In the latest update covering the Australian gambling ads ban legislation, there appear to be a few cracks in the plan ministers have not yet thought through. (Photo by Amber weir on Unsplash )
The gambling advertising saga continues in Australia as the Australian federal government mulls over when to enforce new laws.
Right now, the consensus appears to be that all ads for gambling websites and high street bans will end within the next three years. It is a hard stance that will drastically affect the industry players like Entain (operator for Ladbrokes and Tabcorp), 888Sport, and other big brands operating in the country.
It is a ban that is in line with cigarette advertising, which most people agreed with because of the detrimental harm to people’s health. However, is gambling a hobby that should equally become restricted and heavily taxed?
According to the Australian government, it is. And there are also other countries that envy the stance the bigwigs down under are taking. One of the key reasons for the ban is that gambling apparently is a crisis that threatens mental health and has the ability to financially ruin Australian players.
On top of this, a recent ABC News report highlighted how Aussies outspend the rest of the world when it comes to gambling. A major concern that has swung the government into action.
Calls for National Regulator: On top of the gambling ad bans, there is also a call for a national gambling regulatory authority. Right now, operators need licensing for each state, while some feel a country-wide licensing authority like the UKGC would be more beneficial.
A Comical Fiasco Made by Incompetent Big Wigs or a Genius Plan?
In some ways, that is true, but, this is just another case of big brother watching you and tightening the reigns.
That being said, the Aussie government does have more to lose than gain because these sports betting websites and high street bookies as well as gambling venues contribute large tax dollars. A ban on advertising will harm the gambling industry’s revenue thus reducing tax income for the government. Unfortunately, as usual, all this will mean is further tax hikes down the line reducing profits for operators and increasing the Aussie fiscal budget’s coffers.
I look at it as a comical situation that is a disaster waiting to happen. It really could spell the end of legal gambling in Australia and here is why.
- Taxes: When the Aussi government’s tax base from gambling companies go down, these companies will end up facing tax increases – every Western government’s solution to lower fiscal income.
- Monopoly or Duopoly: The result will mean operators will exit the Aussi gambling market simply because taxes are too high. This will create a small number of big companies monopolising the Aussie gambling market – so much for a free market under democracy.
- Higher Spreads: To make up for higher taxes and loss of revenue through lack of advertising, the players will pay. Higher spreads on bets will make it more difficult for sports betting fans to win.
- Fewer Bonuses: Although there are plenty of restrictions on gambling bonuses in Australia already, the current offers will become less attractive.
- Perfect a Black Market: The points above will send players to overseas Australian casino sites. These are sites not protected under Australian laws as intended by the government. What’s more most of these sites have legit licensing, so they are still safe for Aussi players making the job of preventing a larger black market almost impossible to keep under wraps.
My Verdict: It is not the fact I am not for the banning of gambling advertising. I mean if it causes the harm the government says it does then ok. However, my concern is the monster it will create.
A Monster Online Gambling Market is Lying in Wait
I’ve always said this about the Australian gambling scene – the government is its own worst enemy when it comes to creating these new laws. In the end, taking away advertising will affect the players the most. And in the background, there will be a casino operating under the Curacao licensing authority already accepting Aussie players who want to play using crypto or Australian Dollars.
The Result: An army of Aussi players heading to overseas casinos where they can already play online slots and live casino games. Soon sports betting fans will also head in the same direction.
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