Issue
Evidence shows that gambling advertising is contributing to
increasing individual and social harms. Many Australians are also frustrated by
current levels of gambling advertising, and especially about children’s
exposure to it. In light of such evidence and concerns, in 2023 the Standing
Committee on Social Policy and Legal Affairs (the Murphy inquiry) recommended a
comprehensive ban on advertising for online gambling. Since then, several
private members’ and senators’ bills have been introduced that seek to impose
further restrictions on gambling advertising. This Policy Brief outlines the
drivers behind the Murphy inquiry recommendation, the current state of gambling
advertising regulation, and possible avenues for change.
Key points
- Research
evidence supports a strong causal relationship between gambling advertising,
increased gambling activity, and related individual and social harms.
- The
regulation of online gambling falls largely to the Australian Government.
Currently, restrictions on gambling advertising scheduling and content are
largely imposed through industry codes of practice, enforced by the
Australian Communications and Media Authority (ACMA).
- It
would be possible for the government to introduce tighter restrictions on
gambling advertising without legislative change, depending on how
comprehensive it wished such restrictions to be.
Context
In June 2023, the Standing Committee on Social Policy and
Legal Affairs, chaired by Peta Murphy MP,
reported on its inquiry into online gambling and its impacts on those
experiencing gambling harm (the Murphy inquiry). The You
win some, you lose more report made 31 recommendations, the key one
being to implement a comprehensive ban on all forms of advertising for online
gambling, to be introduced in 4 phases, over 3 years, commencing immediately
(recommendation 26). To date, the government has neither formally responded to
the inquiry nor committed to adopting the advertising ban recommendation.
What are the issues
with gambling advertising?
Research into the impacts of gambling advertising
demonstrates strong causal links between gambling advertising and
gambling-related harm. A 2023 systematic
review of literature on the impacts of gambling-related advertising on
gambling-related harm found that studies:
… consistently support the existence
of a causal relationship between exposure to advertising of gambling
products/brands and more positive attitudes to gambling, greater intentions to
gamble and increased gambling activity at both individual and population level.
There is evidence of a ‘dose-response’ effect; greater advertising exposure
increases participation which leads to a greater risk of harm. There was more
evidence for the impact on children and young people and for those already at
risk from current gambling activity with those most vulnerable more likely to
be influenced. (p. 124)
These findings are
consistent with those related to the impacts of alcohol and tobacco
advertising.
The review concluded that ‘gambling advertising restrictions
could reduce overall harm and mitigate the impact of advertising on
gambling-related inequalities’ and recommended that policies limiting exposure
to advertising should form part of public harm prevention strategies (p. 124). A critical and meta-analytic
review of research from the past 2 decades broadly echoed the above
findings and concluded that ‘[i]n the absence of effective government
regulation, gambling advertising is likely to increase and be more influential,
and lead to greater societal harm’ (pp. 12–13).
Volume of gambling
advertising
According to Nielsen
Ad Intel, the gambling and gaming industry spent an estimated $187.75
million on advertising in 2024, down
from $239 million in the previous year. This excludes in-stadium
advertisement or sponsorship. The Australian
Communications and Media Authority (ACMA) reported that in the year to 30
April 2023:
- the
majority of gambling advertising spend was in free-to-air (FTA) TV markets
(68%)
- over
1 million estimated gambling advertisements aired on FTA TV and metro radio
- 50%
of spots from gambling providers on FTA TV and metro radio were advertising
online gambling services
- online
gambling providers’ spending (including social media) amounted to 64% of all
gambling advertising.
The recent drop in spending bucks the earlier trend of a sharp
increase in gambling advertising between 2011 and 2021. Some reports
suggest the reduction is in anticipation of restrictions
being imposed, following the Murphy inquiry recommendation.
How is online gambling
advertising currently regulated?
Regulation of advertising for online gambling services is
primarily an Australian Government responsibility, with state and territory
governments and industry self-regulation also playing roles.
Australian Government –
scheduling of advertisements
The ACMA regulates TV and radio broadcasting services under
the Broadcasting
Services Act 1992 (BSA), which also contains provisions for
regulating parts of the internet industry.
Restrictions related to the scheduling of gambling
promotional content on commercial and subscription radio and broadcast
television were introduced in 2015 and tightened in 2018. These
restrictions are outlined in industry-developed
codes of practice, registered by the ACMA under the BSA. The ACMA monitors
compliance with these codes, which are currently under
review and subject to change.
The
codes restrict the placement of gambling advertisements during live sports
programs, with restrictions tightest between 5:00 am and 8:30 pm. Commercial
television licensees face additional limits on gambling promotions in
children’s programming (5:00 am to 8:30 pm) and programs classified G
or lower between 6:00 am and 8:30 am, and 4:00 pm and 7:00 pm
(p.19). Restrictions also apply to the national broadcasters: the ABC, by legislation
(section 31), must not have any advertisements on its broadcast offerings, while
the SBS (point 4.2.1) follows the provisions in the above codes of
practice.
Rules applying to the scheduling of gambling advertisements
during live
sporting events streamed over the internet are comparable to the
restrictions in the broadcasting industry codes. Specific restrictions are
provided in the Broadcasting
Services (Online Content Service Provider Rules) 2018.
Australian Government –
prohibited advertisements
The Interactive
Gambling Act 2001 (IGA) imposes prohibitions on certain interactive
gambling and wagering services. Part 7A of the IGA provides that advertisements
for prohibited interactive gambling services or unlicenced regulated
interactive gambling services cannot be broadcast, datacast or published
online, in an app or in TV or film.
Industry regulation –
advertising content
In addition to government regulation, advertising content
in Australia is governed through industry self-regulation. Advertising of wagering
products and services provided by licensed operators in Australia must comply
with the Wagering
Advertising Code and a broader Code
of Ethics. These are administered by the Australian
Association of National Advertisers in conjunction with Ad Standards. Under the Wagering
Advertising Code, gambling advertisements must
not:
- target
children or suggest that children are gambling
- exaggerate
how likely a gambler is to be successful
- suggest
that gambling is a way to achieve success
- make
a connection between gambling and alcohol.
Industry self-regulation is a complaints-driven
system. If the Ad Standards Community Panel determines
there has been a breach of a code, the advertiser is required to modify or
remove the ad. If they do not do so, Ad Standards may contact the media owner
or platform to request the ad’s removal. Decisions in response to complaints
are published online.
State and territory
responsibilities
State and territory
governments are responsible
for the regulation of advertising in outdoor settings (p. 6), including
billboards, stadiums and player jerseys.
They may also set restrictions on gambling advertising for
wagering services that are provided within their jurisdiction. While there is
some variation in restrictions between states and territories, the National
Consumer Protection Framework for Online Wagering (an agreement between the
Commonwealth and state and territory governments, last updated May 2022),
provides consistency in ‘minimum protections for consumers of interactive
wagering services licensed in Australia’ (p. 1). Since
2023, this has included a requirement that gambling messages contain an
approved tagline, for example ‘Chances are you’re about to lose’ (p. 7).
Murphy inquiry
recommendation
Based on numerous submissions, the Committee
argued that a comprehensive ban on all advertising for online gambling
across all media was necessary because ‘recent history shows that … the
adoption of restrictions in one place or time results in an increase in
advertising elsewhere’ (p. 114).
This observation is borne out by research
by the ACMA that examined trends in gambling advertising during live sport
on TV, radio and streamed online, following the introduction of the 2018
restrictions. The study found that gambling advertising decreased during
restricted hours for most sport events, but shifted to later times, resulting
in an overall increase in TV and radio gambling advertising.
Possible avenues for
change
The government could further restrict gambling advertising
on broadcast media or online in relation to the live-streaming of sport without
new legislation. Section
125A of the BSA provides that the Minister for Communications may direct
the ACMA to develop a ‘gambling promotion program standard’, via legislative
instrument, which could further restrict gambling advertising on broadcast
media in conjunction with live sport. Similarly, under Schedule
8, Part 2 of the BSA, the ACMA could tighten gambling advertisement
restrictions on online content service providers in conjunction with live sport
via new online content service provider rules, made by legislative instrument.
It is also possible for the ACMA, with government backing,
to demand tighter regulation of gambling advertisement on broadcast media
through the process of reviewing and registering broadcast industry codes of
practice under the BSA. Changes to gambling advertising rules in 2018 were
achieved primarily via amendments
to these codes. This was with the regulatory
backup of section 125A of the BSA, which was inserted into the BSA in 2018
for this purpose (p. 2).
Any additional tightening of restrictions is likely to
require legislative change. Private
members’ and senators’ bills introduced during the 47th Parliament provide
a possible blueprint for enacting gambling advertisement bans through amendment
to the BSA and the IGA.
A prohibition on all in-stadium advertising, including logos
on uniforms, and on gambling sponsorship would likely require cooperation with
state and territory legislators.
Contested issues
In August 2024, chief executive of Responsible Wagering
Australia – the peak body for Australia’s online gambling industry – Kai
Cantwell was reported as arguing that ‘a blanket ban would drive Australian
punters into the arms of illegal offshore providers’. Cantwell cited Betting
and Gaming Council (a global lobby group for gambling firms) figures which, he
claims, show high rates of illegal offshore market gambling in countries where
gambling is ‘overregulated’.
Gambling researcher Professor Samantha Thomas has
questioned Cantwell’s claim, arguing that financial counsellors assisting
people recovering from gambling related harm observe that most harm comes from
gambling providers licenced in Australia. Thomas also noted that the Murphy
inquiry looked closely at illegal offshore gambling, and cited evidence from
the Spanish gambling regulator which found gamblers did not migrate to illegal
operators following advertising restrictions.
Broadcasters
have argued that further gambling advertising restrictions would, by
reducing their revenue, detract from their ability to provide FTA content (pp.
118–120). Similarly, some of Australia’s biggest sporting codes have
argued that any reduction in the value of sports media rights due to
reduced advertising revenue would compromise their ability to sponsor teams and
events, including grassroots sports activities.
These claims have been questioned by public health and
business experts. In a supplementary
submission to the Murphy inquiry, Emeritus Professor Mike Daube noted that
similar arguments were made by the tobacco industry, and sporting bodies that
received tobacco sponsorship, in response to Western Australian Government
attempts to ban tobacco advertising in 1983. Following
the ban, ‘major sporting events secured new sponsorships from both
government and the commercial sector’ (p. 117). Similarly,
health promotion foundations in Victoria, South Australia and elsewhere
‘demonstrated that alternative sponsors were not so difficult to attract’.
Marketing expert Dr Andrew Hughes has
argued that based on current gambling industry advertising expenditure
figures, this revenue represents a relatively small amount of FTA TV companies’
total annual revenue. The Australia Institute has
suggested FTA media companies could be compensated for lost revenue through
a 2% levy on gambling revenues.
Looking forward
There is a growing body of evidence linking gambling-related
advertising with increased gambling activity and related harms. In this context
and following the Murphy inquiry’s recommendation of a comprehensive ban on
advertising for online gambling, pressure to further restrict gambling
advertising is mounting. Several regulatory options to achieve this are
available to the government, the choice of which would depend largely on how comprehensive
it may wish any new restrictions to be.