The Australian government’s plan to introduce stricter regulations on gambling advertising – particularly on online sites – has hit yet another delay, frustrating advocates and confusing the public. Despite a widespread call for reform, delays and contradictory statements from ministers show that legislative progress continues to be uncertain.
Online gambling generates large revenues each year, with 2023 seeing $75.4 million added to government coffers. This accounted for 31% of overall gambling turnover, showing just how lucrative the industry is. However, there is a need for clearer regulation when it comes to gambling advertising.
Legislative Plans On Hold
In 2023, a parliamentary inquiry, led by Peta Murphy, proposed 31 various recommendations, including a total ban on gambling advertising. The inquiry was backed by members across Labor, Coalition, and the Greens, and was aimed to address the increasing impacts of gambling on society. However, nearly a year and a half later, the government has not acted decisively.
As new casino options for Australians emerge, offering a variety of games, welcome bonuses and fast payouts, operators are seeking clarity.
The restrictions were expected to be introduced during the final parliamentary sitting of 2024, but Assistant Minister to the Treasury Andrew Leigh admitted that the government lacks sufficient Senate support to pass the proposed legislation. He stated that they “aren’t able to find the numbers in the Senate at the moment for the blackout period before and after sporting events.” He was referring to gambling ads related to sports organisations. He claimed that efforts were ongoing but hinted that the current political climate made immediate progress impossible.
These statements contradicted Sports Minister Anika Wells, who attributed the delays to a need for further refinement. She mentioned the financial dependency of sports organisations on gambling revenue as a key factor that is complicating the reform’s implementation.
Disputes Between Ministers
It is clear that ministers are not agreeing on the current state of the proposed reform. The delay has been worsened by conflicting statements in the government.
Minister Leigh is a proponent of a comprehensive ban on advertising and blamed a lack of Senate support as the main challenge. Minster Wells attributes it to the complexity of balancing the integrity of sports with the economic realities faced by sports organisations in the country.
There are also broader divisions in the Labor Party. Some members are pushing for a total ban on gambling advertising, while others, including Prime Minister Anthony Albanese, advocate for a moderate approach. Albanese has stated, “The problem is not advertising, the problem is gambling.”
This perspective from the Prime Minister has drawn criticism from advocacy groups and opposition leaders, who accuse the government of giving in to pressure from media companies and sporting codes that rely on advertising revenue.
MP Andrew Wilkie said the government was “scared stiff” of the media, sporting codes, and gambling companies. His sentiment was backed up by Senator David Pocock who said the government was “gutless”.
Implications Of The Delay
The lack of action comes despite strong calls from members of the government to make a decision. Advocacy groups are urging the government to take decisive action.
The Greens are calling for a complete ban on gambling ads, arguing that anything less will be insufficient to protect vulnerable Australians, like the younger generation.
Advocacy groups have also levelled up their campaigns, calling on an urgent need for reform. They have expressed frustration over the government’s inability to deliver on promises despite bipartisan agreement during the parliamentary inquiry.
However, gambling revenue is a valuable economic boost for Australia’s economy, as the betting tax rate is 15% of an operator’s total revenue. Establishments also pay gaming machine tax for profits over $250,000 (at clubs) or $50,000 (at hotels). Gambling ads serve to attract more players to online casinos and sportsbooks, which benefits the country’s economy through tax revenue. This income can then be invested back into the community through public projects.
Conclusion
Australia’s delays in implementing gambling ad reforms show the complexities of balancing economic interests with social responsibility. Opposition leaders and advocacy groups are calling for decisive action, but conflicting opinions within the government seem to be stalling progress.
There are benefits to gambling ads, for both sports organisations that depend on sponsorships and the government, and until a clear legislative path is established, the issue will remain in limbo.
