The executives of some of the largest media, sports and wagering businesses in Australia are preparing for potential changes to be brought to advertising rules that may result in the implementation of a full ban on gambling advertising.
A large number of sports, wagering, and media sources, who asked to remain anonymous, shared they expect the parliamentary Standing Committee on Social Policy and Legal Affairs report to make a recommendation for a full ban on gambling advertising to be rolled out over a four-year period. The recommendations delivered by the committee, however, are not binding for the Federal Government of the country.
Although a full ban on gambling advertising is considered quite an extreme measure, the media and the gambling industry of Australia have both issued warnings about the potentially negative impact that such a move would have on their businesses.
Gambling Advertising Can Increase Gambling-Related Harm Rates, Campaigners Say
Currently, poker machines are considered the form of gambling that is the biggest cause of gambling-related harm in Australia. According to reports, most problem gamblers who seek treatment for their addiction are actually hooked on the controversial pokies.
Furthermore, many gambling-related harm experts believe that gambling advertising can encourage more vulnerable people who already deal with gambling problems and younger people to seek gambling that they would otherwise stay away from.
The organisation that currently represents the largest sports betting operators in Australia – Responsible Wagering Australia (RWA) – has argued that restricting regulated betting providers from advertising will not have the desired effect but will only encourage people at risk of developing problem gambling behaviour to seek out unregulated operators who are not licensed in the country and do not comply with any of the rules that apply to the regulated gambling sector.
According to the opponents of the full gambling advertising ban, any new limits imposed on the sector would significantly affect the commercial television broadcasters and the free services offered to Australian residents. That is exactly why television broadcasters have insisted on the implementation of balanced measures and reductions in other regulatory burdens to even out the negative effects that the new rules are expected to have on wagering, media, and sports companies.
Gambling Remains a Major Advertising Category in Australia
Gambling is still one of the top 20 biggest advertising categories in the country, despite it has dwarfed by other categories, such as food and automotive.
According to data provided by Nielsen’s Ad Intel Patel, gambling companies spent approximately AU$310 million on advertising last year, with the top five spenders including Tabcorp, Sportsbet, Entain (through its Ladbrokes and Neds brands), and Pointsbet. The figure represented a year-on-year increase from previous years, with the gambling sector spending AU$271.3 million in 2020, and AU$287.2 million in 2021. For reference, gambling companies spent AU$89.7 million on advertising in 2011.
Sources familiar with the matter commented that more than 50% of the aforementioned spending was paid to commercial television networks, which have been among the most-preferred platforms to advertise gambling services because of their reach to free-to-air audiences. Digital advertising, including online social media platforms such as YouTube, Instagram, and TikTok, was the second-most used medium.
Furthermore, there has been a large number of long-term partnership deals signed between Australian broadcasting groups and local sporting bodies in the last two years, including some agreements with the Australian Football League (AFL), the National Rugby League (NRL), Tennis Australia, and Cricket Australia. These agreements have seen some industry sources suggest that commercial networks across the country could seek a certain discount in case they lose out on gambling advertising money as a result of further restrictions. All sporting rights deals that are currently in place were once agreed upon economics that included gambling advertising.
As mentioned above, broadcasting groups in Australia fear that a full ban on gambling advertising will unfairly target traditional media channels, such as TV and radio channels, which are already subject to strict regulatory rules, while new media channels (and digital media platforms) will be left outside the scope of the regulatory overhaul.
- Author
Daniel Williams
