A Sportsbet spokesman for the company supported “balanced” reform, warning against moves which would restrict the amount of money going into media companies and sporting bodies.
“Thursday’s announcement, which focuses solely on sport broadcasts, risks leading to significant impacts on sport and media funding,” the spokesman said.
“We encourage all political parties to work constructively in consultation with affected sectors on proportionate solutions that achieve this balance while reducing harm.”
The surprise announcement comes at a tricky time for the online gambling industry, sports bodies and major media organisations. There has been growing support among MPs and the voting public for a crackdown on online bookmakers, particularly curbing the sheer volume of advertising that is plastered across TV, radio and social media in Australia.
Bad bets
Some executives at the companies were given a heads-up by the Coalition’s communication’s spokesman, David Coleman, ahead of the announcement, according to a person familiar with the matter. “There was no notice, just a heads-up,” the source said.
Privately, TV executives say changes would put at risk up to $200 million of revenue from the gambling companies. Figures from Standard Media Index, which measures advertising agency spend, show TV networks made $180 million from the $300 million spent on gambling ads in 2022.
The AFL struck Australia’s biggest sports rights deal last year, worth $4.5 billion with Seven and Foxtel. Justin McManus
The figures are material for companies like Seven, Nine and Foxtel, which have signed long-term broadcast contracts with the AFL and NRL worth billions. Those companies sign annual packages with the likes of Sportsbet, Ladbrokes and ASX-Listed Tabcorp to place marketing around the games.
Under existing laws, gambling ads are banned from five minutes before a live sport commences until 8.30pm. After 8:30pm, gambling ads can also appear during breaks.
One gambling industry veteran said the amount of money flowing into media and the football codes would be “substantially less” if Mr Dutton’s idea were to become reality.
Other executives are more sanguine about the announcement, describing Mr Dutton’s speech as headline-grabbing, rather than a serious policy proposal, coming weeks before the government’s inquiry into online gambling is due to report.
“It’s a simple way to get ahead of Labor on the topic,” one TV executive said, adding blocking TV ads would shift promotion onto YouTube and social media apps.
AFL CEO Gillon McLachlan, bottom left, and NRL CEO Andrew Abdo appear before the government’s online gambling inquiry chaired by Labor MP Peta Murphy. Alex Ellinghausen
The federal government’s parliamentary inquiry into online gambling has become the main venue for the likes of Sportsbet, media and sporting bodies to be consulted on the coming crackdown.
Last month, AFL chief executive Gil McLachlan appeared at the inquiry along with NRL chief executive Andrew Abdo. They suggested the inquiry should look at banning so-called inducement ads, like cash-back and free-cash offers, particularly on social media.
The inquiry has already led to the government committing to new laws that will ban people from using credit cards through online bookmakers.