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Labor’s streaming carve-out for gambling ads is a step backwards, says chief reform advocate

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Source :  the age

Prominent gambling reform advocate Tim Costello has blasted the government’s new advertising rules for streaming services as being much worse than the status quo, accusing Labor of removing existing protections to favour sports betting companies at the expense of families.

Some Labor MPs are also concerned that the new laws for streamers represent a backwards step, after this masthead reported that Labor’s long-awaited gambling package will override the current advertising blackout for live sport streamed online between 5am and 8.30pm.

Tim Costello said the latest package from Prime Minister Anthony Albanese and Communications Minister Anika Wells was a backwards step on streaming – where a growing number of Australians watch sport.Alex Ellinghausen

Instead, Labor’s changes will allow digital platforms to start showing registered adult users unlimited gambling ads at half-time and quarter-time breaks unless they opt out – a move critics warn will flood streaming services with betting advertisements.

Costello, the chief advocate of the Gambling Reform Alliance, described the carve-out for streaming services as “the most generous gift to the sports betting companies I have ever seen”.

“What they have put up is much worse than the current state of non-action,” he told this masthead.

“They have removed the protections that were there, which will massively benefit foreign multibillion dollar sports betting companies and the streaming services. It is open slather to take over sports, groom our kids, and make sports and gambling cemented in our culture.”

Gambling reform has been a sensitive issue inside Labor since the late Labor MP Peta Murphy recommended a blanket advertising ban in her 2023 report. The government is dealing with competing demands from reform advocates as well as the media, sports and betting industries.

Former minister Michelle Rowland’s proposal to restrict television ads and totally ban online advertising was canned by the prime minister to avoid a messy fight with industry in the last term of parliament.

Wells’ proposal goes further than Rowland’s by banning the newer online keno and offshore lottery industries, and dealing with online influencers. But it contains looser restrictions than Rowland’s package for television and, in particular, streaming services.

Labor MP Mike Freelander, one of the government backbenchers who has spoken in favour of tougher gambling ad laws, said he had major concerns about the decision to remove the advertising blackout for streaming services and the move needed to be explored further.

Several other MPs in the Labor caucus who have pushed for gambling reform welcomed the government’s package, saying it was a good first step, although they would like to see stronger laws in future – including if this meant Wells’ laws were strengthened in negotiations with the Senate.

The Greens want the government to go further, and the Coalition is determining its position on the laws, which will be probed by a Senate inquiry over the winter break. Liberal backbenchers Simon Kennedy and Andrew Wallace are advocating internally for the opposition to take a tougher stance.

Former Liberal MP Keith Wolahan, who was a member of Murphy’s inquiry, said Labor’s reforms made some progress but fell well short of the committee’s recommendations.

“Any changes should reduce children’s exposure to gambling advertising, not simply shift it onto different platforms,” he told this masthead.

Costello said the package posed a significant problem given streaming services were the future of live sport. Nearly half of Australians already watch live sport through digital platforms.

Both Albanese and Wells have defended the package, saying it is stronger than current settings because it will require streamers showing gambling ads to give a clear and easy-to-access “opt out” option, and children could therefore be protected from seeing gambling ads at all times of the day.

“I think we’ve got the balance right,” Albanese said on Friday.

“There is a carve-out that anyone can choose from their devices. So, for example, if they’re streaming something online, people can exclude themselves from any gambling advertising, full stop.”

Costello said that argument was undermined by data from SBS On Demand, which already offers users an advertising opt out. The latest available figures, reported by Crikey in April, said 16,000 of the streaming service’s 12.9 million registered users had chosen to opt out of ads, including for gambling – about 0.12 per cent.

He wants the government to instead pursue an opt-in model, where people have to actively choose to receive gambling advertisements. Kennedy is also encouraging the Liberals to take that position.

At the very least, Costello said, the current advertising blackout on live sport streamed between 5am and 8.30pm should be reinstated. Under the new laws, the rules remain for television, although the start time has been delayed to 6am.

“[Reinstating the blackout] would be absolutely minimum. It doesn’t make sense, and it’s confusing, if the same game you’re watching has different rules [on different platforms]. That’s unacceptable,” Costello said.

“The world is moving to streaming, and so you need to tackle streaming if you want to set laws that aren’t outdated tomorrow, that are actually helping delink sports and gambling. That’s either a ban, or if you’re generous, an opt-in for the ads.”

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Natassia ChrysanthosNatassia Chrysanthos is Federal Political Correspondent. She has previously reported on immigration, health, social issues and the NDIS from Parliament House in Canberra.Connect via X or email.