Australian Operators Prepare for a Total Ad Ban

Major gambling operators in Australia are preparing for a potential ban on gambling advertising. Big companies believe that a total ban will be proposed following an ongoing inquiry into online gambling harm.

While the government is not obliged to follow the proposals outlined in the report, which is compiled by the Standing Committee on Social Policy and Legal Affairs, some restrictions are likely to be introduced. In any case, gambling companies are already preparing for the most unfavorable outcome.

Australia has a serious problem with gambling harm, with the pokies being one of the most harmful verticals according to exports. While poker machines are a separate vertical from iGaming, analysts say that gambling ads and online gambling can exacerbate the issue, creating even more problem gamblers. According to many, young adults are the most vulnerable to harm.

The Australian public has long opposed gambling ads and has demanded their ban. Tabcorp, one of the biggest operators, expressed its support for such a measure, although some accused the company of only doing so to protect its business.

Banning Ads Can Have Adverse Effects on Other Industries

However, banning ads may have certain adverse effects, opponents of the measure argue. According to Responsible Wagering Australia, banning ads may channel players toward the more dangerous black market.

In addition, banning ads will deprive TV companies of an important source of revenue, making it more difficult to provide their services for free, Bridget Fair, CEO of Free TV Australia, argued. Other opponents of an ads ban added that TV channels are already struggling amid the rise of internet media verticals, such as video and streaming platforms and social media.

For reference, gambling is among the top 20 biggest advertising categories in the country. In 2022, gambling companies spent around $310 million on advertising, according to data from Nielsen’s Ad Intel Panel.

Finally, an advertising ban would not prohibit sports sponsorships, which will further complicate the situation as player jersey and stadium sponsorships provide operators with much visibility. As a result, TV networks will be the most negatively impacted by a potential ad ban.

However, proposed tax changes may provide some relief to the networks.

The efforts to limit the negative impacts of gambling in Australia continue. Recently, New South Wales opted to tighten its rules, introducing slot betting limits and other changes that seek to protect the customers.