Australia finds itself at the center of an intense debate, with politicians from all sides urging both caution and decisive action regarding gambling advertisements, a topic that remains a hotbed of public discussion.
Prime Minister Anthony Albanese’s government has been hesitant to impose a total ban on gambling ads, expressing concerns that such a move could strip $240 million in vital revenue from free-to-air television and metropolitan radio, which rely on these funds to stay afloat.
Australia considers 2% levy on gambling firms as a remedy for ad ban impact.
The Greens suggest a counter-tax on global tech giants to fill the financial gap from a gambling ad ban. However, enforcing such a law could be challenging.
There’s also a risk that these tech companies might exit the market with the taxed products. Alternatively, the Australia Institute proposes a 2% levy on gambling companies’ revenue to cover the potential financial shortfall from a complete ban.
Stephen Long, Senior Fellow at the Australia Institute, believes a 2% levy on the gambling industry could offset revenue losses from a ban. This is due to the industry’s significant earnings.
Richard Denniss, Executive Director of the think tank, supports this view. However, he notes that the proposal does not consider potential decreases in gambling activity from reduced advertising.
Long believes free-to-air networks have significant flexibility and need not be overly worried. A levy could keep these networks financially viable and allow them to fill ad slots with other advertisers, enabling them to “retain the difference.”
The Greens have persistently criticized the government’s approach. Sarah Hanson-Young, the party’s spokesperson, previously proposed a global tech tax. She argues that there is a clear way to fund public interest journalism while removing harmful gambling advertisements.
Public outrage over gambling advertisements remains strong.
The Albanese government has taken a more conciliatory approach, suggesting that reducing gambling could be achieved by limiting gambling ads to just two slots per hour.
Officials have hesitated to impose a full ban, uncertain about the potential impact on businesses. The possible negative effects on free-to-air networks and other organizations that rely on revenue from gambling advertisements.
However, the Greens argue that Australians are facing numerous problems linked to the overwhelming presence of gambling ads. This issue is unlikely to fade away and will need to be addressed in the near future.
