Federal government enlists extra help as gambling ads reform drags

The federal government has engaged a regulatory advisory business to help it decide whether to implement a total ban on gambling advertising, almost one year after a bipartisan inquiry into online gambling harm recommended the measure.

Rob Nicholls from Nicholls MMC wrote to multiple media companies last month to begin discussions to assess the implications of a ban for the sector. Multiple meetings with broadcasters and news giants, including with Nine Entertainment, the owner of this masthead, were held in the following weeks.

A ban on gambling ads proposed by Opposition Leader Peter Dutton would have the most severe repercussions for the broadcasters of the AFL and NRL including Seven Network, Nine Entertainment and pay-TV operator Foxtel.Credit: Quinn Rooney/Getty Images

Any ban on wagering advertising would have dramatic consequences for the bottom line of media and sports businesses. However, the measure is overwhelmingly supported by the Australian public and the country’s politicians.

Much of the sporting, gambling and media industry had been anticipating a decision from the government in the coming weeks, but the new bout of consultation has now pushed back these expectations.

Former MP Peta Murphy– who died from breast cancer at the end of last year– chaired a cross-party committee into online gambling harm in 2022 and delivered a report titled You win some, you lose more, with 31 recommendations to the government aimed at reducing gambling harm in June.

The government is yet to respond to the report.

The late Labor MP Peta Murphy in parliament.Credit: Alex Ellinghausen

“We recommended a staged three-year implementation of an advertising ban because we recognise this isn’t an easy or quick fix,” Murphy wrote in comments dated November 30. The four-stage plan was recommended to be implemented immediately.

Under the first stage of the plan, the federal government would prohibit all online gambling inducements and inducement advertising, as well as all advertising of online gambling on social media and online platforms, news broadcasts and commercial radio during school drop-off periods.

It would then move to prohibit all gambling ads and commentary on odds during a sporting broadcast and an hour before and after a broadcast. This stage would also outlaw all in-stadium advertising.

The third stage would lead to a ban on all broadcast gambling advertising between 6am and 10pm, while the final stage of the plan would entail outlawing all gambling advertising by June 2026. Racing broadcasts would be exempt from the ban.

Multiple media and sports executives, who spoke to this masthead on the condition of anonymity, said they believed the government has finally realised the level of difficulty in implementing a ban on online media such as YouTube, Spotify and Meta, which are three of the main ways young people consume gambling content.

The executives said it was unlikely a total ads ban would be implemented over such a short timeframe and expect a staggered crackdown to be drawn out over the next decade.

The wagering industry spends about $300 million on advertising every year, according to data from Neilsen’s Ad Intel Panel. Half of this amount is spent with commercial television networks, the biggest benefactor of gambling advertising. The second most used medium is digital advertising on online platforms such as YouTube, TikTok and Instagram.

Online gambling ads are governed by the self-regulatory codes of practice developed by the Australian Association of National Advertisers. Its wagering code means platforms should prohibit content that targets children or suggests they participate in gambling, exaggerate the likelihood of success, or connect gambling and alcohol. Most online platforms also have inbuilt age-gating which can make it easier to prevent ads from circulating to children – but not all, and some are easily outmanoeuvred.

Monitoring the saturation of wagering ads across these platforms is difficult for the communications watchdog, the Australian Communications and Media Authority (ACMA) because each operating model tends to differ, which complicates tracking accountability.

A spokesperson for the Minister for Communications Michelle Roland said the government is committed to protecting vulnerable Australians from gambling harm.

“The minister has met with a number of harm-reduction advocates, public health experts and academics. The department has also met with a broad range of stakeholders, including broadcasters, sporting codes and digital platforms during this time,” the spokesperson said.

“While engagement with industry is important to ensure the regulation of gambling can be effectively implemented, the government’s overarching policy position in this work is harm reduction. The government is taking the time to ensure it gets these crucial reforms right, and will release its response in due course.”

Read more:

• PointsBet says gambling reforms will hit smaller players hardest
• Media, wagering outfits brace for ads ban ahead of gambling report
• Gambling ads under review after alleged breaches of anti-harm tagline rules

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.