‘Murphy’s law’ gambling ad ban to be rejected in favour of caps

Gambling advertisements will remain on TV for years to come after the Albanese government shunned a high-profile campaign, championed by one of its own MPs, for a blanket ban.

Instead, Labor proposes a cap of two gambling ads per hour on each channel until 10pm, and banning ads an hour before and after live sport – the latter matching a Coalition pledge.

Former AFL CEO Gillon McLachlan, bottom left, and NRL CEO Andrew Abdo appearing before the online gambling inquiry chaired by the late Labor MP Peta Murphy.Credit: Alex Ellinghausen

But in a major step expected to be welcomed by anti-gambling advocates, Labor wants a blanket ban on betting ads on social media and other digital platforms, a move that is likely to provoke fury from the gambling sector.

Details of Communications Minister Michelle Rowland’s plans, which are yet to go to cabinet and are subject to change, were revealed to this masthead by five sources briefed on the highly anticipated reforms. They provided details of the package on the condition of anonymity because the government has only briefed people who signed legal undertakings to maintain secrecy.

“It’s a position that’ll piss everyone off because the purists won’t get a ban and will still see ads on TV, but the sports and media companies will lose a big chunk of money,” one source said, flagging the possibility of compensation for media and sports bodies.

An announcement on the government’s move to address public concerns about the social harm of online gambling and the volume of sports betting ads is expected within weeks.

The proposal comes more than a year after a parliamentary inquiry, chaired by the late Labor MP Peta Murphy, recommended a ban on all gambling ads across television, radio, newspapers and online within three years.

Labor has been pressured by a number of MPs in its ranks and crossbenchers since Murphy’s death in December to honour her legacy, with some anti-gambling advocates proposing new legislation be called “Murphy’s law”. But a ban has been opposed by most gambling firms as well as sporting codes and media companies whose business models have become heavily reliant on betting ad revenue.

Currently, gambling ads during live sports are banned from five minutes before play until five minutes after, between 5am and 8.30pm. After 8.30pm, the ads can appear before and after play and during breaks in play.

More than 1 million gambling ads aired on free-to-air TV, radio and online in the 12 months to April 2023, at a cost of $238 million, according to the Australian Communications and Media Authority.

Australian Rugby League Commission chair Peter V’landys and AFL chief executive Andrew Dillon have led an intense behind-the-scenes lobbying campaign against a ban, with the codes warning grassroots sports will suffer if tens of millions of dollars in gambling revenue is cut.

At the same time, news businesses including News Corp, Nine Entertainment, which owns this masthead, and Seven West Media have said a ban could threaten jobs and their ability to make and provide content.

While anti-gambling activists are likely to argue Labor’s changes do not go far enough, the severity of the proposed frequency cap and the online advertising ban have angered gambling executives who believe they are too prohibitive and will cut out the majority of ads.

Two gambling sector sources said Rowland had chosen the broadcast policy proposal favoured by online gambling company Sportsbet and the sector’s lobby group, Responsible Wagering Australia. In October, this masthead reported the bookmaking sector was putting forward so-called frequency caps as a middle-ground option to avoid a full ban.

Other large bookmakers such as PointsBet, which has stopped advertising on TV before 9.30pm, and Tabcorp have not joined Sportsbet in opposing a ban. Tabcorp has said it wants greater curbs on ads.

Former AFL footballer Nathan Brown in a Sportsbet ad.

Prime Minister Anthony Albanese has repeatedly said he intends to honour Murphy’s legacy and that he agrees with the argument that the volume of ads should be reduced. However, he has stopped short of committing to a full ban, and in February warned there were still issues the government needed to work through.

“I myself have met with people like Tim Costello about these issues, and we’re working through them to make sure that any action doesn’t have unintended consequences because that’s what good governments do,” he said.

Rowland last year faced calls from anti-gambling advocates and crossbenchers to resign from her portfolio after this masthead revealed Sportsbet made financial contributions to her election campaign.

Industry sources said the furore had changed the way Rowland engaged with betting firms and made her more cautious in her dealings.

Public polling shows gambling ads are unpopular, and the opposition has been critical of the government’s efforts to clamp down on the gambling sector since its election. The Coalition has called for a ban on gambling commercials an hour before and after sports matches.

If the Coalition opposes Labor’s changes, the government would need the support of the Greens and crossbenchers to pass its legislation.

Rowland has so far made modest changes to decrease problem gambling, including a self-exclusion register, a ban on credit card betting and new taglines on commercials warning people about gambling risks.

Australians spend the most in the world, per capita, on legal forms of gambling, losing $25 billion every year. Their participation in online gambling jumped from 12.6 per cent in 2010-11 to 30.7 per cent in 2019, Murphy’s parliamentary committee found.

Asked about the proposed caps on gambling advertising, a spokesperson for Rowland said: “The government continues to engage with stakeholders regarding the recommendations from the online wagering inquiry as we formulate our response.”

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