The proposed ban on gambling advertising could potentially be announced within weeks with discussion surrounding a national online gambling regulator punted, according to reports from the Australian Financial Review.
Social Services Minister, Amanda Rishworth, has said she is still working through the 32 recommendations from the parliamentary inquiry into the danger of online gambling. In addition to the primary recommendation of phasing out all gambling ads over three years, the inquiry suggested a national strategy that would focus on reducing gambling harm and creating a dedicated regulator with responsibility for all licensing and regulation.
However, Rishworth said that a regulator of this nature would require states and territories to hand over powers to the Commonwealth, which she does not believe they were willing to do.
“At this point that is not in the discussions with states and territories,” she said. “What is in the discussion with states and territories is around how we better co-ordinate and move forward a unified effort when it comes to harm minimisation when it comes to online gaming”.
Of the 32 recommendations in the inquiry’s final report, 21 involved issues that can only be dealt with in cooperation with states and territories. When the government gives its response in coming weeks, it is likely some recommendations will receive in-principle support, subject to buy-in from state and territory gaming ministers.
One of the recommendations included the suggestion of a national advertising campaign that would aim to teach children about the harms and risks of online gambling. This specific suggestion does not require the support of the states and territories, and Rishworth indicated the government’s support of the proposal.
“That’s something we’re looking at very carefully on how we best get the message out, the community message out about the dangers of online gambling,” she told Sky News.
The issue of phasing out online gambling advertising has been hotly debated for a number of months. Last month, it was reported that the Albanese Government would not support a total ban as recommended by the enquiry but would instead propose caps of two gambling ads per hour until 10 p.m. and a ban on ads before and after live sports events from 2026. The changes would also include a banning of ads on digital platforms.
The proposal was widely criticised by several MPs and former politicians from all branches of the political spectrum and by a number of industry bodies.
Surprisingly the proposed caps were also condemned by Tabcorp, which used its submission to the review to call for a reduction in the record level of gambling advertising, saying that it should be limited to places where people go to gamble, “including pubs, clubs, or racetracks or on exclusive platforms dedicated to gambling events such as Sky Racing TV and radio”.
“Foreign bookies have been targeting customers of pubs, clubs, and the local Australian state-based licensee with aggressive advertising and inducements, especially when retail venues were forced to close during the pandemic,” Tabcorp said in its submission.
Broadcasters, however, have warned that a stringent cap on gambling advertising could significantly impact their finances. The broadcasters have argued that a reduction in gambling ad revenue might force them to cut back on their $1.6 billion annual investment in news, sports, and local drama. It was previously estimated that a complete ban could result in a $240 million shortfall across television and radio.
B&T understands that media companies will be given several years to scale back their reliance on advertising revenue from gambling firms in a federal move to soften the impact of the changes – whatever they end up being.