By BBBB
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.”
English