Author: Ava Crawford

The Guardian has recently announced a global ban on all forms of gambling advertising. The media outlet stated they don’t wish to profit from gambling ads, gambling promotions or any services which promote riskier betting behaviour.

In this article, we’ll explore what the gambling advertising ban means and its impacts on the online gambling industry. We’ll also discuss some of the broader issues around sports gambling ads in Australia.

Why Has The Guardian Implemented a Betting Advertising Ban?

The Guardian has issued a blanket global ban on all gambling ads across each of its publications. Guardian Media Group’s Australian Chief Executive, Anna Bateson, believes the news outlet has an obligation to do the right thing for readers.

The Guardian will no longer accept advertising money from gambling companies or gambling sponsors. The intention is to help reduce gambling harm. Which the outlet believes may be linked to an increase in betting advertising and sports betting ads worldwide.

Reducing riskier gambling behaviour

A recent study by the University of Sheffield showed a correlation between exposure to gambling advertising and increased intent to gamble regularly. Ms Bateson believes that this correlation could lead to a surge in public health and social problems. Such as mental health issues, particularly for young people. She welcomes the ban on gambling ads despite the impact it will have on the organisation’s bottom line.

The decision comes at a time of rapid growth of online betting on sporting events. Australians, particularly young adults, are gambling more than ever. Access to sports betting and online gambling has never been easier with the use of mobile devices.

Community concerns about gambling harm

Community concerns have been a significant factor in the publication’s decision to ban gambling ads in Australia. Many people believe gambling ads and sports betting are becoming normalised among children and young people. And that action is needed to limit children’s exposure, particularly to the volume of gambling ads shown on free to air tv.

While gambling ads were once limited to live sport on tv, they’ve spread to more mainstream tv programs. Community groups are calling for more to be done to help protect children and young people.

There is also increased public pressure and lobbying at the federal government level to help prevent problem gambling. For example, banning gambling advertising like tobacco advertising. Or introducing tighter measures similar to alcohol advertising in Australia.

What Types of Gambling Ads Are Included in The Ban?

The ban covers all forms of gambling advertising:

• sports betting
• gambling products
• online casinos
• scratchcards

The only exclusion is lottery, which is believed to offer some positive social benefits as it raises money for good causes.

What Impact Will Banning Gambling Ads Have?

Media outlets worldwide are reliant on revenue from advertising. And online gambling and betting companies are big spenders. For example, in the UK, TV channels say their business models are increasingly dependent on gambling advertising from bookmakers. But it’s not yet clear how many media outlets will have the financial backing to ban gambling ads completely like The Guardian.

Financial impact

Ms Bateson says that The Guardian can make these decisions due to their independent ownership structure. But she does admit the move will cost the publication millions of dollars each year in advertising revenue. She also stated online gambling and sports betting advertising are the fastest-growing ad category.

Emerging platforms for online gambling and betting ads

Parents, in particular, are pushing for change and tighter regulations. Especially as betting advertising begins to move into other forms of media. Social media platforms are now becoming popular channels for gambling promotions. For example, TikTok is trialling gambling advertising in Australia.

Gambling Advertising in Australia

Gambling ads and sports betting advertising are undoubtedly on the rise throughout Australia. Analysis by Nielsen Research shows the gambling industry spent $287.2 million in 2021 on advertising in Australia, up from $89.7 million in 2011. In 2021, there was an average of 948 gambling advertisements broadcast daily on free to air tv in Victoria. Up from 374 daily ads on free to air tv in 2016.

The Australian Gambling Research Centre states that 78% of Australian adults said they saw or heard betting advertising at least once a week over the past year. And around 40% stated they saw gambling advertisements four or more times a week.

Current gambling advertising restrictions

Each state has slightly different rules when it comes to advertising and the gambling industry. For example, in Victoria there is a ban on gambling and sports betting ads on roads and public transport, and within 150 metres of schools. In a recent review of gambling ads, NSW, Queensland and Tasmania governments said existing rules are insufficient. While South Australia suggested an outright ban on sports-betting ads.

Responsible Gambling and Young People

According to a new report conducted by the Victorian Responsible Gambling Foundation, one in four children can name four gambling brands or more. Highlighting just how often gambling-like content is shown during family-friendly shows on free to air tv.

Young people are at the most risk of gambling harm, particularly between the ages of 18 and 34. Largely because of the increased volume of advertising throughout radio, TV and online.

Additional Changes to Australia’s Gambling Industry

The Albanese Government recently announced that Australian gamblers would be banned from using credit cards for online betting. It’s a move to help address gambling harms associated with problem gambling and encourage punters only to gamble when they have the funds to do so.

But it could signal other changes that may impact the online gambling industry (and gambling ads) in the years to come.

The Federal Government has announced it will ban credit card usage for online betting and gambling sites. The Interactive Gambling Amendment Bill 2023 will also include other credit-related products and digital currencies. Companies found not enforcing the new regulations are set to face significant fines.

The move comes after significant pressure from the Australian Banking Association. The association believes credit cards are unsuitable for online gambling and cause considerable harm to consumers.

Let’s explore what the ban includes when it comes into effect and what it means for online gambling in Australia.

Long Road to Credit Card Gambling Ban

There has been discussion for years regarding banning credit cards for online gambling.

In 2019, the Australian Banking Association hosted a consultation on credit cards in online gambling that also looked at how banks could help to protect online gamblers better. Not long after, in 2020, the UK successfully introduced its own credit card gambling ban.

At the time, operators including Bet365, Entain and Betfair stated they’d support a ban, along with Responsible Wagering Australia.

Some banks took matters into their own hands and introduced bans on credit cards to fund gambling independently. In October 2021, Bank Australia announced their account holders would no longer be able to use credit cards for gambling online.

“Our research shows the majority of our customers believe credit cards should not be used for gambling, and as a customer-owned bank, our customers’ opinions are a big part of our decision making,” Bank Australia said.

National Australia Bank also became the first bank in Australia to allow customers to block gambling transactions using its mobile app.

Wider Efforts to Combat Gambling Harm in Australia

The Bill, which implements recommendations from the Parliamentary Joint Committee on Corporations and Financial Services in 2021, continues the Federal Government’s work to help protect vulnerable Australians from online gambling harms.

The government recently introduced measures, such as the launch of Betstop, a national self-exclusion register, to help people exclude themselves from online gambling.

Other initiatives include monthly activity statements outlining wins and losses and new evidence-based taglines to replace ‘Gamble Responsibly’. Consistent training has also been established for staff working in the gambling industry nationally. Finally, they’re set to introduce mandatory pre-verification that requires operators to verify a customer’s identity before they can place a bet.

There is also a range of additional recommendations the government is set to review from the parliamentary inquiry that addresses the harm of online gambling. A meeting between state, territory and Commonwealth ministers will likely be held later this year.

Amanda Rishworth, Minister for Social Services, said the ban represents the final step by the government to address the harm caused by online gambling.

Why Ban Credit Cards?

In Australia, credit cards are already banned at land-based facilities and have been for several years. The Bill brings online gambling in line with this by placing a blanket ban on forms of credit card gambling.

Australian Banking Association Chief Executive Anna Bligh says the reform is well overdue.

“Using credit cards for gambling can create a unique harm where large amounts of debt can be accumulated in a short period. For people with a gambling addiction, a credit card can lead to severe financial stress for the individual and their family,” Bligh said.

Minister for Communications, Michelle Rowland, also believes the Bill is a step in the right direction.

“The Australian Government remains committed to protecting Australians from gambling harms. Legislating a ban on the use of credit cards for online gambling will help to protect vulnerable Australians and their loved ones”, she said.

When Will This Be in Effect?

Online gamblers and businesses will be given a six-month transition period to implement betting and business behaviours.

Casino operators will face fines of up to $234,750 if they fail to follow the new laws.

Any Other Important Details?

The new law also expands the powers of the Australian Communications and Media Authority (ACMA) to ban other credit-related products that may be introduced in future years.

The authority will also be responsible for penalising companies that don’t follow the ban.

Details of The Ban

The Victorian Gambling and Casino Control Commission (VGCCC) is set to introduce a betting ban on all under‑19 sports competitions in the state. The ban will include betting on individual players’ performance for anyone under 18 years, in both junior and senior sports.

The VGCCC raised concerns in letters sent to all major bodies that control sports and sports betting providers that betting on minors poses gambling‑related harm concerns and that it normalises gambling on events that involve children.

What’s Covered?

The ban is set to prohibit sports betting providers from offering bets on:

• Any sporting event where all of the participants involved are minors.
• All sporting events for under‑19s competitions.
• All open events where there are minors playing — meaning bets can be placed on teams, but not on outcomes for players in those teams who are under 18 years.
• Any outcomes where individual players are minors, e.g. first goal scored, most disposals or first wicket taken.

Responsibilities of Sporting Bodies

From 3 August, both sports governing bodies and betting operators will have only 60 days to ensure compliance with the new rules. Sports controlling bodies must amend any agreements with betting providers to ensure they stop offering any markets that involve minors. The ban is also set to apply to any sports, whether they’ve been governed by an approved sports controlling body or not.

After 60 days, the VGCCC has stated it will be an offence for any operator to offer betting on events that involve minors. They may face losing approval to run sports in Victoria or even prosecution.

Victorian Gambling and Casino Control Commission

The VGCCC is the new, independent regulator of the gambling industry in Victoria. Formed in July 2022, the group has stronger powers and is dedicated to focusing on regulating gambling to ensure integrity, safety and fairness for all.

Their focus is on cracking down on any gambling operators who don’t protect people from gambling harms, including those who act dishonestly and break the law.

VGCCC chair Fran Thorn said of the new changes, “We think minors deserve to be protected. It also raises integrity issues, with the prospect of people attempting to influence how minors might behave playing sport.”

Reflection of Other Reforms

The decision reflects other Victorian and Australia‑wide gambling reforms we’ve seen of late, including the introduction of an Australian wide register for people to self‑exclude from online gambling, and changes to electronic gaming machines.

Last month, Victorian Premier Dan Andrews announced sweeping changes aimed at reducing harm from electronic gaming machines. The reforms are still subject to final approval but include changes to ID verification, reduced load‑up limits, curfews for venues, reduced spin speed and mandatory pre‑commitment limits.

Premier Andrews said that his state’s reforms would provide the strongest gambling harm prevention in Australia.

The Royal Commission

Victorian reforms follow the 2022 Royal Commission inquiry that investigated malpractice at Melbourne’s Crown Casino. The casino was found unsuitable by the Commission to hold a licence in the state.

The findings led to the formation of the Victorian Gambling and Casino Control Commission to regulate gaming throughout Victoria. The group is set to take over the majority of the functions of the Victorian Responsible Gambling Foundation from 1 July 2024.