Greens Want to Plug Hole of Gambling Ad Ban with Global Tech Tax

Speaking to the Guardian Australia, Sarah Hanson-Young, a communications spokesperson for the Greens, said on Wednesday that free-to-air television does not need gambling to thrive.

Rather, this was an idea spread by ill-meaning politicians Hanson-Young said. She further pointed out that the industry is profiting from what has been described as the “misery and addiction of gambling,” which is not the answer to a sustainable business model.

Offsetting Financial Harm with a New Tax

Rather, some alternatives can help prop up free-to-air TV, such as a newly-floated “tech tax” on global companies such as Meta, TikTok and Alphabet. The argument goes, says Hanson-Young, that these companies should be paying for the journalism they use to monetize.

This suggestion sounds appealing but it’s a double-edged sword. Australia and Canada both forced Meta to pay media news outlets whose content the company was showing on its social media platform, Facebook. However, after a more aggressive stance from Canada, Meta decided that it would no longer display news and has stopped – dodging the tax altogether.

Australia’s attempt to strong-arm global tech giants into complying with a rather arbitrary tax could have a blowback effect that is hard to predict. For one, tech companies may discontinue the services that the tax would arguably levy, which means that free-to-air TV will be put in a tight spot if this is indeed the only relief measure the sector would rely on.

Yet, the idea for a new tax, at least from the point of view of politicians, seems to hold water. The government of Anthony Albanese has similarly suggested that it may seek to stop companies from “riding free” on the back of traditional media.

As the debate surrounding tax rages on, it’s yet unclear what would change in the way gambling ads are regulated. In the meantime, there has been a serious call from popular personalities and politicians in Australia calling for a blanket ban on gambling advertising.

Free-to-air TV is not leaving matters as are, either. Representatives of free-to-air TV and radio have now been asking the government to abolish the $50m commercial broadcasting tax on transmitter licenses, giving them more leeway and making it possible to cushion the impact of the potential reduction or disappearance of gambling partnerships.

Free-to-air TV Seeks to Reduce Tax Burden

According to Free TV Australia CEO Bridget Fair, a ban on gambling will have a serious impact on the industry, and as such, it’s important to seek an alternative such as reducing other tax burdens that the sector currently faces.

Tim Costello from the Alliance for Gambling Reform has called media companies to be completely out of touch with the realities of gambling ads and the harm they cause. Australians lose $25 billion a year, he noted.

The outcome of the debates remains unclear as of now, but it may be not ideal to rely on propping up free-to-air TV with some yet-to-be-passed tax that may not garner enough legislative support or even then – fall short of its original intent.