The Australia Institute has proposed a 2% levy on gambling revenues as part of its lobbying campaign to have the ban on gambling advertising fully implemented in the near future.
The move will see the institute lobby the Green Party to implement the full ban and use the proposed levy as a means to mitigate financial losses incurred by media companies as a direct result of the ban.
Earlier this month, reports in the Sydney Morning Herald revealed that the Australian Labor Government looks set to reject an outright ban on gambling advertising on TV. The report claimed that five independent sources within the government stated that the ban will be rejected in favor of placing limits on TV ads.
The ban, proposed following a parliamentary inquiry chaired by the late Labor MP Peta Murphy, would have prohibited all forms of gambling ads on television, radio, newspapers and online within three years.
Following the report, The Alliance for Gambling Reform published an open letter to the Australian government to follow through on Murphy’s recommendations. The letter was signed by former prime ministers and political leaders, MPs, and union leaders.
The 2% Gambling Levy Proposal
The Institute noted that according to the latest Australian gambling statistics, revenues for 2022-23 totaled AU$17.2 billion. During this time gambling ad spend on free-to-air TV, radio, and online platforms came to AU$239 million.
This means that a levy of just 1.4% would be required to cover the losses incurred by the media companies as direct result a gambling ban. The Institute proposes that a levy of 2% stating that the additional income could be used to mitigate any other losses as a result of gambling activity or budget cuts.
With gambling losses in Australia amounting to around AU$25 billion each year, the Institute feels that gambling companies could easily afford a 2% levy.
The Australia Institute also noted that even should a gambling ban be put in place, other companies from various industries would replace gambling advertisers so the losses to media companies could in fact be minimal.
Stephen Long, of the Australia Institute, said:
“A 2% levy on the gambling industry, which represents a tiny fraction of the money lost on wagering, could compensate the media for any lost revenue resulting from a gambling ads ban.
It’s a rare win-win scenario, it would reduce the harm to the community that gambling advertising causes, while simultaneously guaranteeing a revenue stream for public interest broadcasting. The free-to-air networks could then sell the advertising slots the gambling companies occupied to other businesses while pocketing the levy as well.
Australians experience the highest gambling losses per capita globally, amounting to $25bn annually. This alarming statistic underscores the urgent need for decisive policy measures, such as this, to address the issue.”
The Green Party’s communication spokesperson, Sarah Hanson-Young, said
“The gambling corporations should pay for the lives they are wrecking. This research shows that we can ban gambling ads and fund public interest journalism at the same time, despite Bill Shorten’s excuses for caving to vested interests.”
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.
The Australia Institute, a progressive think tank based in Canberra, has proposed a 2% levy on all gambling revenues in an effort to curb the negative impacts of gambling in the country. The institute argues that the levy would help fund programs to address problem gambling, support communities affected by gambling-related harm, and reduce the influence of the gambling industry on public policy.
Australia has one of the highest rates of gambling in the world, with over 80% of adults participating in some form of gambling each year. This has led to significant social and economic costs, including increased rates of addiction, crime, and financial hardship. The Australia Institute believes that a levy on gambling revenues would help mitigate these negative impacts by providing much-needed funding for prevention and treatment programs.
The proposed levy would apply to all forms of gambling, including casinos, lotteries, sports betting, and poker machines. It is estimated that the levy could generate up to $1.5 billion in revenue each year, which could be used to fund a range of initiatives aimed at reducing problem gambling and supporting affected communities.
In addition to funding programs to address problem gambling, the Australia Institute argues that the levy would also help reduce the influence of the gambling industry on public policy. Currently, the industry spends millions of dollars each year on lobbying efforts to influence government decisions on gambling regulation. By imposing a levy on gambling revenues, the institute believes that the industry would have less financial resources to devote to lobbying, thereby reducing its influence on policy-making.
The proposal has received mixed reactions from stakeholders in the gambling industry. While some have expressed support for the idea of using gambling revenues to fund programs to address problem gambling, others have raised concerns about the potential impact of the levy on their businesses. Some argue that the levy could lead to job losses and reduced investment in the industry, ultimately harming the economy.
Overall, the Australia Institute’s proposal for a 2% levy on all gambling revenues is part of a broader effort to address the negative impacts of gambling in Australia. While there are valid concerns about the potential economic consequences of such a levy, it is clear that action needs to be taken to reduce problem gambling and support affected communities. The institute’s proposal represents a step in the right direction towards achieving these goals.
