A recent study by the Australia Institute has proposed a small levy on gambling revenues to offset the potential loss of advertising income from a proposed ban on gambling ads. This levy, according to the report, could not only replace lost advertising revenues but also provide additional funding for public broadcasters like the ABC.

In the fiscal year 2022-23, gambling companies in Australia generated revenues totaling $17.2 billion, while spending approximately $239 million on advertising across various media platforms. The Australia Institute suggests that a levy of just 1.4% on gambling revenues would be sufficient to cover this advertising expenditure. By increasing the levy to 2%, additional funds could be redirected to mitigate recent budget cuts to the ABC.

Stephen Long, a Senior Fellow at the Australia Institute, emphasizes the dual benefits of this approach: “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. There would even be enough left over to replace some of the money that the ABC has lost in budget cuts as well.”

The implementation of such a levy is seen as a win-win situation. It would not only help reduce the harmful impact of gambling advertising but also ensure a steady revenue stream for enhancing public interest broadcasting. This would allow free-to-air networks to reallocate advertising slots previously used by gambling companies to other businesses, potentially increasing their revenue.

The need for decisive policy measures is underscored by Australia’s position as the country with the highest gambling losses per capita globally, totaling $25 billion annually. Long adds: “For the media and the Australian public, this represents a rare win-win scenario.”

Political and Public Reaction

The proposal is gaining traction among certain political circles, with the Greens advocating for the levy as part of a broader initiative to completely ban gambling ads, contrary to Labor’s more conservative approach of imposing caps. The suggestion comes in the wake of a bipartisan inquiry, which also supported a total ad ban.

The Greens’ communication spokesperson, Sarah Hanson-Young, criticizes the opposition to the ban, stating: “the gambling corporations should pay for the lives they are wrecking.” She argues that the research demonstrates the feasibility of banning gambling ads while simultaneously funding public interest journalism.

As the government mulls over various proposals, including the controversial ad ban, internal dissent and public debates are shaping the policy landscape. Senior government figures defend partial ad bans due to financial dependencies, while backbench MPs push for more comprehensive measures.

Furthermore, the social services department is reviewing the broader implications of the June 2023 report’s recommendations. Stakeholders are eagerly awaiting concrete proposals, with some advocating for urgent reforms to address gambling-related harms more effectively.