Gambling ads on TV reported to be gone within two years

By AdNews | 4 September 2024
 
Credit: Albert Dehon via Unsplash

The federal government is reported to be looking to ban online gambling advertisements imminently, while phasing out the television counterparts within two years, according to Sky News Australia.

The bans are concerned with "break[ing] that nexus that has emerged between wagering and sport; protecting vulnerable Australians, particularly children; and dealing with the saturation and targeting of ads - particularly towards young men aged around 18 to 35," according to federal communications minister Michelle Rowland.

"We are doing this in a way that understands that there is a high degree of community concern. People want to see cultural change; advertising is one component of that. People are sick of seeing the number of sports wagering ads."

Analysts estimate gambling ads make up around 6%, or $180 million, of TV ad revenues.

Advertising on gambling in Australia has grown by around 13% compound a year over the last 15 years, going to $300 million in 2022 from $53 million in 2007, according to analysis by investment bank Morgan Stanley.

An estimated 50%-60% of that went to free-to-air television, 20% to digital, 10% to radio, 5% to outdoor and the rest to print and cinema.

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

TV networks, worried about lost revenue, have reportedly asked that spectrum fees be eliminated if a gambling advertising ban is implemented.

Research from the Australia Institute shows a levy on gambling company revenues of just 1.4% could replace the lost advertising income if the federal government enforces a blanket ban, which Sky News Australia reports is not being considered.

Free TV CEO Bridget Fair told AdNews the revenue from gambling advertising currently funds the production of trusted news, live and free sport and local entertainment and drama programming.

"Free TV would expect the Government to consider measures to mitigate the impact of any advertising restrictions on commercial television broadcasters by removing unreasonable and outdated regulatory burdens on the industry including the Commercial Broadcast Tax, which is a significant cost that is not imposed on free to air broadcasters in any comparable international jurisdiction," she said.

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