What's happening with gambling ads in Oz?

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What's happening with gambling ads in Oz?

Australians are known as the biggest gamblers in the world, but experts have long compared the harms associated with gambling to a public health crisis. The federal government has introduced legislation into parliament to reform how bookmakers and betting companies can advertise their platforms to protect more Aussies - but that legislation has been met with some criticism. So in this Squiz Shortcut, we’ll take a look at:

• Why gambling is seen as so harmful

• What the government is proposing

• And how it’s gone down

🙋🏻‍♀️ This newsletter was written by Anna Pykett and Sophie Felice

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Squiz the Shortcut

So why is gambling reform a big deal in Oz
We have some of the highest gambling rates in the world in Australia, along with some of the highest per capita gambling losses. Aussies lose roughly $32.2 billion dollars each year, which, for reference, is nearly double the average annual losses in the US, and triple those in New Zealand. A report last year commissioned by the Alliance for Gambling Reform actually found that Australians lose more to gambling each year than the government spends on Aged Care.

That’s a lot… Is the cost-of-living crisis affecting those numbers?
Yep, but in ways you might not think… It found that despite cozzie livs, the amount of money being lost to gambling has significantly increased - and lower-income households are particularly vulnerable.

How does that work?
As essential goods and services (and everything in between) become more expensive, there’s even less room in already tight budgets for unexpected expenses or emergencies… Monash University associate professor Charles Livingstone says that gambling losses often increase during times of financial hardship because he says “people gamble when they are desperate”.

So besides financial, what are the other problems?
The World Health Organisation says gambling can lead to serious mental health conditions like anxiety, depression and increased suicide risk. It’s also linked to relationship breakdowns, family violence, neglect of children and increased stigma.

Increased stigma?
Yep… The Victorian Responsible Gambling Foundation found that gambling addicts believe their condition is more publicly stigmatised than alcoholism, obesity, schizophrenia, depression, cancer, and bankruptcy, but not more so than drug addiction. That’s seen as worrying because researchers say stigma around gambling can lead to people hiding their addiction, which experts say can be a barrier to them seeking help.

Let’s wind it back, how are people even gambling so much?
Experts say sports betting is the fastest growing form of gambling in the country - 1 in 10 Aussie men have had a punt on a game or a race. It's this idea of gambling and sport being almost inextricably linked that has many worried. With the explosion of gambling apps on smartphones, people can place bets anytime and anywhere. It’s become easier than ever to gamble, and that means it’s also easier than ever to develop a gambling problem.

What’s been the political response?
We’ll get to the most recent reforms, but first let’s rewind a few years… In 2022, researchers, advocates and politicians all agreed something needed to be done. The late Labor MP Peta Murphy - who was seen as a driving force for gambling reform in this country - chaired a multi-party House Committee looking into online wagering.

What came out of that?
Peta Murphy’s report, You Win Some, You Lose More, was published in 2023 and there was a lot of media coverage about it at the time. It basically found that modern betting companies were aggressively targeting young men and using data to lock in vulnerable users. It compared gambling-associated harms to tobacco-related health issues - equating it more to a public health crisis than something that just happens.

What were the recommendations?
It made 31 recommendations… One that caught a lot of headlines was for gambling advertising to be completely phased out over 3 years. It also included things like a ban on predatory practices to lure people with gambling problems, a clamp-down on illegal overseas betting outlets, and the creation of a single national gambling regulator.

Ok so who are the big players in making these changes happen?
Free-to-air TV networks and the major sporting codes are very tied to this. That’s because they argue that if you accept the argument that online gambling is a public health issue, and then enforce a tobacco-style ban on advertising, it will decimate their broadcasting revenues, and as a consequence, threaten the viability of those sporting codes.

What are the numbers around that?
The networks say they would lose an estimated $240 million to $300 million in annual gambling advertising revenue. That’s about 6% of the combined revenue of the networks involved - so Nine, Seven, Fox Sports… As a consequence of that revenue loss, they claimed it would be difficult to pay for the expensive broadcasting rights that the major sports are demanding. They also argued TV as a medium is in decline and this only makes it harder.

So how do the major sports codes tie into this?
Australia's biggest footy codes, the NRL and AFL, made submissions to that big report too… They receive a proportion of each bet placed, and they aren't the only sporting leagues connected to the industry - Cricket Australia, Rugby Australia, and the NBL also have gaming partnerships.

Do the sports codes and networks influence gambling laws?
In a sense, yes… The Federal government gets lobbied by sporting codes, broadcasters and gambling companies when it comes to changing, or not changing, the law. So essentially, the Murphy report called for much tougher action than what the Albanese government is trying to pass through parliament now.

Let’s come back to the recent changes proposed…
It’s been a few weeks now since the Albanese Government announced its long-awaited gambling advertising reform bill to Parliament. Essentially, this legislation is aimed at tightening the rules around when and how gambling ads can be served to Aussies…

So what’s in it?
In terms of what’s in it - the top line is it will restrict the volume, timing and placement of gambling ads across Australian media. The new laws would allow a maximum of 3 gambling ads per hour on daytime and evening TV. It would ban them during live sports broadcasts between 6am and 8.30pm, and restrict them on commercial radio during school pick-up and drop-off hours, which is a big shift from the current rules.

What about for people under 18yo?
Online ads would also be banned for under-18s - with an opt-out for adults. The government also wants to stop influencers, regardless of the size of their following, and sports personalities from promoting gambling online. Gambling advertising would also be banned on player jerseys and in stadiums.

How have the proposed changes gone down?
The PM Anthony Albanese says the reforms are the toughest any Australian government has ever introduced to Parliament, and says they’re “a major step forward” - but not everyone agrees…

What are critics saying?
The government’s formal response was released in May on Federal Budget Day…This was more than 1,000 days since the Murphy report was published, so it led to questions around the timing, which some people claimed was deliberately planned for then so it would get lost in all the other news headlines.

Was there any backlash?
Yep… Many people claimed the legislation didn’t go far enough - and because the government needs support from either the Coalition or the Greens to pass its bill, it’s now been sent to an 8-week Senate inquiry.

Why is that?
It’s because politicians want more time to scrutinise it and make tweaks. In terms of some of the reaction, Independent federal MP Andrew Wilkie accused the government of putting the commercial interests of the gambling, sporting and media companies ahead of the public interest.

What are people saying about it?
Andrew Wallace, a Liberal MP who has long pushed for tougher gambling law reform, said Labor's bill was "totally inadequate" and another Liberal MP Simon Kennedy was actually booted from question time in parliament a few weeks ago after challenging Albanese about Australians taking their own lives because of gambling addiction…

Anything else?
Yep… Allegra Spender, who is now a Community Strong MP has suggested the PM is ‘out of touch’ with community sentiment on this issue - she says Albanese “seems to not see this as a significant issue as the country does” and the legislation is “missing opportunities to do something significantly better”.

How about the Greens?
Greens senator Sarah Hanson-Young criticised the prime minister for not enforcing a complete advertising ban, saying the prime minister "hasn't even had the guts to take on the gambling industry and put in place the national regulator".

And what are gambling reform advocates saying?
Mark Kempster from the Alliance for Gambling Reform says his 10-year addiction cost him over $100,000 and relationships - and he was disappointed by the government's plan. He said he was in recovery now, but to keep himself on the straight and narrow he says he has to avoid watching sport, reading newspapers and going to the pub to avoid gambling all together - saying he has to miss out on doing things he loves to keep himself safe.

And what about the gambling industry?
Responsible Wagering Australia, which represents gambling providers, argues that a total ban would drive Australians to "illegal offshore gambling operators" and has called the proposals “draconian and overreaching”. They’ve backed the Senate Inquiry, saying it gives them an opportunity to address its concerns over the proposed legislation.

So what’s next?
The government is pushing for the laws to be passed as soon as possible in order for them to come into effect in January next year - so we’ll be keeping an eye on how it all pans out. The Senate Committee is due to hand down its report by August 17, so stay tuned.

Onto our Recommendations

Reading: Peta Murphy’s ‘You Win Some You Lose More’ report for some context around the debate.

Reading: This piece in The Conversation called ‘The biggest losers: how Australians became the world’s most enthusiastic gamblers’. 

Watching: It’s also worth watching Shaun Micallef’s Going for Broke - that’s the ABC documentary series where he looks at the issue of gambling in Australia

Readers seeking support for gambling concerns can contact the National Gambling Helpline on 1800 858 858 for free, professional and confidential support 24 hours a day, 7 days a week. More information is available at www.gamblinghelponline.org.au

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