Betting companies not worried by restrictions on gambling ads

In just five years, we might not see any betting companies displayed on football jerseys in Australia.

That is the opinion of an industry insider with one of the country’s biggest bookmakers, in light of nationwide reforms to address the ongoing issue of problem punting.

Talking on the condition of anonymity, the source said he and his peers preferred to see the glass half-full when discussing how the changes could impact both his industry and the many clubs and organisations which benefit from gambling revenue.

Those changes will include revisions on gambling advertising during prime-time television and radio slots.

An AFL Fan Association survey’s results earlier this month meant grim reading for sports betting organisations across the nation.

Some 76 per cent of the 2,924 supporters polled believe gambling advertisements should be banned from TV and radio broadcasts.

READ: AFL to continue with gambling ads despite fan concerns

But the industry insider said betting companies were a long way off panicking just yet.

“I think we can fully expect that there will be further restrictions that would primarily be around advertising, and in particular TV advertising,” the source told BettingSite.com.au.

“I think now you can turn on the six o’clock news, and it’s pretty much gambling advertising and nothing else.

“So in some ways we’ve probably made a rod for our own backs a little bit in such a competitive space.”

Indeed, the planned state and national reforms will shake up all aspects of the gambling industry.

A federal government committee adopted an inquiry into online gambling and its impacts on problem gamblers on September 15 last year, following a referral from the Minister of Services, Amanda Rishworth.

And in New South Wales, the new Labor government led by Chris Minns will reinvest the $100 million penalty paid by The Star Sydney casino into measures and programs that reduce harm caused by problem gambling.

The Minns government will also allow third-party exclusion for problem gamblers, which will include family members and police.

READ: NSW Labor reveals gambling reform plans

With governments continuing to regulate how gambling is conducted and the messaging around it in Australia, the insider said his colleagues could see this moment arriving over a year ago.

“We as a business made a decision 12 to 18 months ago to scale back on sport,” the spokesman said.

“Part of that was probably because we could see the writing on the wall.

“I think within two to five years you won’t see sponsors on the back of football jumpers.

“You only have to read what’s happened in the UK. There’s definitely a push there with the Premier League to not have gambling advertisements.

“And regulation over there is probably a year or two ahead of where we’re at.

“But not for a moment have we thought ‘we want to lead the way in this space’. The reality is we’re also a racing-led business.”

The industry insider said his business was in a good position to remain strong financially in light of decreasing its advertising exposure across Australia’s football codes.

“In terms of actually sponsoring teams, having our brand on jumpers in stadium LED lights – we think that’ll be eventually taken away,” he said.

“People will still bet on sports, but we won’t spend extra marketing dollars in that space.

“A young person’s first bet is still most likely to be on their football team. That’s still going to be a part of our mix, but the margins in sport are low.

“The product fees, particularly in the NRL and AFL, make them close to losses for us in terms of what they return to our business.

“To spend the money from a marketing point of view in that channel doesn’t make a whole lot of sense.”

On the contentious subject of whether gambling should be tightly regulated and whether governments were intruding on the freedoms of Aussie punters, the industry insider was circumspect.

“I think it’s a fine line. I don’t disagree with that (regulation getting tighter) sentiment, but I think we’re also in the camp of player safety and responsible gambling,” he said.

“So what we really want is evidence-based decisions.

“If there’s evidence that proves increased advertising increases harm, well then that’s a very valid reason to be scaled back.

“The danger is where decisions are made on a whim or the view of a few, or whatever it might be.

“But if the data is there, we’re a data-led business. And if there’s data to support it, then that’s not a hard decision.”

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