The Australian government will reject calls for a blanket ban on sports betting advertising and will instead implement a "frequency cap" to limit the number of ads allowed to run per hour or during live events, local media reported.
The Sydney Morning Herald reported on Sunday that although the scope of the upcoming reforms to online gambling will not be revealed until it is submitted to cabinet for consideration in a few weeks, Australian Communications Minister Michelle Rowland is pushing for a middle-of-the-road solution that still requires Licensed sports betting operators are allowed to carry out television advertising but must adhere to strict conditions. The conditions include limiting gambling advertising to 10pm, a maximum of two broadcasts per channel per hour, and a ban on all such advertising in the hour before and after live TV sporting events.
However, reports say gambling advertisements on social media will be banned completely.
The reforms follow a 2023 inquiry into online gambling and its impact on people who experience gambling harm. The inquiry recommended a phased-in ban on all forms of online gambling advertising over three years. The inquiry also recommended the creation of a national gambling regulator to oversee licensing and regulation across the country, and an annual levy on online operators to fund the country’s harm prevention measures.
"The Sydney Morning Herald" stated that the "frequency cap" model was a solution proposed by market leader Sportsbet and lobbying group Responsible Wagering Australia in discussions with the government to avoid a complete ban on advertising. Major sports bodies are also said to be calling for a cap rather than abolition, as the industry relies on these substantial revenues.
Instead, betting giant Tabcorp has called for tighter advertising restrictions but aims to regain market share lost in recent years due to the huge advertising budgets of competing bookmakers such as Sportsbet and Ladbrokes.
While anti-gambling groups in Australia support calls for a total ban on gambling advertising, lawyers specialising in the gambling industry interviewed by Reuters following the publication of last year's survey said any blanket ban would itself be problematic.
“I don’t think a ‘ban’ is appropriate,” Julian Hoskins, founder and head of Senet, said in a 2023 interview with this publication.
“I do think gambling advertising needs to be cut, but it should be done in a carefully measured way to reduce gambling-related harm and prevent children from being exposed to gambling advertising.”
"Advertising on TV at 8pm shouldn't be compared to advertising at midnight. And advertising at the Melbourne Cricket Ground is different to advertising at the racecourse, where 99 per cent of the audience are adults."
“A blanket ban approach certainly doesn’t work in other jurisdictions and regardless of the restrictions on gambling advertising for local operators, you’re still going to see offshore operators and operators who shouldn’t be advertising to this market.”
Jamie Nettleton, a partner at law firm Addisons, added that the whole point of issuing gaming licenses is to provide access to the local market.
He said at the time that entering a market is not just about having customers, but being able to market to those customers so that they keep coming back. That’s part of the benefit.
Australia’s upcoming frequency cap proposal comes as neighbouring New Zealand announced last week that it would issue online casino licenses for the first time in a landmark move to support tax collection and provide consumer protection to its citizens.
The government explained that licensed operators will be allowed to advertise under strict restrictions, but will not be allowed to sponsor sports teams or venues.
