A gambling levy could save free-to-air advertising

A levy on gambling company revenues of just 1.4% could replace the lost advertising income if the federal government enforces a total ban.

Research from the Australia Institute shows that gambling company revenues totalled $17.2 billion in 2022-23. Meanwhile, the industry spent about $239 million advertising on free-to-air TV, metropolitan radio, and online.

Therefore, a levy on gambling revenues of just 1.4% could replace all that lost advertising income and compensate the media for any lost revenue resulting from a gambling ads ban. 

Round it up to 2% and the government could replace some of the money the ABC has lost in budget cuts as well.

Last week an alliance of more than 60 prominent Australians have called on the federal government and the opposition to commit to banning all gambling advertising within three years.

Australia Institute senior fellow Stephen Long said politically, this policy is definitely worth a punt, with good odds that it would be a vote-winner.

“For the media and the Australian public, this represents a rare win-win scenario," Long said.

“Implementing such a policy would reduce the harm to the community that gambling advertising causes, while simultaneously guaranteeing a revenue stream for public interest broadcasting.

“The free-to-air networks could then sell the advertising slots the gambling companies occupied to other businesses while pocketing the levy as well, producing a revenue bonanza.

“Australians experience the highest gambling losses per capita globally, amounting to $25 billion annually. This alarming statistic underscores the urgent need for decisive policy measures, such as this, to address the issue.”