Australia could ban gambling ads in three years, in a potential $300m revenue loss
Gambling advertisements could be banned within three years if the government adopts the sweeping recommendations of a parliamentary inquiry, in what would amount to hundreds of millions of dollars of lost revenue for media operators.
The damning report titled ‘You win some, you lose more’, handed down today, followed a probe by the House of Representatives standing committee on social policy and legal affairs, makes 31 recommendations.
One of the most significant calls for a ban on all advertising by online gambling operators, applying to television, radio, online and newspapers, phased in over a three-year period.
That could amount to a $150 million-plus loss for broadcasters alone, based on data collected by the Nielsen Ad Intel Panel. Of the total $300 million-plus spent by gambling operators last year, about half was allocated to TV advertising.
Peta Murphy, the federal member for Dunkley and the chair of the committee, said the phase-out timeline would give media operators and sports broadcasters enough time to find alternative sponsors and advertisers.
While the cost of an ad ban would be hefty, Murphy said it would “prevent another generation from experiencing escalating gambling harm”.
“Gambling advertising and simulated gambling through video games, is grooming children and young people to gamble and encourages riskier behaviour,” she said.
“The torrent of advertising is inescapable. It is manipulating an impressionable and vulnerable audience to gamble online.”
Communications Minister Michelle Rowland said the government will now review the report and consider its recommendations, “in full and in consultation with key stakeholders, before outlining proposed reforms”.
“This report provides a comprehensive review of online gambling, and outlines options to reduce gambling harms in Australia,” Rowland said.
“I thank the committee for its work, and the many Australians with lived experiences, advocates and industry groups who participated in this process.”
Australians spend the most in the world, per capita, on legal forms of gambling, losing $25 billion every year. Australians also lose the most money to online gambling, per capita, in the world.
Australian punters spend the most money in the world, per capita, on legal gambling and lose an estimated $25 billion each year.
And Aussies lose more to online gambling than any other country.
The participation of Australians in online gambling surged from 12.6% in 2010 to 30.7% in 2019.
The inquiry was established last September and received 161 submissions, 26 exhibits and held 13 public hearings.
You said the quiet part out load there, you shills.
‘$300m in revenue’ is nothing when set against the misery the gambling ‘industry’ profiteers.
You don’t get to mince around talking up ESG and ‘corporate responsibility’ and then turn around and clutch your pearls at the thought of your paymasters losing a few bucks.
What were the effects on media enterprises when cigarette advertising was prohibited?
This just shows the complete lack of understanding MPs have of the structure of business and the media.
They say they will phase in the bans over three years to give media companies “enough time to find alternative sponsors and advertisers”.
Guys, if those alternative sponsors and advertisers exist, don’t you think they would already be using them?
I am yet to see any gambling warnings at any poker machine venues or casinos?
We are bombarded with anti-gambling messages on television, radio and print but not at the venues where gambling is taking place? Research tells us that poker machines are a real issue and the choice of gambling for most problem gamblers as it is not at all regulated – there is no self exclusion, no setting a limit or management like there is with online providers who watch and monitor peoples accounts.
Pokie venues are still full or people and there are no warning signs on machines or around the casinos?
That’s 300 million dirty dollars… may it be a swift and painless awakening for the moral driftwood that happily takes the wages of gambling addicts.
Good riddance
This big sport fan strongly supports the government’s stand.
Gambling is a huge issue. Gambling is destructive.
One could also argue that the advertising is deceptive. The tone of the majority of gambling ads is that you will come out as a winner. Analyse the odds and get an idea of how much you WILL lose over the long run. Just look at their profits. if you don’t believe that.
If it was a laundry detergent that claimed the brightest wash I’m pretty confident that it would be challenged one the basis that it wasn’t truthful.
Sadly, I lost a mate some years ago who suicided due to gambling debts.
So thank you to the government’s action that is aimed to save marriages, domestic violence and suicides. Yes it is a ‘brave’ decision but it is the right decision.
The quiet part? First time here? We cover the media, marketing and advertising industries, so… the loss of revenue is pretty relevant And if $300 million is “a few bucks”, happy for you to shout lunch one day.
Scroll a bit further down and you’ll also see our overview of the huge amounts of money Australians lose to gambling.
Shannon Molloy – editor
“The phase-out timeline would give media operators and sports broadcasters enough time to find alternative sponsors and advertisers”
This comment alone, just shows how dumb and out of touch with reality politicians are when it comes to real business…. Absolute morons and neanderthals.
All politicians should be required to have ten years of real-world experience before being eligible to run a country.
Thank god we have a Government to save us from ourselves.
Jeez maybe they are thinking about the people affected by the toxic industry that bombards our advertising every sporting event. Good riddance.
AGREE
As others have pointed out, 300 million in dirty dollars.
Sure, it’s a big challenge for media that none of us can ignore, and I feel strongly about quality news and local content too.
But if Australians DIDN’T lose $25 BIllion gambling, they might have more money to spend on other advertised goods.
If our governments didn’t pay more than that on cleaning up the social fallout, health impacts, family violence and productivity issues that results from that $25 billion it would also have more money, to advertise and support consumers.
There’s vast evidence that the bombardment of gambling advertising worsens gambling addictions, and possibly triggers them in young people (young consumers, if you want to take the empathy out completely).
Simultaneous efforts to reign in pokies, sports gambling, online gambling and gambling in advertising should be welcomed, because it’s the quickest, cleanest way to transition and free ourselves of this toxic poison in our community and economy.
Out of touch Neanderthals? Maybe don’t build an business model on an income source that should have been reigned in long ago.
The damage caused to viewers is immeasurable.