Partial or full advertising ban?

Australia is in the throes of a national debate over gambling advertising, with an increasing number of figures advocating a complete ban in the country.

The debate mostly originates from the results of a bipartisan committee, which in 2023 recommended a full ban on gambling advertising within three years, to allow “major sports and broadcasters time to find alternative advertisers and sponsors.”

ads are not allowed to be shown within five minutes of a sporting event starting or ending

Since then, government Communications Minister Michelle Rowland produced a compromise. At present, gambling ads are not allowed to be shown within five minutes of a sporting event starting or ending, between 5am and 8:30pm. That would be extended to an hour, with a limit of two adverts per hour before 10pm.

Falling well short of a proposed full ban, the idea has generated considerable controversy in the country, with objections, support, and counterproposals being released on a daily basis. Here, we’ll summarize everything we know about the situation so far.

Who’s in favor of the ban?

Public health advocates: Groups like the Alliance for Gambling Reform, a non-profit organization which aims to minimize gambling harm, have been at the forefront of the drive towards a total ban. In addition to their advocacy work, they’ve also been involved in shareholder activism, attempting to pressure major Australian media companies to stop taking ads from gambling operators.

Progressive think tanks: The Australia Institute is a bipartisan think tank which has also been heavily lobbying for a total ban. Generally seen as more progressive and left leaning, the influential group has sided with the Greens over the matter, calling for additional taxation to replace the lost revenue.

Current MPs: The Green Party, which has 15 of the 227 seats in Australia’s Senate and House of Representatives, have thrown its full support behind a total ban. Senator Sarah Hanson-Young said: “We should be banning gambling advertising, taxing the big tech corporations and funding public interest journalism. Gambling addiction is not the solution for public interest journalism.”

The ministers who are talking are just repeating the language of the gambling lobbyists.”

Further clouding the issue is the number of Labor MPs who are in revolt over the issue. Several have criticized their own party over the matter, including Mike Freelander, who said: “The ministers who are talking are just repeating the language of the gambling lobbyists.”

Other public figures: In addition to current politicians, former heavyweights have also called for a total ban. John Howard and Michael Turnbull, along with “union leaders, sport, business, health, union and faith figures, academics, writers, social justice advocates and social service groups”, signed an open letter calling on the government to uphold the 2023 recommendation for a full ban within three years.

Who’s against the ban?

Gambling operators: Well, you wouldn’t have gotten very long odds for guessing that one. Responsible Wagering Australia, a major industry body, has criticized the ban, with CEO Kai Cantwell arguing that regulatory crackdowns will result in pushing Australians to ”illegal offshore providers, which are rife already,” which unlike regulated operators, are ”advertising very heavily towards children and young people.”

kneejerk moves to implement outright bans will ultimately hurt viewers”

Media organizations: Media organizations who rely heavily on advertising revenue have also expressed concerns about the ban. Free-to-air TV is under particular pressure, with Free TV Australia CEO Bridget Fair saying: “While we appreciate that there are concerns in the community regarding the volume of gambling ads, kneejerk moves to implement outright bans will ultimately hurt viewers and the television services they love.”

The Labor Government: At present, Albanese’s government is only calling for a watered-down version of the 2023 committee’s proposal. Government services minister Bill Shorten came out against a total ban, stating “We got ourselves in this wicked situation where now some of the free-to-air media need gambling ad revenue … in order just to stay afloat.” Albanese also caused significant anger when the gambling lobby was briefed on the government plans before the Labor party caucus.

National Party MPs: The National Party holds 21 of the 227 seats in Australia and is part of the opposition coalition along with the Liberal Party. While the official party line isn’t against a ban, several MPs have spoken out against it, such as Barnaby Joyce and Keith Pitt. The former said: “You can moralize to an extent, but I’d need some convincing. Next it will be fast foods, then sugary drinks. Everyone knows you shouldn’t be living on Coke.”

What does polling show?

Polling has shown some variation, but has consistently displayed high levels of support among Australians for a ban. A poll by the Australia Institute in 2022 found that 71% of Australians wanted all TV gambling ads banned, while a 2023 poll by Pure Profile for the Alliance for Gambling Reform also found 71% of Australians wanted gambling ads banned from sport.

However, public opinion may have actually narrowed since then. A poll commissioned this month by the Australian Financial Review found that when given a choice of options, the most popular was the partial ban proposed by the government. 50% of respondents still backed a blanket ban, with only 29% opposed.

What are the sticking points?

Media revenue: Even most of the critics of the ban haven’t really contested that Australia has a problem with gambling and there need to be additional restrictions on advertising. Instead, most opposition has coagulated around struggling media companies, which are heavily reliant on gambling ad revenue – particularly the free-to-air sector.

To solve this problem, the Australia Institute advocated a 2% levy on gambling operators to cover media costs, while the Green Party have proposed a tax on tech companies. So far, however, the government appears reluctant to adopt either proposal.

The current compromise is likely one reflecting the need for this delicate political balancing act.

The upcoming election: Australians will head to the polls next year, and the government and opposition coalition are almost neck-and-neck in the polls, with support for Albanese’s administration narrowing. That puts the current PM in a difficult situation: he won’t want to make enemies of the influential media sector ahead of an election campaign, but popular support – as well as that of many of his own MPs – is also in favor of a ban. The current position of compromise is likely one reflecting the need for this delicate political balancing act.

Crossbench support: One consequence of the Labor party’s proposed fudge of a watered-down bill is that the range of opinions now represented may make it difficult to get crossbench support. Some MPs oppose any restrictions, while others are now unlikely to vote for a partial restriction due to their support for a complete ban. Getting complete support for one proposal may now prove very challenging.

What are the odds?

At present, it seems like the Albanese government is likely to press ahead with its proposed compromise. While it certainly won’t please everyone, it is likely to get the support of both the Australian parliament and media organizations.

A full ban seems unlikely given the media pressure and Albanese’s own personal reluctance to clearly nail his colors to the mast. While potential taxes may find a way out to aid the media companies, they’re unlikely to be well received by gambling operators, which would also put the government in a difficult situation. Overall, despite increasing opposition and anger from public figures towards the watered-down solution, that option is still the clear favorite as the race approaches the finish line.