A two per cent levy on the profits of gambling companies could more than atone for the revenues lost by media companies in the face of a total ban on betting adverts on TV.
Some $240 million would be lost by media owners if a total ban on gambling adverts was adopted by the Albanese government, as recommended by the bipartisan Murphy inquiry.
However, with gambling firms’ revenues standing at $17.2 billion, progressive thinktank the Australia Institute has said that a two per cent levy would represent a straightforward solution to media companies’ drop in earnings.
Stephen Long, a senior fellow at the Australia Institute, said “A two per cent levy on the gambling industry, which represents a tiny fraction of the money lost on wagering, could compensate the media for any lost revenue resulting from a gambling ads ban”.
Richard Denniss, the exec director of the Australia Institute noted that it hadn’t “assumed there will be any reduction in gambling” as a result of the ban, though it would be “good news” if that were the case.
Long said that such a move would be a “rare win-win scenario” as it would “reduce the harm to the community that gambling advertising causes, while simultaneously guaranteeing a revenue stream for public interest broadcasting”.
“The free-to-air networks could then sell the advertising slots the gambling companies occupied to other businesses while pocketing the levy as well.”
Labor is considering a proposal to ban gambling ads online, in children’s programming, during live sports broadcasts and an hour either side. It would limit gambling ads to two per hour in general TV programming. The policy is yet to be approved by cabinet or caucus.
However, the Albanese government is facing internal criticism after the Murphy Inquiry, helmed by former Labor MP Peta Murphy called for a total ban.
“I strongly believe the only thing we should be doing is a total ban on the advertising,” said Labor MP Mike Freelander.
“The gambling companies are engaging people at a very young age. It is addictive and very difficult to manage, and if it is on TV all the time, you can’t escape it”.
