Australia’s media battles with gambling ad reforms

Australia’s free-to-air television networks and metropolitan radio stations are grappling with the prospect of losing a significant portion of their annual revenue. The Australian Communications and Media Authority (ACMA) has estimated this revenue to be around $238.6 million per annum.

Over a year ago, a parliamentary inquiry into the nation’s gambling advertising laws suggested a complete prohibition on gambling advertising and sponsorship. Anthony Albanese, (pictured above) speaking to ABC Radio, has indicated that the Labour Government would consider these recommendations. However, more than a year has passed without any decisive action.

Albanese expressed his distaste for gambling advertisements during sports broadcasts, a sentiment that resonates with many Australians. Despite this, the issue remains unresolved.

Media networks and the future of sports broadcasting

Recently, representatives from the three major free-to-air networks, Responsible Wagering Australia, Free TV, the AFL and NRL, and betting companies such as Sportsbet, Tabcorp, and Entain, met with Communications Minister Michelle Rowland’s office. They have been given until the end of the week to express their concerns about the proposed reforms.

Rowland is said to be considering a milder version of the recommendations. This would include a ban on gambling advertising an hour before and after live sports, limiting free-to-air advertising to two hours per hour until 10pm, and a total ban on all social media and digital advertising.

The free-to-air networks are expected to resist these changes, particularly the $46 million annual spectrum fees they currently pay. They argue that this could offset the anticipated decline in advertising revenue.

Member of the Australian Parliament, Kate Chaney, highlighted a report in the Australian Financial Review that said television stations are seeking to avoid paying spectrum fees.

According to today’s AFR,
TV stations want to avoid paying their spectrum fees because gambling companies are seeing community backlash to their excessive advertising and have cut down. Entitled much? #auspol #gamblingreform https://t.co/HSsMzZDmFh

— Kate Chaney (@ChaneyforCurtin) August 4, 2024

This move comes as gambling companies face community backlash due to their excessive advertising. As a result, these companies are being compelled to reduce their advertising activities

These proposed restrictions also pose a threat to the high costs of sports broadcasting rights. These rights are often purchased with the expectation that the costs can be recouped through lucrative gambling advertising revenue.

A spokesperson from Rowland’s office stated that the government continues to engage with stakeholders as they formulate their response to the recommendations from the online wagering inquiry. The outcome of these discussions will undoubtedly have far-reaching implications for the future of advertising in Australian media.

SiGMA East Europe Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024.