of October 2022. Other major market rivals of Sportsbet were also reported to have reduced their spending on the Seven Network, Nine Network, and Network Ten after the beginning of 2023. The Entain-owned Ladbrokes and Neds sportsbook brands have spent a combined AU37.6 million on TV advertising from January 2022 to May 2023.
As previously reported by Casino Guardian, the parliamentary inquiry’s gambling advertising ban proposal has raised significant concern among major broadcasting groups, with local bookmakers already trying to reduce their spending. Some gambling industry representatives have even shared fears that a full ban would cost millions of dollars that would otherwise flow into Australian broadcasters’ and sporting organisations’ accounts.
Two weeks ago, the probe, headed by Peta Murphy, a Labour Party Member of Parliament, recommended that the Australian Government should fully ban TV, radio, and social media gambling adverts.
Advertising on TV Channels Still the Most Commonly-Used Form of Advertising in Australia
Apart from social media platforms that have gained momentum over the past few years, advertising on TV channels has been the most commonly used form of advertising in Australia. That is exactly the reason why the biggest spenders in the sector have been so concerned about the impact of a potential ban on gambling advertising. On the other hand, such a suspension would severely limit the advertising revenue received by local television networks.
As the AFR reported, Nielsen’s data does not take into account the amount spent by gambling and sports betting brands on their in-house stadium adverts or sponsorship deals with professional sports clubs – both of which are also expected to be banned under a recommendation by the parliamentary inquiry mentioned above. The research also does not take into account operators’ advertising on subscription television provider Foxtel and its streaming service Kayo Sports.
However, the data compiled by Nielsen has provided much clarity on just how deep the links between sports betting and key sports and racing events are.
The firm has revealed that the majority of Sportsbet’s adverts are aired during the Australian Football League (AFL) and the National Rugby League (NRL) seasons because the sportsbook operator is currently the official partner of both leagues. According to data from March to September 2022 alone, Sportsbet spent over AU$32 million. During the spring racing carnival (from September to November 2022), the company spent AU$16.8 million. The sportsbook operator, however, reduced its spending on television advertising since October 2022 and was not the only one to do so – pretty much all other sports betting companies spent significantly less money during the inquiry period in comparison to what they spent in the months before.
Sports Betting Operators Still Spend Record Amounts on TV Gambling Advertising
A dramatic decline in Tabcorp’s spending on TV adverts has coincided with the comments made by its chief executive officer Adam Rytenskild as part of the aforementioned parliamentary inquiry. At the time, Mr Rytenskild explained that the sports betting operator would voluntarily cease all advertising on free-to-air TV channels during the day by 2024.
Ladbrokes was also part of the companies that changed their spending during the AFL and NRL finals. The company reportedly has spent a total of AU$20.2 million over a 17-month period.
The News Corp-backed wagering group BetR, which started advertising on Australian TV channels since its launch in October 2022, has so far spent almost AU$15 million. Pointsbet, which recently managed to sell its US assets to Fanatics, spent AU$12.6 million on TV gambling advertising in the same period. BlueBet has been the smallest spender, as it spent a total of AU$3.3 million.
Now, the Federal Government is set to meet with gambling and sports betting companies and broadcasting groups to initiate a process that is set to crack down on issues associated with the local gambling sector as soon as possible.
As previously reported by Casino Guardian, the gambling advertising ban was one of the 31 recommendations made by the parliamentary inquiry headed by Ms Murphy. Other recommendations made by the inquiry include the establishment of a national regulatory body, the implementation of changes to gambling applications’ behavioural algorithms, and the appointment of a special minister focused on the reduction of online gambling-related harm.
TV broadcasting group’s executives and the majority of betting and gambling companies have opposed the proposed blanket ban, saying such a measure would have a detrimental impact on their businesses.
- Author
Olivia Cole
