Australia Institute Advocates for 2% Levy on All Gambling Revenues

The Australia Institute has proposed a 2% levy on gambling revenues as part of its effort to push for a full ban on gambling advertising in the near future.

The institute plans to lobby the Green Party to implement this comprehensive ban, using the proposed levy as a strategy to offset the financial losses media companies may face as a result of the ban.

Earlier this month, reports in the Sydney Morning Herald suggested that the Australian Labor Government is likely to reject a complete ban on gambling advertising on TV. According to the report, five independent government sources indicated that instead of an outright ban, restrictions on TV ads would be favored.

The proposed ban, initially recommended following a parliamentary inquiry chaired by the late Labor MP Peta Murphy, aimed to eliminate all forms of gambling advertisements on television, radio, newspapers, and online within three years.

Following these reports, The Alliance for Gambling Reform issued an open letter urging the Australian government to implement Murphy’s recommendations. This letter was endorsed by former prime ministers, political leaders, MPs, and union leaders.

The 2% Gambling Levy Proposal

The Australia Institute highlighted that according to the latest Australian gambling statistics, revenues for 2022-23 reached AU$17.2 billion. During this period, spending on gambling ads across free-to-air TV, radio, and online platforms totaled AU$239 million.

Based on these figures, a levy of just 1.4% would suffice to cover the financial losses media companies might incur due to a gambling ad ban. However, the Institute proposes a 2% levy, suggesting that the additional funds could address other losses related to gambling activities or budget cuts.

With gambling losses in Australia reaching around AU$25 billion annually, the Institute believes that gambling companies can easily afford a 2% levy.

The Australia Institute also pointed out that even if a gambling ad ban is enacted, advertisers from other industries could fill the gap, potentially minimizing the impact on media companies.

Stephen Long of the Australia Institute stated:

“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 $25 billion 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, commented:

“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.”