A ban on gambling ads would clear the way for other industries to advertise. This includes junk food, banks, and fossil fuel companies.
The Australian Institute claims that a 2% levy on operator revenue would replace the advertising income lost due to a gambling ad ban. Moreover, it would cover budget shortfalls at the ABC or Australian Broadcasting Corporation.
The proposal aims to address the government’s concern that a gambling ad ban would harm free-to-air broadcasters.
With revenue and audiences declining, MPs like Bill Shorten have taken to the airwaves warning broadcasters are under attack from social networks like Facebook. Shorten said that taking away a key revenue stream would potentially fatally undermine these media companies.
The total gambling revenue for the 2022-23 fiscal year was AU$17.2 billion. This is equivalent to £8.9 billion, €10.4 billion, or $11.5 billion. Thinktank explains that this is according to the Australian Bureau of Statistics.
Between May 2022 and April 2023, operators invested $238.6 million in free-to-air TV, metro radio, and online platforms, including social media. This information comes from figures provided by the Australian Media and Communications Authority (ACMA).
The Australian Institute says, hence, a charge of 1.4% would cover the gambling advertising shortfall for broadcasters. Shoring up the budgets of ABC, a 2% levy would raise $344 million.
The Institute adds that for the government, even without the levy, giving money to the free-to-air networks and banning the ads would be a small cost compared to the costs that gambling imposes on society. For the media, it’s far better than a win-win.
Broadcasters believe they would generate additional revenue. This is through selling the slots to other industries producing a revenue bonanza.
