Gambling Advertisements in Sports: What are the Odds of Increased Regulation?

AFL chief executive Gillon McLachlan and NRL chief executive Andrew Abdo appeared before a parliamentary inquiry into online gambling earlier this month, where the two leaders were questioned on their sports’ engagement with the wagering industry. Although McLachlan and Abdo acknowledged the risks of gambling harm, they ultimately stood opposed to an increase in restrictions to gambling promotion within their sports on the grounds that it would have significant financial consequences for their games. This Micro Blog will discuss the prevalence of gambling promotion in Australian sporting events and consider the defence presented by McLachlan and Abdo at the parliamentary inquiry. 

Gambling advertisements in Australia: The need for regulation

It is estimated that gambling and gaming companies spent around $310 million on advertising in 2022, the majority of the expenditure coming from Sportsbet and Tabcorp. In light of this, it is unsurprising that in the same year, an average of 148 gambling ads featured on free-to-air TV every weeknight and the value of bets taken by Australian sports gambling companies exceeded $50 billion. 

The intense saturation of the sports media landscape with gambling advertisements ultimately encourages sports fans to engage in gambling behaviour. Indeed, the head of parliamentary inquiry cited ‘powerful evidence’ of harmful practices related to gambling advertisements and promotions in Australia’s sporting codes. Considering that 46% of people who gamble are considered at some risk of gambling harm, politicians, health experts and sports fans have asserted that increased regulation of gambling promotion will be essential in creating a safer sports media space. 

McLachlan and Abdo: The case against regulation

Appearing before the parliamentary inquiry, McLachlan stated that the existing regulations around gambling advertisements are sufficient in the AFL context. While Abdo said the NRL was open to slight changes to regulation, he failed to make any practical suggestions when asked for specifications. 

A key reason for McLachlan and Abdo’s reluctance towards regulatory improvement is that AFL and NRL are major beneficiaries of sports betting through receiving a proportion of each bet placed on their games. In particular, McLachlan highlighted the importance of gambling revenue to the AFL, stating that if the government was to make any changes to reduce the level of advertising, it would have an effect right down to the ‘grassroots’.

McLachlan’s assertion that the gambling industry helps fund Aussie rules from the community level all the way to the elites implies that the viability of the sport would be under threat if the AFL isn’t able to sign sponsorship deals with major betting companies. 

However, it should be recognised that sporting codes can service the demands that exist for gambling and receive their dividends without the excessive promotion of sports betting companies. That is - limiting the display of gambling advertisements in peak periods would not prevent the manifestation of gambling intentions in those who actively seek to participate, but it may reduce instances of gambling harm in those who are triggered by advertisements.  It ultimately comes down to whether the sporting code is willing to meaningfully prioritise harm prevention over revenue maximisation.

Moving forward

If an increase in gambling advertisements in and around sporting events in Australia is to be successful, there are several seemingly irreconcilable factors that have to work together. Namely, the fact that the codes themselves take home some proportion of all bets that are received must be weighed against the damage gambling can do to the community. 

The committee is expected to deliver its recommendations from the parliamentary inquiry by the middle of the year. 

For more information about the parliamentary inquiry, please see the following:

https://www.aph.gov.au/Parliamentary_Business/Committees/House/Social_Policy_and_Legal_Affairs/Onlinegamblingimpacts 

https://www.theguardian.com/society/2023/mar/01/powerful-evidence-of-online-gambling-harm-federal-parliamentary-inquiry-head-says 

https://www.smh.com.au/politics/federal/not-a-major-issue-afl-nrl-bosses-defend-ads-at-gambling-inquiry-20230404-p5cy24.html 

For more information about sports gambling in Australia, please see the following:

https://www.abc.net.au/news/2023-02-25/sports-betting-australia-50-billion-house-representatives/102021668 

https://www.sbs.com.au/news/article/shocking-number-of-australians-ask-banks-to-prevent-them-from-gambling/f8mw0nb4t 

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