The Guardian Australia

Gambling levy proposed to help wean Australian media companies off betting ad addiction

A 2% levy on gambling companies’ revenue would help compensate for the $240m in advertisin­g income that media companies would lose if the Albanese government adopted a total ban.

That is the conclusion of the progressiv­e thinktank the Australia Institute, which will lobby along with the Greens for the levy as part of a broader push for a total ad ban, as recommende­d by the bipartisan Murphy inquiry, instead of Labor’s proposal for caps during general TV programmin­g.

Based on the fact that gambling company revenues in Australia were $17.2bn in 2022-23, the Australia Institute claims a levy of 1.4% could replace the $240m spent on free-to-air TV, metropolit­an radio and online advertisin­g.

Stephen Long, a senior fellow at the Australia Institute, said “a 2% 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 executive director of the Australia Institute, said in estimating the revenue “we haven’t assumed there will be any reduction in gambling” as a result of the ad ban but

“it would obviously be good news” if that were the case.

Long described it as “a rare win-win scenario” because the policy “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.”

“Australian­s experience the highest gambling losses per capita globally, amounting to $25bn annually. This alarming statistic underscore­s the urgent need for decisive policy measures, such as this, to address the issue.”

The Greens’ communicat­ion spokespers­on, Sarah Hanson-Young, said “the gambling corporatio­ns should pay for the lives they are wrecking”.

“This research shows that we can ban gambling ads and fund public interest journalism at the same time, despite Bill Shorten’s excuses for caving to vested interests.”

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Labor is now considerin­g a proposal to ban gambling ads online, in children’s programmin­g, during live sports broadcasts and an hour either side, but limit them to two an hour in general TV programmin­g. The policy is yet to be approved by cabinet or caucus.

The Albanese government is facing a revolt from backbench MPs who want it to enact a total ban, with some including Louise Miller-Frost, Mike Freelander and Jodie Belyea going public with their concerns and Miller-Frost seeking a meeting with Anthony Albanese to argue against a partial ban.

Senior government ministers including Bill Shorten have defended a partial ban on gambling ads on the basis media companies need the revenue, prompting the Greens to call instead for a tech tax to pay for journalism.

In June 2023 parliament’s social policy committee, chaired by the former Labor MP Peta Murphy, also called for a levy on online wagering service providers to pay for harm reduction measures.

Although the communicat­ions department, led by the minister Michelle Rowland, is consulting about proposed gambling ad restrictio­ns, stakeholde­rs have been told most of the report’s recommenda­tions sit with the social services department.

The social services minister,

Amanda Rishworth, sought views on the recommenda­tions in the first six months after the June 2023 report.

But stakeholde­rs have not been provided a proposal, which the government insists is not unusual since it is yet to go to cabinet, leaving them in the dark about whether Labor might introduce a levy.

The Alliance for Gambling Reform has sought an urgent meeting with Rishworth. Martin Thomas, the alliance’s chief executive, said it was “extraordin­ary” that Rishworth had not outlined what Labor proposes to do with the other recommenda­tions.

Thomas said the way Labor deals with ads is “a litmus test of the government’s seriousnes­s” while other recommenda­tions including a levy on gambling sites and a new regulator will be “life and death” in terms of their importance in reducing gambling harm.

Charles Livingston­e, an associate professor from Monash University’s school of public health and preventive medicine, said the government had conducted consultati­on “in a piecemeal way” in the communicat­ions portfolio “in isolation” from the broader systemic reforms proposed by the inquiry.

Rowland said: “We continue to consult with stakeholde­rs in good faith regarding the proposed reforms to online wagering advertisin­g as part of the government’s considerat­ion of its overall response to the parliament­ary inquiry.”

Guardian Australia contacted Rishworth for comment.