The federal government has landed a deal to pass new legislation to restrict gambling advertising. The new legislation contains several important measures, but falls far short of what is needed to prevent gambling harm.
The government’s gambling reform bill was a long overdue response to the 2023 Murphy inquiry, which unearthed shocking evidence of harm and predatory practice by the online gambling industry.
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Australia has historically taken a lax approach to gambling, and it shows. Gambling is everywhere: on our screens, in our pubs and clubs, and available anytime at our fingertips. And it’s harmful: one million Australians either suffer from, or live with someone suffering from, severe gambling harm. Many more lose more than they can really afford.
Gambling normalisation starts young, and advertising is a major culprit. Gambling advertising exposes large numbers of Australians, including children, to dangerous products, and increases gambling losses, with little corresponding economic or social benefit.
So, what will the new legislation do and why is it not up to the job?
What the gambling reform bill does
The Interactive Gambling Amendment (Gambling Reform) Bill introduces restrictions on gambling advertising on TV, radio, and online.
There will be a new daytime cap on gambling ads on TV – but the cap still allows three advertisements every hour from 5am to 8:30pm. The new ban on gambling ads on radio is also weak, applying only on school days and only for two hours on those days.
The restrictions on gambling ads during live coverage of sporting events across all platforms, including online, are a step forward. But the bill falls short of what is required to address the scale of gambling harm that the bill’s own explanatory memorandum recognises.
There are also new measures to prevent access to illegal gambling services, and to strengthen penalties and enforcement. While these are welcome, gambling harm is largely from legal gambling.
A Senate inquiry on the bill reported back this week. It recommended passing the bill but attracted 90 submissions that overwhelmingly called for it to be strengthened.
The government has since made amendments after criticism from the Coalition, the Greens, and the crossbench for not going far enough.
In a deal with the Coalition, restrictions on inducement-based marketing were added, as well as a “one-stop shop” for people to opt out of online wagering advertising.
Two Coalition MPs crossed the floor in protest, but the bill is now expected to pass the Senate this week, with the support of both major parties.
Where it falls short
The new legislation contains several important measures, but unfortunately falls well short of the Murphy inquiry’s recommendations. Remarkably, the Murphy inquiry into online gambling harm reached multi-partisan consensus on all 31 recommendations.
In particular, it called for a comprehensive ban on “all gambling advertising on all media” (broadcast and online), to be phased in over three years, and a full ban on inducements “without delay”.
The phased approach was designed to give sporting bodies and broadcasters time to find replacement revenue.
The government could have opted for a phased approach with its bill too. The new daytime cap on gambling ads on TV could be phased to zero over time, with similar restrictions extended to radio and online streaming, and eventually to a complete ban across all media. But unfortunately there is no phased plan.
Australia is left with a partial ban, and – as the Murphy inquiry argued – this is not enough. It still allows widespread exposure to gambling advertising and, despite amendments, still allows high-risk direct marketing and inducements to most customers.
Read more: Bipartisan deal on gambling includes a review after three years
The problem remains
Australia has the highest gambling losses per person in the world, and our losses per person have grown almost every year since reporting began in 1975.
Gambling products are not like other forms of entertainment. Pokies and online betting in particular can be harmfully addictive, and consumers are vulnerable to misunderstanding the product. It is all too easy to lose too much.
Stronger consumer protections are needed. The Gambling Reform Bill was a missed opportunity to go further.
But gambling regulation is not a federal responsibility alone. The states can and should step up too.
The most effective way to make gambling safer is to introduce mandatory pre-commitment with maximum loss limits for the most dangerous gambling products. No one should lose their house, or their life, on the pokies or a betting app.
The federal government should establish a national pre-commitment system for online gambling, and state governments should roll out state-wide pre-commitment schemes for pokies.
The new legislation doesn’t go far enough on advertising restrictions but was also a missed opportunity to lay the groundwork for national reform.
The major parties might be hoping that this political behemoth is now dealt with. But squibbing it just makes it more likely it rears its head again.
This article was originally published on The Conversation. Read the original article.
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