Australia proposes 2% levy to make up for gambling ad revenue loss

Australia is caught in the midst of a fiery debate. Politicians across the spectrum are calling for both restraint and decisiveness in the matter of gambling advertisement, an issue that continues to plague public discourse.

The government of Prime Minister Anthony Albanese has been reluctant to enact a blanket ban on gambling advertisements, citing concerns that this would deprive free-to-air TV and metropolitan radio of $240m which they need to remain operational.

Australia sees 2% levy on gambling companies as palliative for gambling ad ban

The Greens have argued that a counter-tax on global tech giants could be levied instead to plug the gap left by a potential blanket bank on gambling advertisement, but passing and enforcing such a law could be very hard.

What if the same tech companies you are trying to tax simply exit the market with the products you are trying to levy? Now, an alternative looms as a local think tank, the Australia Institute, has suggested that a 2% levy on gambling companies’ revenue could help in the case of a complete ban.

Australia Institute Senior Fellow Stephen Long has said that a 2% levy on the gambling industry would indeed help set off any potential loss of revenue from a gambling advertising ban, given how high the revenue in the industry already is.

His opinion was shared by colleague Richard Denniss, who works as Executive Director at the think tank. However, he cautions that the Australia Institute did not account for any potential reduction in gambling activity caused by gambling advertisements.

Long is similarly optimistic that free-to-air networks have much leeway and need not panic. If a levy is enforced, it would allow the networks to remain sustainable, while also landing their ad slots to other companies and advertisers, and "pocketing the difference."

Naturally, the Greens have been criticizing the government repeatedly. Party spokesperson Sarah Hanson-Young, who previously pitched the idea of a global tech tax, has said that there is a clear way to fund public interest journalism while banning gambling advertising which is already harming the public, she said.

Public indignation against gambling advertisements not going anywhere

The Albanese government has tried to strike a much more consolatory tone and argued that gambling ought to be reduced granted, by simply limiting the gambling ads to two spots per hour.

Officials have been reluctant to pull the plug as they are not sure what the consequences for business would be and whether that would not harm both the free-to-air networks and other outfits that have benefited from the revenue generated from gambling advertisements.

However, for the Greens, Australians are suffering from a range of issues traced back to excessive gambling advertisements. This issue is unlikely to blow over and it will have to be resolved soon.

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