The gambling industry is pushing back against ad-blocking, but the evidence is against it

With parliament sitting this week, the federal government is trying to finalize its proposed laws to limit gambling advertising.

The current proposal is a partial ban, with limits on ads during general TV programming. Earlier, a parliamentary committee, chaired by current Speaker of Parliament Peta Murphy, unanimously recommended banning gambling ads altogether.

The betting industry, surprisingly, does not want a total ban. Speaking on ABC Radio, the chief executive of Responsible Wagering Australia (the industry’s top group), Kai Cantwell, argued that the restrictions were pushing gamblers into illegal offshore services. He said this has already happened in other parts of Europe. He also rejected advertising suggestions it was customary to bet on children.

But is that true? What does the evidence say about banning ads like this?

Marketing is important

The gambling industry is one of the most harmful new industries of modern times. The evidence on the dangers of gambling is clear. They include relationship breakdown, illness, job loss, debt, crime, homelessness, domestic violence and suicide.

Advances in technology have helped the industry produce products that are more advanced and readily available. They promote these products using innovative marketing strategies that can quickly target people through various media channels, including TikTok. The industry is run by lucrative and powerful companies, including those that authorize and operate legal gambling, such as publishers and game codes.

For the gambling industry to make money, people have to lose. And that is why there is a need for continuous customers. Marketing is central to industrial business, creating leads for new products and brands.

As companies compete to market their products, children and young people are exposed to excessive gambling advertising in their daily lives. Evidence from many countries shows that advertising does its job – contributing to the habituation of gambling for young people, promoting recognition and recall and creating positive attitudes about gambling. It also creates the impression that gambling has less risk associated with it. As one 11-year-old told us:

When a child reaches 18, he will want to gamble all the time.

Of course, the gambling industry does not agree with these decisions. When asked if he thinks gambling has become mainstream for kids in recent years, Cantwell demurred.

He acknowledged that more could be done to ensure that children were not targeted by advertisements, but went on to say that it was an illegal market on the beach that was “mainly advertising to children and young people”. Cantwell said Australian donors are working with the government to ensure children are not targeted by advertising.

That duty does not appear to prevent children from being exposed to gambling advertising wherever they go. Sportsbet and TAB are the most popular brands among young people. Young people also told us that they would bet on a particular brand because of familiarity, they liked the ads, or they saw the company promoting deals or offers. Another said:

Sportsbet, because when you bet with them you can get your money back.

What did the research find?

This is why recent parliamentary inquiries have unanimously recommended the need for stronger measures to regulate gambling advertising. It proposed legislation to implement a blanket ban on gambling advertising, with the primary goal of protecting children. These calls have been supported by many Australian politicians and many others who have stressed that partial restrictions will only achieve partial results.

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Read more: Government under pressure to ban gambling ads. History shows that half measures don’t work

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Perhaps unsurprisingly, gambling companies, and those that profit from gambling, are strongly opposed to major restrictions on gambling advertising. They use many techniques to delay, divert and divert calls for evidence-based policies that can disrupt the paths of their products.

In his speech, Cantwell advocated a “balanced, unwavering approach” and “sensible changes”: in other words, nothing to create an unpleasant industry. He added that a blanket advertising ban “would risk driving Australian consumers to illegal internet providers”.

However, experts have questioned these claims. The focus on protecting young people overshadows any claims about the effect of advertising restrictions on driving people to unregulated markets. Financial counselors, at the forefront of helping those recovering from gambling-related injuries, said:

In the field of financial advice, we recognize that the greatest risk comes from Australian license holders [who can advertise heavily]. We see only a small amount of gambling and unregulated, overseas workers […]

The parliamentary inquiry also focused on illegal offshore gambling. They cited testimony from the Spanish governor. The gambling industry, television and broadcasts protested against the changes there as well. After implementing ad restrictions, the administrator found:

None of the dire predictions came true […] TV stations said they would go broke without gambling money and this has not happened yet […] Spanish sports teams have said that they will not compete if they are the only ones not allowed to be sponsored, and this has not happened. […] The threat of gamblers moving to illegals was also unprecedented.

The inquiry agreed that continued action against illegal offshore gambling was an important part of preventing gambling harm. It is important to note that since November 2019, the Communications and Media Authority (ACMA) has actively banned 995 illegal gambling and related websites.

Although there will always be ways for people who intend to access these websites, the increased resources for the administrator will help ensure that people are prevented from accessing them where possible.

In her introduction to the parliamentary inquiry report, Peta Murphy thanked those with real-life experience of the dangers of gambling who gave evidence to the inquiry. He said:

It took incredible courage and strength to come forward, and it is your experiences, which are explained in your words, that formed the basis of this report and its proposals.

Now we are waiting to see if the government will show courage and political strength to fight the powerful interests.