A controversial proposal to significantly reduce the volume of sports betting advertisements in Australia has reportedly been put on hold until after the federal election, raising concerns that regulatory changes may never materialise.
The Albanese government’s proposed crackdown on gambling ads, aimed at restricting wagering promotions on television, radio, and social media, has encountered stiff opposition from major media companies, betting firms, and the powerful sporting leagues, the NRL and AFL.
The proposed changes, first outlined by Communications Minister Michelle Rowland in August 2023, included a cap of two gambling ads per hour on radio and television, a ban on ads during live sports broadcasts, and a social media blackout. These reforms were crafted in response to a high-profile parliamentary inquiry led by the late Labor MP Peta Murphy, who in June 2023 recommended the phased elimination of gambling ads across all platforms.
Despite initial indications that the government was moving ahead with reform, speculation grew that Labor was delaying action to avoid contentious political battles ahead of the election, which must be held by May.
The Sydney Morning Herald has reported that key stakeholders, including Labor MPs, were recently informed that no legislation would be introduced before the election. Informally, at least two executives from the sports and media industries were advised not to anticipate any public statements from Labor regarding its legislative plans, though the possibility remains slim.
A spokesperson for Communications Minister Michelle Rowland admitted the process was taking longer than expected but emphasised that the government had already implemented “significant online gambling harm reduction” beyond the proposed ad ban.
“We recognise that this is taking longer than hoped, but it’s critical that we get this right to ensure that future reforms are effective and comprehensive,” he said.
The shelving of the gambling ad restrictions follows the reveal of a series of high-level meetings between Albanese and influential media and sports executives last week.
On August 30, 2023, the Prime Minister spent over 90 minutes engaging with key figures such as Network 10’s Beverley McGarvey, Seven Network CEO Jeff Howard, AFL CEO Andrew Dillon, NRL Chairman Peter V’landys, and Cricket Australia’s Nick Hockley. The discussions reportedly focused on the financial impact of advertising restrictions on media revenues and sporting organisations reliant on lucrative gambling sponsorships.
Both the AFL and NRL, which receive substantial revenue from partnerships with bookmakers like Sportsbet, Bet365, and PointsBet, have been among the most vocal opponents of the proposed restrictions.
Free-to-air television networks, which depend on advertising dollars from the gambling industry, have also expressed concerns that limiting gambling ads could further strain their already tight financial positions.
The opposition has seized on the government’s delay, with Liberal leader Peter Dutton accusing Albanese in an interview with the Sydney Morning Herald of lacking clarity and resolve on the issue. “I don’t know what he really believes,” Dutton said.
“This PM is out of his depth and he’s playing both sides of the street and trying to park this issue before the election. If there is a Labor-Greens minority government after the election, it will be [Greens leader] Adam Bandt calling the shots because he has a stronger personality than Anthony Albanese”.
While the Prime Minister might be halting plans for now, the NSW Labor government is pushing forward, announcing a sweeping ban on gambling advertising across the state’s public transport network. This includes the removal of internal and external promotions on trains, buses, light rail, and at stations and ferry wharves.
Transport for NSW oversees one of the largest advertising portfolios in Australia, with 798 advertising boards at Sydney train stations, 49 road-facing digital billboards, ads on 3711 city buses, 76 trams, and across the Tangara train fleet. These assets generate over $33 million in revenue annually.
Despite this, the Minns government has decided to phase out gambling ads over the next 12 months, citing growing concerns about the impact of such promotions on the community, especially children.
Ongoing Scrutiny of the Gambling Industry
While the debate rages on, in the background, the gambling industry is facing immense scrutiny. A class action lawsuit has been filed against Sportsbet by gamblers seeking to recover losses from “in-play” betting, alleging that the company misled customers by promoting a service that flouted federal laws on live betting. The case could cover thousands of Australians who used Sportsbet’s “fast code” service, which allowed in-game bets to be placed through phone calls, circumventing legal restrictions on mobile apps.
One such Australian is lead plaintiff Jeremy Bergman, who reportedly lost $2307 using the service between August 2019 and December 2021.
Generally speaking, punters cannot bet on events after they have commenced. However, bets can be placed over the phone.
“We believe that Sportsbet’s use of the fast code service is not just an attempt to circumvent important laws aiming to prevent gambling harm, it is also illegal because key information about the bet is communicated by punters otherwise than by a voice call,” Maurice Blackburn principal Elizabeth O’Shea told the AFR.
“Sportsbet represented to the plaintiff and group members that the fast code service was legal, and in doing so, we believe it engaged in misleading or deceptive conduct contrary to the Australian Consumer Law.”
B&T approached Sportsbet, which declined to comment on the matter.
The Australian Financial Crimes regulator, AUSTRAC, is also suing Entain, the parent company of Ladbrokes and Neds, over serious non-compliance with anti-money laundering laws. This case, launched in December, is the latest in a series of regulatory challenges facing the gambling sector.
With the government’s policy on gambling advertising still in limbo, the outcome of the ongoing consultations and lobbying efforts remains uncertain.
