Australia Proposes 2% Gambling Levy

A 2% levy on the Gross Gaming Revenue (GGR) of gambling companies has been proposed in Australia. The aim of this levy is to compensate for the revenue loss that media companies would incur if gambling ads were banned. According to research conducted by The Australia Institute, a ban on gambling ads could lead to a loss of AUD 240 million (NZD 260 million) in revenue for media companies.

The proposal suggests that the levy would reduce the dependence of Australian media companies on gambling ads. In the 2022-23 fiscal year, gambling companies in Australia generated approximately AUD 17.2 billion (NZD 18.6 billion) in revenue. The 2% levy would help compensate for the $240m in advertising income that media companies would lose if the current government adopted the total ban.

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Highest Gambling Losses Per Capita

The Australia Institute indicates that a 1.4% levy would be sufficient to offset the expected loss in advertising revenue, but a 2% levy is considered a “safer compensation and a more effective alternative”. This measure is seen as a “rare win-win situation,” as it would both reduce gambling-related harm and provide a new revenue stream for public broadcasters. The proposed levy is part of a broader discussion on regulating the gambling industry and protecting society from the harmful effects of gambling.

Australians experience the highest gambling losses per capita globally, amounting to AUD 25 billion (NZD 27 billion) 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, emphasised the social cost of gambling by stating, “the gambling corporations should pay for the lives they are wrecking.”

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“In Favour Of Online Casinos”

While there is ongoing discussion, it remains uncertain whether Australia will implement a total ban on gambling ads. Although this idea was recommended by the Murphy Commission, not all political parties support such a drastic measure. The Labor party, for instance, favours a partial ban on gambling ads in Australia.

Labor’s preference includes easing the ban with specific restrictions, such as prohibiting gambling ads during and around children’s programming and live sports broadcasts. It is, however, expected that there will be a ban on online gambling ads, in line with the recommendations of the Murphy Report.

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Current Gambling Law in Australia

Australia’s gambling laws are regulated primarily by state and territory governments, with each region having its own set of rules governing gambling activities. The federal government also plays a role in regulating online gambling, primarily through the Interactive Gambling Act 2001. This act prohibits the provision of certain online gambling services to Australians, including online casinos and poker. However, sports betting and lotteries are generally allowed if licensed by the relevant state or territory.

Recent years have seen increasing scrutiny and regulation of gambling advertising, particularly concerning its impact on vulnerable groups, such as children, young adults and those prone to gambling addiction. The proposed levy and discussions around advertising bans are part of this broader effort to better regulate the industry and mitigate its potential harms.

The landscape of gambling regulation in Australia is continually evolving, with ongoing debates on how best to balance the interests of the industry with the need to protect the public from gambling-related harm.

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Stricter Warnings on Gambling Ads

In an effort to curb the harmful impact of gambling, Australian authorities have introduced stricter regulations requiring more prominent and explicit warnings on gambling ads via tag-lines. These warnings are part of a broader strategy to raise awareness about the risks associated with gambling and to deter potential problem gamblers. The new regulations mandate that these warnings must be displayed more prominently in all forms of gambling advertising, including online platforms, television, and print media. This move aligns with ongoing efforts to reduce gambling-related harm in the country, especially among vulnerable groups such as minors and those with gambling addictions.

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National Self-Exclusion Register

In another significant development, more than 10,000 Australians have opted to self-exclude from online gambling through a national self-exclusion register. This initiative, which allows individuals to voluntarily ban themselves from participating in online gambling activities, reflects a growing recognition of the need for personal responsibility and self-regulation in combating gambling addiction. The register provides an important tool for those struggling with gambling problems, enabling them to take proactive steps to prevent access to online pokie sites and thus reduce the risk of harm.

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