Call for evidence Down Under

Australia’s sports betting industry is facing the possibility of an advertising ban in the name of safer gambling, but Dean Shannon, CEO of Entain Australia and New Zealand, and Kai Cantwell, CEO of Responsible Wagering Australia, told Issue 28 of SBC Leaders magazine it would be a serious error. 

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Evidence-based reform is a term many UK betting observers have become more than used to over the past two years. In Australia, the phrase is also taking on an enhanced place within the industry lexicon.

Developments in Australia from 2021 to 2023 have closely mirrored the UK in many ways, with a federal probe into gambling launched on 15 September 2022. On 28 June this year, parliamentarians made 31 recommendations to the government on updating Australian betting regulations.

Among these proposals, Labor MPs have called for Australia to implement a ‘blanket ban’ on all forms of gambling advertising, following similar trends in the European markets of the Netherlands, Spain, Belgium and Italy, among others.

The ad ban – avoiding unintended consequences

To hear the industry perspective, SBC Leaders reached out to trade body Responsible Wagering Australia (RWA) and prominent operator Entain, which is highly active in the country via its Ladbrokes Australia and NEDS brands.

Dean Shannon, CEO of Entain Australia and New Zealand, said: “We fully recognise that the current level of advertising in Australia is no longer meeting community expectations and we support sensible national reform.

“However, we believe the recommendation to ban all online gambling advertising within three years is not appropriate for a number of reasons. Advertising distinguishes legitimate, regulated businesses from illegal operators. 

“It is important that any changes to advertising rules are considered and evidence-based to ensure there are no unintended consequences. We have seen such unintended consequences in Europe, where the illegal offshore market has thrived in jurisdictions with more onerous gambling advertising regulations.”

Also acknowledging that times are changing, RWA CEO Kai Cantwell noted that “community sentiment has changed” regarding advertising in Australia, and that the industry had reduced the number of ads viewable by Australians.

This change in public sentiment has been seen in a number of ways, such as the cross-sport Reclaim the Game campaign, which has reduced gambling advertising across the AFL, A-League, Cricket, NBL and NRL. As Cantwell pointed out though, operators have also taken it upon themselves to reduce advertising exposure in the country.

Shannon’s Entain is actually one of the notable examples of this, with the CEO emphasising the company’s support for “targeted reforms”. For its part, the firm has withdrawn its sponsorship of Australian sports teams and backs “some changes to limit gambling advertising on TV, such as during live sport and at child-friendly viewing times”.

Cantwell likewise argued for “balanced measures” rather than a total advertising ban. 

He said: “The federal parliamentary committee’s recommendation for a blanket ban on advertising is extreme overreach and will rip hundreds of millions of dollars from sports and broadcasters – money which flows through to regional broadcasters, local and professional sport, sports integrity programs and Australian television content.

“RWA believes that introducing a suite of balanced measures across all advertising mediums would be more appropriate – measures such as broadcast volume and frequency caps, a ban on radio advertising during school pick-up and drop-off times.”

The RWA further explained to SBC that the potential for a ban on promotions is also “extremely concerning”, as such a move would put the legal Australian sector at a disadvantage to black market firms, which would continue to use inducements regardless of the law.

Operators are supportive of regulatory reforms, particularly the much-needed “harmonisation” of regulation, the RWA outlined. However, the association hopes that policymakers will consider the A$6bn contribution the industry makes to the economy each year and pursue reform that is “balanced and informed by a strong evidence-base and industry views”.

Recognition of responsibility

As with many highly-developed gaming markets, Australia’s sector is constantly evolving, Shannon reflected, and Entain has positioned itself to be “at the forefront of new product” and innovation.

This has seen the group invest in its multi-product offering, such as the same-game-multi and same-race-multi, and work to strengthen its position as a “racing led-brand” via launching features such as the Ladbrokes Racing Club.

Betting products are not the only area of focus, however, particularly against the backdrop of heightened expectations around player protection and safer gambling in Australia. Entain’s innovations in this area include Punter Assist, a suite of flexible tools that enable bettors to manage accounts with the intention of ‘being in control’.

Shannon explained: “We believe that gambling should be an enjoyable leisure activity for all of our customers, but also acknowledge and understand the social impact that Problem Gambling has on our community. 

“We recognise our responsibility as a wagering operator to contribute to the better understanding and prevention of problem gambling. We have a safer gambling strategy that encompasses all of our customer protection policies and practices, and requires ongoing review and evaluation which drives continuous improvement.”

For Cantwell, the RG activities of the likes of Entain – which also invests in research and monitors customer accounts as other aspects of its safer gambling policy – show that RWA members “have world-leading consumer protections that only exist in account-based gambling”.

In the same way betting stakeholders stress the need for reforms to be evidence-led, betting operators have been able to make “evidence-based assessments” of player harm and intervene when necessary using their customer monitoring tools, the RWA CEO explained.

It is not actually the wagering side of gambling that should be the focus of reform in Cantwell’s view, as he highlighted that land-based gaming, particularly the poker machines present in this sector, contribute to more than 50% of gambling harm in Australia.

“Therefore, to reduce gambling harm, any regulatory changes must be applied consistently across all forms of gambling, not just online wagering,” he said.

From the outset, it is clear that Australia’s operators are facing a similar situation to that faced by their UK counterparts in recent years, as regulatory challenges mount. 

Summarising, Shannon concluded that the industry must be supportive of reforms, but also strive to ensure one crucial factor – that any changes are evidence-led.

“We can’t be too downcast given we are coming off some robust growth years driven by the unique circumstances of COVID, but the difficult part for our category has been the rising impost, particularly of increased Point of Consumption Taxes, which in many cases have been modelled off unsustainable levels of turnover.

“There is also a challenge around regulatory uncertainty following the Parliamentary Inquiry into online gambling and its impacts on those experiencing gambling harm, and some of the recommendations stemming from that report.

“While these are only recommendations at this stage, a number if implemented, would have a significant impact on business performance. It is important to stress that we are supportive of many of these recommendations, but want to ensure that any reform is well-considered, and evidence-based.”