Public policy think tank calls for 2% levy on Aussie gambling operators to cover lost broadcast revenue on proposed advertising ban

Gambling advertising has been a hot topic of late, with the government having recently rejected calls for a blanket ban on sports betting advertising – instead touring the idea of “frequency caps” that limit the number of ads permitted to be shown each hour or during live event broadcasts.

Among the reasons stated for not supporting a total ban is the amount of revenue that would be lost by broadcasters in an increasingly competitive broadcast market, with figures suggesting sports betting companies spent AU$239 million advertising on free-to-air TV, radio and online in 2022/23.

According to The Australia Institute, a “simple solution” to this problem would be to impose a small levy on gambling operators which it says “could compensate the media for the lost revenue.

“So, a levy on gambling revenues of just 1.4% could replace all that lost advertising income. Round it up to 2%, and we could replace some of the money [public broadcaster] ABC has lost in budget cuts as well.

“For the government, even without the levy, giving money to the free-to-air networks and banning the ads would be a small cost compared to the costs that gambling imposes on society.

“For the media, it’s far better than a win-win. Free-to-air networks could sell the advertising slots the gambling companies occupied to other businesses while pocketing the levy as well, producing a revenue bonanza.”

While The Australia Institute’s proposal is likely to gain support from Australia’s vocal anti-gambling groups, it doesn’t address the impact a blanket ban on gambling advertising would have on the influence offshore gaming operators have on the local market.

Speaking with Inside Asian Gaming last year, Julian Hoskins – founder and principal at Senet, noted that prohibition “certainly hasn’t worked in other jurisdictions, and irrespective of gambling advertising restrictions on local operators, you’re still going to see advertising by offshore operators and those that shouldn’t be offering into this market.”

Hoskins added, “I do believe gambling advertising needs to be whittled back, but it should be approached in a carefully measured way so there is a reduction in gambling related harm and so that children aren’t exposed to gambling advertising.

“Advertising on TV at 8pm should not be compared to advertising at midnight. And advertising around the [Melbourne Cricket Ground]is different from advertising around a racetrack where 99% of people attending will be adults.”

Jamie Nettleton, Partner at Addisons Law Firm, explained to IAG that the whole point of issuing betting licenses was to provide access to the local market. “And access to the market is not just access to the market by having customers but being able to market to those customers to allow them to keep on coming through the door. That’s part of the benefit,” he said.

Ironically, while Australia toys with the politically popular message of further limiting the reach of gambling operations, New Zealand earlier this month announced it would for the first time license online casinos under a landmark move designed to minimize harm, support tax collection and provide consumer protections to citizens.

Licensed operators will be allowed to advertise with strict limits, the government explained, but will not be allowed to provide sponsorships to sporting teams or venues.