Major broadcasters are warning that a stringent cap on gambling advertising could significantly impact their finances. They argue 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. This has heightened the stakes as the federal cabinet prepares to make a decision on a blanket gambling advertising ban next week.

With tempers rising over the proposed changes, the government has given media industry leaders until Wednesday to respond to the draft proposal and detail the potential revenue losses. 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 a new cap on the promotion of sports betting.

Communications Minister Michelle Rowland defended the government’s approach during a heated parliamentary session on Tuesday, rejecting claims from independent MP Zoe Daniel about the extent of her meetings with gambling industry representatives. The government’s proposal, which includes a cap of two gambling ads per hour until 10 p.m. and a ban on ads before and after live sports events, is set to begin in 2026.

Finance Minister Katy Gallagher pushed the need to balance gambling regulation with the financial pressures on the media industry. “I’m like any parent out there – I think we see too much gambling advertising,” Gallagher said in an interview with the ABC. “So there has to be a response.” She added that the government is committed to preserving public interest journalism and regional coverage, which could be at risk if advertising revenue drops.

Government Services Minister Bill Shorten and Employment Minister Murray Watt have also expressed concerns about the impact on broadcasters. Shorten described the situation as “diabolical” and questioned whether a complete ban would be effective. Watt highlighted the importance of advertising revenue for free-to-air TV, stressing the need for a balanced approach.

Free TV, the industry body representing commercial broadcasters, warned that an advertising ban could jeopardise their substantial investment in content. Bridget Fair, chief executive of Free TV, noted that broadcasters are already facing financial pressures, including a $46 million annual tax for using broadcasting spectrum.

Despite these concerns, Tim Costello from the Alliance for Gambling Reform argued that countries like Spain and Italy have successfully implemented gambling ad bans without causing financial upheaval. He dismissed industry fears as exaggerated. “The industry is crying wolf – it is as logical as calling for the return of tobacco advertising,” he said.

Several MPs across party lines have supported the call for a total ban on gambling advertising, including Labor’s Mike Freelander and Maria Vamvakinou, Liberal MP Keith Wolahan, and Nationals MP Pat Conaghan. Their support is partly driven by the legacy of late Labor MP Peta Murphy, who led a bipartisan committee recommending a total ban. Murphy’s widower, Rod Glover, has urged Prime Minister Anthony Albanese to honour her recommendations.

Freelander, who is also a doctor in western Sydney, has said that the surge in gambling advertising is compounding the financial hardship in Australian households at an already difficult time. “It’s a way of transferring billions of dollars from poor people to wealthy people,” he said. “I strongly believe the only thing we should be doing is a total ban on the advertising,” said Freelander. “The gambling companies are engaging people at a very young age. It is addictive and very difficult to manage, and if it is on TV all the time, you can’t escape it”.

Former Prime Minister John Howard has also weighed in, urging Albanese to demonstrate leadership similar to Malcolm Fraser’s actions against tobacco ads in 1976. Howard criticised the current government for its perceived inaction and the saturation of gambling ads in sports coverage. “We hear a lot of talk from the prime minister of that leadership, but he’s got an opportunity to show leadership on this issue,” Howard said. “It’s just everywhere. I mean, I follow a lot of sports: I watch rugby league, I watch cricket, I watch the Olympics, I watch it all, and it’s just everywhere. It’s too much”.

“The spread of gambling and the social harm from it is a serious issue for our country,” Howard said. “It’s particularly bad for young people who are so easily tempted”.

Albanese has called the saturation of gambling adverts “untenable” but has still made no commitment to a blanket ban. He also condemned Howard for not speaking out on the matter until after he had left politics and claimed that he had done “absolutely nothing” on the issue when he had the chance in power.

An official announcement regarding the government’s plans for gambling advertising is expected in the coming weeks. The proposed caps and the timeline for implementation will be crucial in determining the future landscape of both media advertising and gambling promotion in Australia.