The news: Gambling reform advocates have partnered with activist trading platform SIX in a bid to build investor support to force Seven West Media and Nine Entertainment to shut the door to gambling advertising.
The context: The Alliance for Gambling Reform announced the partnership in a statement on Wednesday. The two organisations said they aimed to change Australia’s media companies as shareholders, including by proposing resolutions at annual general meetings.
Ethical investing firms Ethinvest and Future Group have backed the campaign, the statement said.
The announcement follows a softened government proposal to stakeholders earlier this month that would introduce caps on gambling advertising rather than the blanket ban recommended by a multi-partisan inquiry last year.
The proposal was made to media, gambling and sporting executives in private briefings protected by strict non-disclosure agreements about two weeks ago, according to people familiar with the talks.
The government’s gambling reform agenda for broadcast television includes plans to ban ad placements one hour before and after live sporting events, the people said.
The changes would also introduce caps on gambling ads before 10pm, at a limit of two per hour. Gambling ads would be prohibited on social media under the plans.
Members of the Alliance for Gambling Reform, which have long been vocal proponents of an all out ban on gambling advertising, declined invitations to attend similar briefings because they refused to sign NDAs.
About $300 million is spent on gambling advertising in Australia each year with an estimated $179 million of that going to commercial TV networks in 2022.
What they said: “I’ve bought the minimum parcel of shares in these companies,” said Reverend Tim Costello, chief advocate for the Alliance for Gambling Reform in a statement Wednesday morning.
“If others do the same or use their existing shares in these companies to support this campaign, we can make this campaign a success. That’s how we get inside these companies and push for change,” he said.
“The media companies are completely out of touch when it comes to gambling ads. Seven out of 10 Australians want gambling advertisements on TV to be banned. Australians lose $25 billion each year to gambling, the highest per capita spend in the world.”
The source:
Alliance for Gambling Reform media release