Australia moves toward tighter gambling advertising rules as online casino debate intensifies

Currently, Australian lawmakers are deliberating whether existing advertising controls are sufficient to prevent online casino advertising from being apportioned across digital media advertising and broadcast media.

Between public health and gambling advertising control, broadcasters, media, and public health interest groups have been revisiting the potential harms and lost revenues. The discussions revolve around the adequacy of the control in the rapidly evolving digital advertising ecosystem.

In Australia, gambling advertisements on digital media platforms, streaming services, and broadcast sports media have increased the advertising of gambling. The digital gambling advertisements empower gambling services to breach previously protective consumer environments.

The Australian Communications and Media Authority reported that advertising of online gambling services has increased in the level of digital gambling services. The Australian Institute of Health and Welfare estimates that around 1.6 million Australians experience gambling-related harms annually.

Online casinos offer promo deals, like a $20 no deposit bonus, which are marketed on welcome offer comparator sites for customers to sign up and take advantage of a deal. Along with sign-up deals, the operators aim to capture first-time users with these promotional deals.

Now that regulators are starting to understand the mechanics of an algorithm, they are focusing on advertising that assesses user behavior to promote gambling. Compared to the traditional advertising that circulates on a television network, direct advertising through an algorithm may impact users who have a gambling vulnerability more.

The call for more advertising control is growing. Law programs are gaining traction, and the control of advertising for gambling is being scrutinized by lawmakers. The Australian parliament is holding an inquiry into the gambling advertisement in the online setting and is focusing on restrictions in advertising that is seen during peak-time live events, such as sports events.

To try and maintain a workable system for both broadcasters and advertising operators, the number of advertising spots that are sold in both the digital and television formats may be limited. Such measures would aim to reduce the gambling advertisement risk while maintaining a functional system.

Providing gambling advertisement restrictions will ultimately impact revenue streams for the operators, as they state.

The sports and entertainment networks' advertising sponsors have warned that media networks may be forced to alter the way they distribute content if advertising revenue decreases. There is an ongoing discussion about the nature of the advertising reforms, as gambling advertisement restrictions are assessed.

The Australian gambling advertisement debate definitely focuses on online betting as they expand gambling advertisement beyond other digital platforms. The sales of online gambling companies have increased dramatically in the last 10 years due to more and more customers being able to bet and pay on their mobile devices.

H2 Gambling Capital reports that online gambling takes the largest share of total gambling turnover in Australia and in various developed economies. Operators attempt to maximize interest in extremely competitive markets with digital advertising and promotional incentives.

Gamblers may witness personalized advertising and sign-up bonuses, and other offers constructed to maximize engagement. Regulators are now considering whether their regulations will be able to keep up with digital marketing, which will continue to become more sophisticated.

Experts in public policy have identified that regulatory frameworks are generally lagging, thus making advertising and policy enforcement a challenge.

Public health advocates have warned the public that the potential risks of gambling advertisements may cause increased incidences of risky behaviors. Studies have identified a direct relationship between gambling advertisements and risky gambling behaviors, particularly among an at-risk population with low to moderate socio-economic status.

Victoria´s Responsible Gambling Foundation’s health study has shown that there are observable increases in the reporting of gambling behaviors among the population with frequent exposure to gambling advertisements in the marketing and media mix.

Health advocates have expressed concern over advertising gambling to sports and youth audiences. They have argued that normalizing gambling and advertising repetition are likely to adversely affect at-risk youth.

For the most part, advocacy coalitions have been urging the government to develop comprehensive policy reforms to bridge the gap between the state and federal policy frameworks. They also argue that policy reforms should provide for sport and entertainment sponsorship policy guidelines.

Australia's pivotal policy decision is on the horizon with continued consultations through 2026. Legislators are entertaining a spectrum of measures, from enhanced advertising limitations to selective media placement prohibitions.

These decisions will influence the nature of betting content across digital and broadcast domains. The legislation will also have to negotiate trade-offs that allow the economy to grow, especially in light of the economic downturn caused by the COVID-19 pandemic.

More submissions from industry, media, and health groups are expected to inform further policy positioning and development by officials, along with consideration of how the likely regulatory framework could be enforced on digital advertising that is characterized by rapid change.