A levy on the gambling industry would raise hundreds of millions of dollars and cover all the advertising losses of news and broadcasters if a ban on gambling ads was introduced.

Research by progressive think tank Australia Institute has found that a levy of just 1.4 per cent on gambling revenue would replace all the lost income that the gambling industry is spending on free-to-air TV, radio and digital advertising.

Rounding the levy up to 2 per cent could also help fund the ABC.

Stephen Long, senior fellow at the Australia Institute, said that the policy has “good odds that it would be a vote winner”.

“A 2 per cent 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,” he said.

“There would even be enough left over to replace some of the money that the ABC has lost in budget cuts as well.”

With gambling revenues totalling $17.2 billion in 2022-23 and the gambling industry spending $239 million on advertising, according to the Australia Institute, the levy would raise about $340 million.

It is estimated that Australians lose about $25 billion each year from legal gambling, which represents the largest per capita figures for losses in the world.

In 2019–20, Australia’s per capita gambling expenditure/losses were estimated at $1068. Gambling losses per capita are still highest for poker machines, but that figure is dropping while losses for wagering (races, sports, other events) is increasing.

Some 38 per cent of Australians gamble at least weekly and almost half of gamblers are classified as being at risk of gambling harm, the Australian Institute of Family Studies reports.

‘Once in a lifetime’

The Albanese government is mulling over reforms to gambling advertising recommended by a bipartisan Senate committee chaired by the late Peta Murphy.

A furore broke out when Nine newspapers reported that instead of a blanket ban on advertising during sports broadcasts, as the committee had recommended, Communications Minister Michelle Rowland planned to introduce a cap of two ads per hour on each channel until 10pm.

Michelle Rowland is the minister in charge of bringing any legislation on gambling reform to Parliament. Photo: AAP

Martin Thomas, CEO of the Alliance for Gambling Reform, said a levy could be a good idea if it is one part of the solution – as recommended by the Senate report – and the gambling industry has no say in how the money is spent or allocated.

“We are at a point in time where we potentially have a once-in-a-generation opportunity for reform. We can’t remember a time when it’s been on the national agenda as much as this,” he said.

“If we miss this opportunity, we may not get another for decades.”

He said that although he is “loath to suggest more money goes to broadcast companies”, it could be a transitional measure while gambling ads are banned.

“The ad ban that Peta Murphy suggested is to be phased in over three years,” he said.

“It would be a terrible thing if that was what stopped reform in gambling in Australia, which will save and transform so many people’s lives.”

Loopholes

The Standing Committee on Social Policy and Legal Affairs, chaired by Murphy, made 31 recommendations including “a comprehensive ban on all forms of advertising for online gambling’’ and a ban on gambling ads during sporting events.

Thomas said that caps and restrictions can make the situation worse after a 2017 change to advertising rules led to a 40 per cent increase in gambling ads.

“If they just tinker with restrictions on how many ads and when ads can be put on air around sporting events, it leaves people exposed,” he said.

“There are always loopholes and ways around caps not just on air, but through social media and other online platforms.”