Australia Expected to Implement Watered-Down Gambling Ad Ban

Media reports suggest that the Australian government is close to unveiling its response to the 2023 Murphy Report, which had recommended a complete ban on gambling advertisements. However, it now appears that the full ban proposed in the report is unlikely to be implemented. The Murphy’s law named after the late MP Peta Murphy, who championed the cause, is expected to be significantly scaled back.

According to reports, the government plans to introduce a cap of two gambling ads per hour until 10pm and a ban on gambling ads one hour before and after live sports broadcasts. This represents a softer approach compared to the total prohibition initially suggested by the Murphy Report.

Jamie Nettleton, partner at gaming law firm Addisons, spoke to iGB about the government’s likely stance, saying, “The government likely doesn’t want to upset the media although it is not yet clear what its final response will be.” He added, “These proposed restrictions are currently in the draft stage and have not yet gone to cabinet so there is no clear timeline for implementation.”

The proposed measures will require legislative approval, meaning they will need to pass through parliament before coming into effect.

The initial report by the House of Representatives Committee on Social Policy and Legal Affairs in June 2023 had proposed a complete ban on all gambling ads within three years, covering both broadcast and online media. While the full ban is unlikely, there are still significant restrictions expected for online advertising.

Reports indicate that online gambling ads could be prohibited from commercial radio during specific times of the day, such as from 8:30 am to 9:00 am and between 3:30 pm and 4:00 pm. A complete ban on online advertising remains a possibility, which Nettleton warned “would kill affiliates and influencer marketing.” He explained that “The sector has known this was coming and has been working to put restrictions in place for some time.”

Ongoing discussions between the government, sports organizations, gambling stakeholders, and media entities continue to leave uncertainties regarding what these restrictions could mean for sports advertising, including jersey sponsorships and on-field ads. Nettleton noted, “There has not yet been any clear consideration on this.”

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The revised proposals have drawn criticism from various quarters. On August 6, Independent Senator David Pocock criticized the softened stance on gambling ad restrictions. He questioned, “A phased in gambling ad ban would destroy sport – where have we heard that before?” Pocock also expressed his disappointment, calling it “a total cop out & betrayal of the late Peta Murphy’s legacy. There is support in the parliament to implement the Murphy Review recommendations in full – not some watered down policy to appease the gambling industry.”

Meanwhile, gambling operators like Tabcorp have already begun to reduce their advertising efforts. Tabcorp had initially supported a reduction in gambling advertising in its submission to the Murphy Report last year. Similarly, PointsBet has taken steps to scale back its advertising, as highlighted in its recent full-year results. The company no longer airs ads on free-to-air television between 6pm and 9:30pm and plans to remove its branding from stadiums and sports team jerseys by 2025, including sponsorship deals with the Manly Sea Eagles and Cronulla Sharks.

As the Australian government finalizes its response, the debate over the balance between curbing gambling advertising and maintaining media and sports funding continues. The coming weeks will reveal the extent of the new regulations and their impact on the industry.

Source:

Australian government expected to water down “Murphy’s law” gambling ad ban, igamingbusiness.com, August 6, 2024.