Australian MPs Advocate for Closing Gambling Ad Loopholes

(AsiaGameHub) –   Australian crossbench MPs are cautioning that regulations for gambling advertisements on podcasts, social media, and through influencers must be strengthened to prevent the exploitation of regulatory gaps.

According to a report by The Guardian, a spokesperson for Communications Minister Anika Wells stated that the government’s planned partial ban on gambling ads will incorporate more “specific definitions” concerning the timing and placement of restrictions to close potential loopholes.

She said: “Further details and specific definitions will be refined through the legislative drafting process, which will include consultation with key stakeholders.”

The discussion concerning gambling advertising in Australia has persisted for a significant period. At the start of this month, Prime Minister Anthony Albanese detailed the Labor government’s intention to implement “strong and decisive actions” to reduce gambling advertisements nationwide. He stated this move would offer better protection for young and vulnerable people.

This position represents an escalation from a 2023 parliamentary report, referred to as the Murphy Report, which put forward 31 recommendations for reforming Australia’s gambling regulations – a central proposal was a complete ban on gambling advertisements.

However, the government’s pace in enacting the report’s recommendations has been relatively slow, leading to frustration among many backbench MPs.

Closing gambling advertising loopholes

The partial ban will mandate that streaming video, music, and podcast platforms, along with search engines and websites hosting gambling content, must verify that users are logged in, are aged over 18, and can choose to opt out of viewing betting content.

Dubbed a ‘triple lock functionality’, the government anticipates this measure will reduce the public’s exposure to wagering promotions.

Nonetheless, The Guardian has cited “several industry sources” indicating that streaming services, including Apple Podcasts, are contemplating new age-verification systems. There are also suggestions that platforms might remove all betting content completely, arguing that no straightforward method exists to comply with the new rules.

At present, regulations pertaining to individual podcasts remain ambiguous; questions have emerged regarding who is responsible for removing gambling advertisements or implementing the opt-out feature.

Simone McCarthy, a Gambling and Public Health Researcher at Deakin University, argued that current rules require further tightening to address grey areas involving podcasts and social media.

She said: “When people work with advertisers on podcasts, they often do an ad that is embedded in their podcast, so it … doesn’t sit separately to the whole content. If the ad itself is kind of built into the podcast itself, being read by the host, you can’t just turn that off.

“We just know that podcasts are hugely popular with younger audiences and … they’re not easy to regulate in terms of age access and age gating that the government hopes to do. So I think it can create a bit of a blind spot in current policies that are built around platforms where audiences can be more clearly separated.”

She added that this strengthening of rules should also extend to social media platforms, warning that content creators and influencers might discover methods to disseminate wagering content on sites like Instagram, X and others.

“We know that if we leave gaps in gambling regulation, the industry doesn’t hesitate to just move into those gaps,” she said.

The question of protection

Earlier this month, Albanese clarified in a speech at the National Press Club that the crackdown on gambling ads is part of the government’s effort to strike a balance between “letting adults have a punt if they want to, but making sure our children don’t see betting ads everywhere they look.”

However, the effectiveness of the partial ban was questioned last week when a new report from the Office of Impact Analysis (OIA) concluded the measure would only cut the annual amount wagered by AU$62.7m (£33m) – a reduction of roughly 0.8%.

The OIA’s report indicated that the advertising restrictions would affect 2,461 industry participants, including betting firms, broadcasters, podcasters, and streaming services.

Independent Senator David Pocock remarked that the presence of gambling ads in popular podcasts demonstrates how “this predatory industry innovates and pivots quickly to target new mediums and markets”. He believes additional action is necessary.

He said: “Protecting Australians, especially children and young people, from gambling advertising on popular online platforms from podcasts to Spotify to YouTube seems almost unworkable under the current proposal.

“The government’s own analysis found that this partial ban is going to cost more to enforce and deliver less benefits to the nation.”

Independent MP Kate Chaney, supported this perspective, suggesting the government’s reforms need to reassign the responsibility for opting out of wagering ads.

She added: “Calling it a ‘triple-lock’ makes it sound much more protective than it actually is – most families share streaming accounts and unless parents painstakingly go through each platform, website and streaming service and manually find and activate the opt-out options, gambling ads will continue to be seen.

“There is little real-world evidence to suggest an opt-out model will reduce the social, emotional and financial harms caused by gambling in Australia.”

The debate over how extensively gambling advertisements should be restricted in Australia continues intensely, with no immediate resolution in sight.

Yet, judging by recent developments, demands for stricter limitations seem to be gaining traction – suggesting the era of hearing betting ads in podcasts or on social media may be drawing to a close.