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.
Australia Institute to Lobby for 2% Levy on All Gambling RevenuesFollowing 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.
Australia Institute to Lobby for 2% Levy on All Gambling RevenuesWith 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.
Australia Institute to Lobby for 2% Levy on All Gambling Revenues
The Green Party’s communication spokesperson, Sarah Hanson-Young, said
Australia Institute to Lobby for 2% Levy on All Gambling Revenues
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.