Ad dollars flowing to free-to-air television will be squeezed further by the federal government's new restrictions on gambling advertising.
The restrictions, to come into force from the start of 2027, are aimed at commercial broadcast television, radio, sporting events and the use of sports stars to promote gambling.
The gambling and gaming industry spent an estimated $187.75 million on advertising in 2024, down from $239 million in the previous year, according to Nielsen Ad Intel. Most was on free-to-air TV (68%).
Industry body Free TV noted that the latest measures will have a material impact on the advertising revenue that funds free broadcasting services as well as significant implementation costs to comply with technical requirements for online platforms.
Commercial television broadcasters are regulated under the Broadcasting Services Act 1992 to earn revenue solely from advertising.
Free TV CEO Bridget Fair called on the government to consider appropriate mitigation measures to balance the impact of these changes on the sector.
"We are concerned about the revenue impact these restrictions will have on services that are required to be advertiser funded," Fair said.
"The government has consistently acknowledged that mitigation is part of this equation, and we urge it to act on that commitment without delay."
This should include removing the Commercial Broadcasting Tax and expediting the consideration of the News Bargaining Incentive. This tax applies only to commercial broadcasters who invest more than $1.6 billion in Australian content every year.
The reforms, announced in an address by prime minister Anthony Albanese to the National Press Club, will minimise children's exposure to gambling by restricting advertising on broadcast television to no more than three advertisements each hour between 6am and 8.30pm, with a complete ban during live sport broadcasts within those hours.
Gambling advertisements will be banned radio during school drop-off and pick-up times (8am to 9am and 3pm to 4pm) and through online platforms, unless people have a logged-in account, are over 18 and have the option to opt-out.
Celebrities and sports players can’t be used in advertisements, and ads are banned at sports venues and on players' and officials' uniforms.
Odds-style advertisements targeting sports fans are also out.
The government will crack down on harmful and emerging online lottery products, as well as banning online keno "pocket pokies".
The government will develop legislation, with reforms to start January 1, 2027.
"The government is taking decisive action to tackle the community and public health concerns associated with gambling," said prime minister Anthony Albanese.
"We're getting the balance right here, letting adults have a punt if they want to but also making sure Australian children don't see betting ads everywhere they look.
"What we don't want is kids growing up thinking that footy and gambling are the same thing."
Social services minister Tanya Plibersek said gambling harm has a devastating impact on families and communities.
"Every Australian knows someone hurt by gambling. Gambling harm doesn't just hurt individuals – it can have a devastating impact on families and communities," Plibersek said.
"We're making sure a new generation of kids don't grow up thinking having a punt is a vital part of enjoying sport.
"Gambling is increasingly recognised as a contributing factor in domestic violence. Young men are particularly vulnerable to gambling harm.
"These reforms will put the welfare of young Australians first and play a critical role to help prevent family and domestic violence."
Communications and sport minister Anika Wells said the announcement represents reform to reduce gambling harms in Australia's history.
"Gambling addiction is a serious public health issue and this announcement represents strong reform to reduce gambling harms in Australia's history," Wells said.
"From January 1 next year Australians will be able to sit down with their families and cheer on their favourite team without being bombarded by gambling advertising.
"Our reforms will break the connection between wagering and sport, minimise children's exposure to wagering advertising and reduce its saturation across the internet, radio and TV channels.
"Australian parents, families and sports fans have been calling for action, and we thank all those involved for their continued engagement and advocacy as we've worked continuously to get the settings balanced and right."
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