Proposed 2% Gambling Levy on Revenue Could Stop Ads in Australia

Earlier this month, we reported the Australian government was pushing its plans to introduce a cap on gambling advertising during general television programming despite heavy pressure for a complete ban. 

The heated ad debate in the land Down Under has not come to a halt just yet, in light of a new 2% gambling levy on revenue proposal that would help media companies stop their betting ad campaigns.

“A Rare Win-Win Scenario”

At the end of June, we spoke about the country’s ongoing problem gambling issue amid a study conducted by Roy Morgan and published by the Alliance for Gambling Reform, which found that problem gamblers made up one-fifth of the user base of operators and were also responsible for roughly a third of all the money wagered on sports.

Since gambling ads have been shown to cause harm to the community with special emphasis on vulnerable categories including children, the new levy could prove to be “a rare win-win scenario,” according to Australia Institute’s senior fellow Stephen Long.

According to the Australia Institute, a Canberra-based think tank conducting “high-impact research for a better Australia,” the proposed levy would be used as compensation for the losses triggered by an outright ban.

The institute went on to explain that a “small levy on the many billions of dollars that gambling companies extract from Australians” could effectively replace the media’s potential $240 million loss in revenue from a ban, “with enough left over to increase funding for the ABC.”

The progressive thinktank’s opinion is shared and supported by the Greens who have also expressed their view for a total ban on gambling ads instead of Labor’s proposed caps during general TV programming.

The institute believes a 1.4% levy would suffice to replace the $240 million spent on free-to-air TV, online advertising, and metropolitan radio ads.

The conclusion was issued after assessing Australian gambling company revenues that reached $17.2 billion in 2022-23.

Long explained a 2% levy, which he called “a tiny fraction of the money lost on wagering,” would compensate the media for “any lost revenue” that would result from a total ban.

He went further to describe the implementation of the levy as “a rare win-win scenario” since it would not only cut the harm caused by ads but also guarantee “a revenue stream for public interest broadcasting.”

The institute’s executive director, Richard Denniss, explained that while they did not assume “there will be any reduction in gambling” resulting from the ban, “it would obviously be good news” if a drop in the number of gamblers would be recorded. 

“Corporations Should Pay for the Lives They Are Wrecking”

Denniss also mentioned the fact that Australian gamblers are subject to the highest losses per capita globally, at $25 billion a year, explaining the “alarming statistic” shows just how critical “decisive policy measures” are at the moment. 

Using the voice of communication spokesperson Sarah Hanson-Young, the Greens expressed their view that “the gambling corporations should pay for the lives they are wrecking.”

The spokesperson added research shows it is possible to “ban gambling ads and fund public interest journalism at the same time.”

Labor wants to see a ban on online gambling ads, as well as during live sports broadcasts and in children’s programming, an hour on either side, but limited to two an hour in general TV programming as a rule of thumb.

The policy is awaiting cabinet or caucus approval.